Exclusive: William Grant & Sons Acquires Mexico Distillery, As Milagro Tequila Accelerates

William Grant & Sons is bolstering its position in Tequila and other agave spirits with the acquisition of a distillery in Mexico, aimed at supporting the growth of its Milagro label in the coming years. Based in Cienega in the Highlands region of Jalisco, the site has previously been known as Productos Regionales de Atotonilco, although William Grant & Sons will rename it moving forward. Financial details weren’t disclosed, but Grant noted that the purchase is part of a “multi-million pound investment plan to build its brands globally and upgrade its infrastructure to support its growth ambitions.”

“Today, the distillery is able to produce approximately 30% of what we will require, so in the short-term we will continue to oversee Milagro production at our distilling partners’ sites to ensure continuity of supply,” Jonathan Yusen, president and managing director of William Grant & Sons Americas, told SND. “With the growth of Milagro and of the broader Tequila category, our focus now shifts to expanding the site in preparation of our future needs. The quality of the liquid will continue to be at the heart of what we do.” The newly acquired distillery will produce exclusively for William Grant & Sons brands, without undertaking any contract production.

According to Impact Databank, Milagro grew 5.2% to 295,000 cases in the U.S. last year. Since 2015, the brand’s depletions have averaged annual gains of 11%, with price hikes attributable to the agave shortage slowing the pace slightly last year. This year, the brand has picked up speed. “2020 has seen accelerated consumer interest in the premium Tequila category, with Nielsen markets showing retail growth of over 30% over the last quarter alone, and with Milagro outpacing the category with almost 50% retail growth,” Yusen noted.

William Grant & Sons CEO Simon Hunt added that the distillery purchase provides “a strong platform for further innovation that will help us take full advantage of global opportunities in the fast-growing premium Tequila category.”

In recent days, William Grant & Sons relaunched Milagro Select Barrel Reserve, the brand’s luxury-priced tier. The full line—Blanco ($40), Reposado ($45), and Añejo ($55)—is returning to market in new bottles inspired by Mexican architectural works and featuring an engraved agave plant and colors specific to each release.—Daniel Marsteller

Tagged : Milagro, William Grant & Sons

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