Distillery expansion under way for Teremana Tequila

Teremana, the Tequila brand co-founded by Dwayne ‘The Rock’ Johnson, is expanding its distillery to meet increasing demand as the brand pursues international growth.

The new distillery will be in addition to the original site, both of which will be located on Teremana’s Destilería Teremana De Agave land.

Production at the two facilities will continue to be overseen by the Lopez family, who are third-generation agave growers and second-generation distillers.

“We are committed to maintaining the high-quality of our Tequila as we continue to grow,” said Richard Black, CEO of Teremana Tequila. “Over the course of the last four years, we have seen such unprecedented growth on Teremana.

“I’m pleased to share that we are currently in the process of expanding our distillery in Jesús María and that we are confident in the supply of our exceptionally high-quality liquid.

“This expansion will enable us to uphold our small batch process, while meeting the increasing demand from consumers in the US and on an international scale.

“At the new distillery – which will continue to be overseen by the Lopez family – the same meticulous, time-honoured, and handcrafted process will be replicated with the addition of more small brick ovens and locally handmade copper pot stills – to ensure complete consistency in quality and taste.”

Teremana recently revealed it will expand into five new markets this year: the UK, UAE (Dubai), Australia, Colombia and Germany, in addition to having just launched in global travel retail (GTR).

“To land on these five targets, we weighted our market opportunities across a diverse set of factors, such as spirits and Tequila category potential, consumer trends, cultural relevance of the category, and various other relevant factors,” explained Black.

“Our thinking is that we have an incredible brand with a visionary founder, who has the unique ability to transcend the category; we also see ourselves as catalysts for market growth, poised to play a pivotal role in driving global expansion within the Tequila category.”

Is Tequila taking market share from other categories?

Black noted how the brand has seen a “growing preference” for its aged Tequilas, such as Teremana Reposado and Teremana Añejo, “indicating a shift towards appreciating Tequila as a sipping spirit”.

But is Tequila convincing drinkers from other categories to switch? Potentially, yes.

“In the US, the Tequila category remains considerably smaller than vodka and whiskey,” Black said. “Therefore Tequila still has room for growth compared to other major categories.”

He continued: “Qualitatively, we have seen Cognac drinkers embrace the Tequila category; this observation comes as a result of IWSR Drinks Market Analysis. The Spirits Business itself reported that the IWSR found that ‘Cognac drinkers are two times more likely to drink Tequila than alcohol drinkers in general’, and ‘in the past six months, more than one-fifth of Cognac drinkers said they consumed Tequila on their last drinking occasion’. With the continued rise in awareness of agave spirits, we anticipate this trade to occur across other brown spirit categories too.”

Global conglomerate vs start-up brand

Black joined Teremana Tequila as CEO in late 2022. His role prior to this was with Westward Single Malt Whiskey, where he revived the brand and helped deliver 300% growth in the ultra-premium whiskey category.

Before Westward, Black spent more than a decade at Gruppo Campari, spanning several executive positions. He was responsible for directing the rum category acquisition and helped to build a global portfolio strategy.

“Joining an incredible success story such as Teremana, which is spearheaded by a visionary founder like Dwayne Johnson, presents an unparalleled opportunity,” Black said. “Dwayne’s authenticity and unwavering commitment to the brand serve as inspirational cornerstones, propelling us forward with an incredible momentum.

“The other members of the founding team, Jenna Fagnan, Dany Garcia, and Ken Austin, also play a strong role. Their entrepreneurial spirit and diverse perspectives infuse our endeavours with innovation and resilience, fostering an environment where creativity thrives and boundaries are pushed.

“Contrasting my experience with Campari, which was undoubtedly enriching, Teremana offers a distinct landscape with a diverse set of stakeholders. While at Campari, I had the privilege of working across a diverse portfolio of brands, each with its own legacy and market presence.

“However, the focus on a single brand like Teremana allows for a deeper level of immersion and strategic alignment. Additionally, Teremana’s relatively early stage presents an exhilarating challenge as we embark on the incredible journey of building a brand from its formative years, setting the stage for a legacy that resonates globally.

“Together, with our remarkable team and steadfast partners, we are poised to continue redefining tequila and building a sustainable brand that endures for generations to come.”