Overview:The Tequila sector is undergoing significant changes as consumers become increasingly price-conscious. Brands are reassessing their pricing strategies and focusing on core ranges and accessible premium tiers to drive growth in the market.
The Full Story
For much of the past decade, Tequila’s growth story has been driven by premiumisation. Super-premium and ultra-luxury expressions proliferated as consumers traded up, collectors chased rarity, and producers rushed to stake claims at the top end of the category. However, with economic pressures biting and Tequila maturing in key markets, the category’s growth trajectory is evolving.
Today, brands are refocusing on core ranges and accessible premium tiers rather than racing ever higher on price. This shift towards rebalancing is driven by consumers who want to enjoy quality liquid at wallet-friendly prices. According to Proximo Spirits, owner of category giant José Cuervo, this trend is not a slowdown but a recalibration.
“Consumers are still looking to buy better Tequila and learn more about the category,” says Lander Otegui, executive vice-president of marketing and innovation at Proximo Spirits. “But there’s less appetite to overspend on brands priced at US$100 and above.”
Production & Profile
The shift towards accessible premium tiers is evident in various Tequila brands’ strategies. El Rayo Tequila, for instance, was deliberately built in an accessible premium space – not as a response to recent downtrading but as a founding principle.
“We position ourselves in an accessible premium tier, sitting around the mid-£30 price point,” says Tom Bishop, co-founder of El Rayo. “From the start, the idea was to attract people who wouldn’t normally drink Tequila – particularly jaded gin consumers looking for something different.”
Brand & Industry History
The history of Tequila’s premiumisation is a story of innovation and expansion. Brands like José Cuervo and Diageo’s Astral have driven growth in the category, but with this success comes challenges.
“The high-end expressions took focus away from the core range,” admits Santiago Cortina Gallardo, CEO and co-founder of Volcan de mi Tierra. “As the market normalises, we’re once again prioritising our blanco and reposado.”
What This Means
The Tequila sector’s evolution has significant implications for brands and consumers alike. Brands must adapt to changing consumer preferences by focusing on core ranges and accessible premium tiers.
“The pandemic fundamentally changed consumer behaviour,” says Gareth Williams, global sales and brand director at Pantalones Organic Tequila. “Retail and e-commerce are no longer secondary channels – they’re critical growth drivers.”
Consumer Takeaway
The shift towards accessible premium tiers offers consumers a wider range of options for enjoying quality Tequila without breaking the bank.
“Consumers want reassurance that what they’re buying is well made and thoughtfully produced, without feeling like they’re paying for hype,” says Williams. “We’re premium, award-winning, organic – and approachable.”
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