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William Grant & Sons’ Milagro Surging In The Super-Premium Tequila Segment

August 15, 2022

Super-premium Tequilas (priced $25-$40 a 750-ml.) continue to surge forward and show some of the most dynamic growth within the entire category. William Grant & Sons’ Milagro has been among the key brands driving the super-premium tier, leaping 43% to just under a half-million cases last year, according to Impact Databank, to earn “Hot Brand” honors.

So far in 2022, William Grant & Sons U.S. president and managing director Paul Basford tells SND that the brand continues to see ample runway. “Our performance so far in 2022 has continued to track upward, and we can report depletions are up 25% through end of June and the brand is growing share in Nielsen, NABCA, and on-premise channels,” he says.

Looking ahead, Basford sees continued growth potential, due to growing category interest, driven in part by new Tequila-based RTD cocktails and seltzers steadily hitting the market. “We’re using this momentum to our advantage and forecast a doubling in size of business,” he says. “We see a strong runway for Milagro, particularly within aged variants and sipping occasions as consumers move beyond Silver.”

Basford adds that the company is weathering supply challenges as well as it can and is placing its focus on maintaining inventory amid the rising interest in the brand. “We have a plan in place to ensure stock challenges we’ve faced in 2022 are significantly improved next year,” he says.

Among the main growth markets for Milagro are “Florida, California, and particularly Michigan, where we’ve seen explosive growth driven by a trend for aged, sipping Tequilas amongst consumers in Detroit,” Basford notes. “According to NABCA, Milagro Reposado is the No.-1 Reposado in the state.”

As consumers reach for aged and higher-priced Tequilas, Milagro is leveraging its Select range, retailing in the growing above-$40 luxury tier (in 2021, luxury Tequilas grew 19% in the U.S. to just over 6 million cases). “The Tequila category continues to premiumize with more aged offerings like extra Añejo, innovations, or with different barrel types used during maturation,” Basford says. “While our core line still strongly resonates with consumers due to its accessible price point, our Select range had a record 2021 as we saw a steady increase in consumers looking to trade up.”—Shane English

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