Don Julio aims for global expansion
With sales declining in North America, expanding to the rest of the world is a ‘huge priority’ for Diageo’s top-selling Tequila, Don Julio.
Diageo reported that Don Julio sales in the first half of fiscal 2024 were down by 1%, due to declines in the Latin America and Caribbean (LAC) region and North America. Elsewhere in the world, the brand’s 1942 expression had a strong performance – experiencing growth in Europe, Asia Pacific (APAC) and its ‘Travel Retail Asia and the Middle East’ segment.
Speaking to The Spirit Business, the senior vice-president of global Tequila and mezcal categories at Diageo, Sophie Kelly, explained that the brand is focusing on its global aspirations.
“We started our expansion to the rest of the world nine months ago, so that’s a huge priority,” Kelly said. “We are in more than 36 markets globally with Don Julio, and that’s across APAC, Latin America, Southern Europe and Northern Europe.
“Europe is a massive driver of growth, as is APAC. Reposado is having a strong moment, but there’s more education to be done around the different occasions for Tequila – from craft cocktails to sipping, and how people are swapping out different occasions, from vodka to Cognac, into different serves across Tequila.”
Tequila is making waves in travel retail and Kelly added that Don Julio is looking at gifting and “other cool stuff” to go into duty free stores.
She also sees a big opportunity with 1942’s small-size bottles. The brand’s 1942 Chaparritos – mini 50ml bottles of 1942 – contain a single serve and “open up luxury at a more accessible point for people”.
“We’re starting to see them go into nightlife moments,” Kelly added. “For us, it’s all about making something feel special, but still allowing people to access it. When you think about what we’re doing with all the rare high-end stuff, how do you allow people to touch those experiences in a more accessible way, while still keeping it special and keeping the charm?
“That’s the 1942 mini bottles. I love these little guys. You can tailor them with a name; it’s a little way to allow people to come into the category and experience it in a special and personalised way.
“The sophistication of the category in North America and Mexico is just not the same everywhere else. Educating and inspiring people on how to come into the category is super important.”
Future vision
Kelly says Don Julio is utilising technology to accelerate this education. The brand is launching an experience on Apple Vision Pro that it says will bring people closer to its ‘history, heritage and Tequila-making process from anywhere in the world’.
“We’ve got a whole area of innovation coming through in relation to tech that we’re playing with right now,” she adds. “You can get closer to the way we make Tequila in Mexico, which I think will be super exciting.
“Take education into people’s homes, take rare liquids out to the world in different ways so that they can get engaged in it. You take people to Mexico to explain how we create our liquids. That’s what we’re about right now.”
Recently, Diageo launched a digital platform that uses Flavourprint technology to help recommend recipes to people, with Don Julio El Diablo a trending cocktail.
Earlier this week, the brand unveiled its cask-finished 1942 Tequilas, which will be auctioned on BlockBar until 20 June at a starting price of US$35,000 per cask.
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