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Impact Databank: Luxury Tequilas Continue To Soar

March 2, 2020

U.S. consumers continue to gravitate to Tequila, with the category’s higher pricing tiers showing the fastest growth. After dodging the threat of higher tariffs last year with the signing of the new North America trade agreement USMCA, total Tequila shipments to the United States increased a robust 11% in volume terms in calendar 2019 to 22.7 million 9-liter cases, according to the Consejo Regulador del Tequila. 100%-blue agave exports to the U.S. largely propelled that progress, rising 12% in 2019 to more than 13 million cases, and comprised 58% of all Tequila imports last year.

Upscale Tequila brands (retailing at $40 and over a 750-ml.) have driven category growth in recent years and now account for nearly a quarter of total Tequila consumption in the U.S., according to Impact Databank. Bacardi-owned Patrón remains the largest-selling luxury-priced Tequila in the U.S. at 2.2 million cases in 2019, after surging 14% year-on-year. Bacardi recently named a new top marketer for the brand, Diageo veteran Kathy Parker, who will also lead marketing on Grey Goose vodka.

Meanwhile, two Diageo labels, Don Julio (+24%) and Casamigos (+35%) continued to drive rapid gains within the upscale segment last year. Don Julio is poised to cross the 1-million-case mark in the U.S. this year, while Casamigos is well within range of a half-million cases. Brown-Forman is also a player in Tequila’s luxury tier with its Herradura label, which crested 200,000 cases in 2019.

The U.S. is by far the world’s largest market for Tequila, accounting for nearly 83% of global Tequila exports last year, according to the Consejo Regulador del Tequila. Overall, Proximo Spirits’ Jose Cuervo is the top brand in the category, up 7% to 3.8 million cases in the U.S. in 2019, according to Impact Databank.—Natalia Razzo

Top Four Luxury Tequila Brands in the U.S.1
(thousands of 9-liter cases)
Rank Brand Company 2018 2019 Percent
Change2
1 Patrón3 The Patrón Spirits Co. (Bacardi) 1,897 2,162 14.0%
2 Don Julio Diageo North America 745 920 23.5%
3 Casamigos Casamigos Spirits Co. (Diageo) 333 450 35.0%
4 Herradura Brown-Forman 192 213 10.9%
Total Top Four4 3,167 3,745 18.2%
1 Over $40 a 750-ml.
2 Based on unrounded data
3 Includes Roca, Extra Anejo, Gran Patron, and Limited Edition
4 Addition of columns may not agree due to roundingSource: IMPACT DATABANK © 2020
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