On-premise tequila sales were up 23% in the latest 52 weeks on-premise compared to last year, and 7% off-premise, according to new data from NIQ. Those are the types of indicators that inspired a deep dive into the category during a presentation last week on growth drivers in the alcohol industry by NIQ’s beverage alcohol experts. Here are four of the factors behind the rise of agave spirits.
Celebrity Spirits
The seemingly non-stop parade of celebrity tequilas is unlikely to slow down, as consumers are still drawn to brands backed by familiar names in entertainment. Within a group of 26 leading celebrity tequila brands that the agency is tracking, growth is up 22% in off-premise dollar sales from last year, rivaling numbers of the overall category. Celebrities are also luring consumers into new categories: 82% of consumers influenced by celebrity owned or endorsed brands agree they would try a category they don’t normally drink if they like the celebrity.
Beyond the Well
“We’ve seen other trend changes in beer, wine and spirits in the past 20 years and so many of them have been volume oriented,” said Jon Berg, vice president of thought leadership of BevAl at NielsenIQ. “What’s fascinating about this kind of growth is that it’s definitely value orientated.”
Consumers aren’t just trading up to sip tequila – they’re adding high-end tequilas to their margaritas. Premium-plus brands are gaining traction at bars and restaurants at the expense of value and mid-tier segments.
“It’s likely given the share shifts that premium, super premium and ultra premium tequilas are more likely being used in those cocktails and the margaritas more on-premise than they have in the past,” said Kaleigh Theriault, a thought leadership manager at NIQ.
Those trends align with off-premise numbers: ultra tequila (+$50) picked up 11% of the category’s share in dollars over the past four years.
A Party Drink
Tequila’s growth in bars and nightclubs is almost double compared to overall spirits last year. Sales clocked in at $38 billion in the last 52 weeks, up 32% over the same period in 2021. When analyzing on-premise data, during the time periods from 10 p.m. to closing at bars and restaurants, tequila overtakes vodka as the second most valuable spirit. The popularity of tequila shots has also increased since 2019 across all age groups.
Clear the Way for Cristalino
“Cristalino is an important element that I think consumers are going to gravitate towards,” said Berg.
While the segment represents only 3% of the overall category, Berg added that its growth is impressive. Tequila añejo represents a 13% share in dollars of total tequila, up 2% from a year ago. Cristalino, a style of aged tequila that has been filtered to remove the colors of the aging process, represents 19% of the dollar share of tequila añejo, up 30% since last year.