Diageo’s Don Julio Leads Growth At Tequila’s Top End

Diageo’s Don Julio has been at the forefront of growth in Tequila’s above-$40 segment recently, reaching 2.45 million cases last year on a 14.5% rise, according to Impact Databank. The brand is the fourth-largest Tequila in the U.S. by volume, behind only Jose Cuervo, Patrón, and portfoliomate Casamigos, and has shown some of the strongest momentum in the category recently.

A decade ago, Don Julio was at 360,000 cases in the U.S. Since then, the brand’s popularity has exploded, along with consumer interest in higher-end Tequila. “As Tequila continues to grow its share of the total U.S. spirits industry, Don Julio leads as the number-one share gainer within the Tequila category,” Karen Harris, vice president of Don Julio at Diageo, tells SND, citing NABCA and Nielsen data.

Harris attributes the brand’s momentum to its limited releases, new bottle sizes, and marketing strategy. A steady pipeline of limited editions and new Tequilas have been added to the Don Julio portfolio, most recently this year’s Alma Miel ($100 a bottle), made from Blanco Tequila distilled with agave honey and 14-month-old Añejo Tequila finished in Crémant de Limoux casks.

Alma Miel followed last year’s launch of a Rosado expression. “With its launch earlier this year, Tequila Don Julio Alma Miel placed as a top innovation,” Harris says. “Since Tequila Don Julio Rosado joined the brand’s portfolio of luxury offerings last year, the variant has been well-received for its versatility and celebratory nature.”

Diageo also recently made the ultra-luxury Don Julio 1942 available in 375-ml. ($90) and 50-ml. ($15) bottles, creating greater opportunity for consumer trial at more approachable price points. “Originally launched during the first-ever spirits integration at the 2024 Oscars, the 50-mls. have driven trial with consumers, becoming the quintessential summer accessory,” says Harris.

On the promotional front, Don Julio partnered with Sony Music Latin artists for “A Summer of Mexicana” private concert series, as well as shows for Jimmy Kimmel’s summer concert series. “As part of the ‘Summer of Mexicana’ programming, we launched Artist Edition packaging and teamed up with Mexican illustrator Dia Pacheco to create a limited design for Tequila Don Julio Blanco and Tequila Don Julio Reposado,” Harris noted. The limited-edition Blanco retails for $45 and the Reposado for $50, with both available in select retailers across the U.S.

Even considering the robust gains made by Don Julio and luxury Tequilas overall in the last few years, Diageo still sees more runway for both the category and the brand, noting that both are far outpacing the overall spirits industry. “Luxury tequila is an ‘affordable luxury’ and the main growth driver in the Tequila category,” adds a Diageo spokesperson. “We’re also seeing that premiumization is particularly driving Tequila growth as consumers look to explore new innovations and experiences, with super-premium Tequila delivering almost 50% of the dollar share.”—Shane English

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