Tequila drives ultra-premium spirits in US on-trade
Premium-and-above spirits have taken share from value and mid-tier brands in the US on-trade, led by Tequila’s popularity in nightclubs, CGA by NIQ has revealed.
Using its On Premise Measurement (OPM) data in the 52 weeks leading to 17 May 2025, CGA found premium brands now take up 35.6% of total spirits sales by volume in US bars, clubs and restaurants.
This is up by 0.4% in comparison to last year. Looking in the higher price range, ultra-premium spirits were up by 0.5% to 6.2% of total share by volume.
The growth of ultra-premium spirits was said to be driven by ‘increased distribution’, particularly in nightclubs where there are more high-priced offerings.
Ultra-premium brands increased their share to 2.2% in nightclubs, while in casual dining and bars, this price tier had a 0.5% and 0.4% share of total spirits volume respectively.
Looking individually at categories, CGA said Tequila had a ‘stellar year’ in the ultra-premium segment. Tequila took volumes from other segments like gin, whiskey and cordials in ultra-premium, which all lost share in total ultra-premium volumes.
Tequila took 3.7% of ultra-premium spirits volumes in the year to mid-May.
Meanwhile, looking at value and mid-tier brands, ultra premium’s gain share was said to have come at the expense of these tiers. Value brands accounted for 17.3% of spirits volumes, marking a year-on-year drop of 0.2%. Mid-priced products then lost 0.5% to represent 22% of spirits volume.
Matthew Crompton, CGA by NIQ’s vice-president, Americas – on-premise, said: “Although overall volume is down for higher-priced spirits, ultra and premium segments are gaining share, driven by Tequila and the premium influence in nightlife venues.
“Nevertheless, value and mid-tier options remain a vital part of the landscape, and optimising assortments in bars, clubs and restaurants is crucial. For suppliers and operators, this trend signals a critical opportunity to align portfolios, pricing, and distribution strategies with evolving consumer preferences and premiumisation momentum.”
Looking at states, California is the largest market for ultra-premium spirits, where there’s a 9.7% share of total volume (an increase of 0.3% on the previous year).
In May, CGA also revealed that US on-trade spirits sales are now near pre-Covid levels.
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