Impact’s Tequila “Hot Brands” Continue Rising In 2023

Earlier this year, a total of 12 Tequila labels earned Impact “Hot Brand” honors based on their 2022 performances. With the category continuing to climb—especially at the premium end—nearly all the award winners posted solid growth in control states in the first half of this year, and two-thirds of them expanded by double-digits. As a group, Tequila’s Hot Brands showed a 20% volume increase in control states during the first six months of 2023.

At the top of the ranks, Diageo has two upscale Tequila labels in high gear with Casamigos and Don Julio. “We’re still seeing very strong growth on both brands,” Diageo CEO Debra Crew told analysts last week, noting that on-premise gains continue to be robust. “From a $40 range up to a $100 range, (Tequila) is growing very fast, and that is really what’s driving the growth.” Casamigos recently launched a new Cristalino expression retailing at $61 a 750-ml., while Don Julio received a new ad campaign titled Por Amor, For the Love.

Among the fastest-growing Tequila labels in control states in the first half was Heaven Hill’s Lunazul, which has already surpassed 1 million cases in rolling annual volume. “Lunazul is one of our hottest brands for sure,” says Matt Blevins, CMO at Heaven Hill. Similarly, Campari-owned Espolon continues to rise at a rapid rate. “Espolon has been a massive growth driver for us, and I still see enormous opportunity there,” notes Melanie Batchelor, recently named managing director of Campari America. “We’ve also just launched an ultra-premium Tequila, Mayenda, one of the first brands in a long time that we’ve created ourselves. We’re making a big investment in that brand.”

Teremana Tequila, the brand launched by Dwayne “The Rock” Johnson, Ken Austin, Jenna Fagnan, and Dany Garcia along with Mexico’s Lopez family, officially surpassed 1 million cases on a rolling 12-month basis this spring. To meet growing demand the brand has invested in the construction of an expanded distillery, slated to begin production towards the end of the year.

Cazadores from Bacardi and Milagro from William Grant & Sons likewise continue to climb at double-digit rates. Cazadores could approach 900,000 cases this year overall if first-half control state numbers hold, while Milagro could top 700,000 cases. “Milagro has been our strongest growing brand, and it’s growing in all variants,” William Grant & Sons USA president Paul Basford recently told SND. “We’ll continue to grow the spend, and we’ll also continue to push Milagro further with innovation, which will be coming early next year.”

Two of Proximo’s upscale Tequila Hot Brands, 1800 and Gran Centenario, also remain on the rise. Gran Centenario recently teamed up with Cristo Fernández, Mexican actor and former soccer player, for a new campaign promoting the brand. At Beam Suntory, meanwhile, Hornitos expanded by 10% in control states in the first half, after nearing 1.7 million cases in the U.S. in 2022, according to Impact Databank.—Daniel Marsteller

Tagged : 1800, Bacardi, Casamigos, Cazadores, Diageo, Don Julio, Espolón, Gran Centenario, Milagro, Proximo, Teremana, Willian Grant & Sons

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