SND: What key trends are you watching across the Tequila category?

Otegui: The U.S. Tequila market is entering a new phase of growth, shaped by a consumer base increasingly interested in transparency and education. Over the next few years, we expect Tequila to continue its evolution from being primarily a party shot to being appreciated as the complex spirit that it is. We expect to see continued growth in our Reposados and Cristalinos, lower-abv options, ready-to-serve cocktails, and flavored Tequilas, as these continue to drive trends among the Gen Z consumer base. Jose Cuervo Authentic Margaritas are the top-selling brand in the ready-to-serve segment and continue to appeal to a broad audience for their approachable and diverse flavor profiles.

Cristalino Tequilas continue to gain popularity since the category was created by (Cuervo CEO) Juan Domingo Beckmann in Mexico in 2008 with the release of Maestro Dobel Diamante Cristalino. Cristalino appeals to people looking for a smooth, complex, and versatile spirit for cocktails or sipping, which is an increasing number of consumers, combining the best of aged and unaged Tequilas.

Consumers are also asking more questions about how their Tequila is made and the environmental impact of production. At Proximo, we’ve made significant investments in sustainable practices, including being one of the few distilleries to own our own stillage treatment plants and our launch of The Agave Project in 2019, which repurposes 100% of our agave byproduct.

SND: Recently there’s been a vigorous debate about Tequila and additives. What’s your view of the situation?

Otegui: Since receiving the first license to distill 11 generations ago, we’ve been making our 100% agave blanco Tequilas the same way for decades, using only three ingredients—water, yeast, and agave.

That said, the current additive-free narrative is misleading to consumers. Additives are enhancers that create consistency and standardization and have been used by other spirits categories for decades. There is an outsized focus on additives in Tequila that is unfair to the category. We believe that if there is a focus on talking about the permitted use of additives in Tequila, we should also acknowledge how this is a standardized practice in spirits production as a whole, while educating consumers about their uses and that they are not harmful, nor do they substitute for the aging of high-quality agave.

Furthermore, some brands claiming to be additive-free often lack access to the rigorous testing facilities needed to verify this or use third-party suppliers to make their Tequila, and cannot be sure what is going into their product from batch to batch.

Rather than focus on additives, we believe there are more pressing challenges facing our industry, specifically concerning agriculture, water, and human economic levels. As the oldest Tequila company and first farmers of agave, it is our mission to protect the category, the people, and the land that are Tequila’s foundation. We will continue to advocate for these issues to protect the viability of the category for generations to come.