Retailers On The Latest Developments In The Agave Category 

Agave spirits like Tequila and mezcal have benefited from a wave of consumer interest, with diverse demographics training their focus on super-premium offerings. “As you see liquor sales as a whole unfortunately slow down, Tequila is still going very strong,” says Mike Moreno Jr., co-owner of Moreno’s Casa Tequilera & Liquors in Chicago.

Moreno sees more women and African Americans becoming interested in Tequila. Tastings and educational seminars have been keys to category expansion at the retail tier. Moreno’s typically hosts two to six educational seminars a week ranging in price from $20-$100, and at least half of them feature Tequila.

Don Julio ($45 a 750-ml. of Reserva Blanco), Centenario ($24 a 750-ml. of Blanco or Reposado), and 100 Años ($12 a 750-ml. of Blanco or Reposado) lead Tequila sales at Moreno’s. “The trend of people buying $100 bottles and up during the pandemic has kind of died,” Moreno says. “With inflation and everything else, consumers are looking for a big bang for their buck. For the most part, people are looking for Tequilas in the $20 to $40 price point for cocktailing.” Leading mezcal brands at Moreno’s include Banhez Espadin & Barril Moreno’s Edition ($30 a 750-ml.), 400 Conejos Espadin ($32 a 750-ml.), and Derrumbes Oaxaca ($75 a 750-ml.).

At Sparrow Wine & Liquor Co. in Hoboken, New Jersey, in-store tastings and hand-selling are also driving Tequila sales. “In-store tastings are very important,” says store manager and spirits and beer director Laz Luis. “Once the consumer has a chance to sample the product, they are exponentially more likely to become a repeat customer for that product if they enjoyed it. Simple person-to-person sales floor conversations with someone I see browsing the Tequila/mezcal section helps win customers.”

Sparrow’s two stores each carry more than 100 Tequila and 40 mezcal SKUs. Top-sellers include Casamigos Blanco ($50 a 750-ml.), Don Julio Blanco ($50 a 750-ml), and Espolòn Blanco ($30). “The growth of Tequila’s popularity is driven by the consumer’s understanding that it’s a uniquely expressive spirit encapsulating the essence of the land it derives from, exactly how grapes do for wine,” Luis says. “As a result, the consumer has a whole library of flavors to discover. Word of mouth is powerful, and social media magnifies its power.” Mezcal sales at Sparrow are led by Banhez ($32 a 750-ml.), Dos Hombres ($60), and Quiéreme Mucho Espadín ($60).

Tequila and mezcal are now confronting possible tariffs that could slow their bull run. “A 10% tariff shouldn’t affect the market that much,” Moreno says. “If those tariffs go up to 25%, it would be detrimental to the fastest-growing spirits category. There are so many bars, restaurants, and liquor stores that have shifted over to or are focused on Tequila. The tariffs would hurt the economy, including a lot of small businesses such as myself.”

“Potentially tariffs may make the average consumer wait a little longer before buying a premium product, slowing down sales in the current $40-$60 range,” Luis adds.

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