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Tequila’s $25-$40 Tier Takes Off In The U.S.

June 28, 2021

While luxury Tequilas like Patrón, Don Julio, Casamigos, and Herradura continue to soar, brands priced in the $25-$40 super-premium tier just below them are also surging. According to Impact Databank, Tequila’s $25-$40 segment has averaged 16.5% annual growth since 2015—including a 31% jump last year—to near 4.7 million cases, representing about 23% of overall Tequila depletions and significantly outpacing total category growth.

Proximo Spirits’ 1800 remains the leader in the $25-$40 tier by a wide margin, topping 1.5 million cases after averaging 12.6% annual growth over the last five years. Last year, 1800 extended its offering higher up the pricing ladder with a Cristalino expression made from 100% blue agave and aged for 16 months in American and French oak before finishing for six months in Port barrels. The añejo Tequila is then filtered to remove the color imparted by the barrel.

Campari’s Espolòn is also a standout in the super-premium tier. The No.-6 Tequila brand in the United States overall leapt 50.6% to 768,000 cases last year to earn Impact “Hot Brand” honors, and it was the second most sold Tequila on Drizly between spring of 2020 and spring of 2021, according to senior marketing director Bernadette Knight. To encourage consumer experimentation, Espolòn launched its Blanco and Reposado expressions in 375-ml. bottle replicas of its 750-ml. bottle. “This size is perfect for trial and highly giftable, and so far the sales have performed beyond expectations,” Knight says. She adds that the brand plans to showcase its versatility with some new initiatives, which will roll out later this year.

One of Tequila’s most ambitious and promising newcomers is Teremana Tequila, founded by Dwayne “The Rock” Johnson and partners. Retailing at around $28, the brand depleted 230,000 cases in only a partial year on the market in 2020, and it shipped 400,000 cases in its first 12 months. “The reorder rate has been incredible as consumers have tried and loved the liquid,” says co-founder Jenna Fagnan. “Consumers today want to know more about where their spirits come from and care about what they are putting in their bodies. We are the first Tequila to put our nutritional facts right on the back label.”

Cazadores, part of the Bacardi portfolio, is also a player to watch in the $25-$40 segment, averaging 16% annual growth over the past half-decade to surpass 560,000 cases. This spring, Cazadores rolled out a new line of Tequila-based canned cocktails. Initially including Margarita, Spicy Margarita, and Paloma offerings, the range is made with Cazadores Blanco Tequila, with each 12-ounce can at 5.9% abv. It retails at $15 a 4-pack.

William Grant & Sons’ Milagro is also charging, up 19% to nearly 350,000 cases in 2020. Last year William Grant acquired a Mexican distillery to bolster Milagro’s production capacity. 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. “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,” said Jonathan Yusen, William Grant & Sons’ global chief officer, network distribution companies. “The quality of the liquid will continue to be at the heart of what we do.”

Leading Tequilas In The U.S. Retailing At $25-$40
(thousands of 9-liter cases)
Brand Importer 2019 2020 Percent
1800 Proximo Spirits 1,167 1,531 31.2%
Espolòn Campari America 510 768 50.6%
Cazadores Bacardi USA 492 561 14.2%
Altos Pernod Ricard USA 322 358 11.3%
Milagro William Grant & Sons 293 349 19.0%
Teremana Mast-Jagermeister US 230 +
Correlejo Infinium Spirits 167 197 17.9%
Gran Centenario Proximo Spirits 98 141 44.5%
Total Leading Brands2 3,048 4,136 35.7%
1 based on unrounded data
2 addition of columns may not agree due to roundingSource: IMPACT DATABANK © 2021
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