Industry Report: Mezcal & Tequila
Agave reigns supreme
Dear Drink To That Reader,
Another week, another industry report to keep you informed of the trends that are defining different drink categories.
This week, it’s all about mezcal and tequila.
Del Maguey is the Don
According to a recent study from Drink International about the most popular mezcal brands, Pernod Ricard’s Del Maguey has been top dog for the last three years. In 2024, it was the house pour in 20% of the bars surveyed and a top-three best-selling mezcal in 53%.
Close on Del Maguey’s heels was Siete Misterios from the legendary Mestre family, who have been on a winning streak since partnering with the founder of Michter’s bourbon in 2021. It was the house pour in 16% of bars and a top-three serve in 49%.
The bronze medal went to Campari’s Montelobos, whereas Diageo’s Casamigos found itself towards the bottom of the top ten. However, George Clooney’s powerhouse brand has made history by being the first product to appear on both the best-selling tequila and mezcal lists in the same year.
The Chinese market is maturing
The US market has traditionally been the dominant place for agave spirits to take off and this oversaturation has made it hard for newer brands to get a foothold. However, the market for agave spirits has been steadily growing in China, with a group of boutique importers and distributors leading the charge.
A recent example of the category’s popularity is China had its first-ever agave spirits festival in 2024. This was done by founder Ray Heng, who brought together dozens of importers and distributors for a successful event.
As for why agave spirits are taking off in China, there could be a few reasons. Firstly, because Chinese culture celebrates high-ABV spirits like baijiu. Secondly, there is a huge middle class that has major buying power and will likely define the future of the category in China.
The smoke and mirrors of destilado de agave
Considering the success that celebrity-owned tequila brands have had over the years, there will always be those who want to cash in through backdoors or alternative takes. And so there are an increasing number of brands that are choosing to skip formal certification and label products as destilado de agave, meaning agave distillate.
This doesn’t necessarily mean that not labelling a product as tequila or mezcal has stopped a brand from being successful or that there are malicious intentions. The venerable Real Minero mezcal took the emotional step to quit labelling bottles as mezcal because they wanted to break free of an oppressive Mexican DO system that brings a heavy cost of certification and a limit to the types of agave that can be used.
Of course, there will be some cowboys out there looking to knock out cheap booze for an easy profit. But like everything in mezcal and tequila, there are two sides to every story and agave distillate brands are likely to keep on growing in the wake of shifting regulations.
Agave adaptogens
This is an interesting prediction from Tess Lampert over at the mezcal education website mezcalistas.com. She feels agave spirits could be sucked into the wellness trend of cultural ingredients that can be used to solve chronic health problems.
“As Western culture continues to obsess over so-called ‘adaptogens’ in a quest to find magical ingredients that can address a litany of chronic health issues, agave will have its moment in the spotlight. In particular, I expect to see ‘medicinal’ formulations that use an agave base - anything from tinctures and tonics to ‘vitamin’ dietary supplements.”
Premium and tequila go hand in hand
According to the recent Bacardi Global Brand Ambassador survey, tequila was unanimously ranked across regions as the number one premiuminisation category globally. 78% of respondents saw it as the top pick and here are some thoughts from various people as to why that is:
Gina Castillo Oghene, director of brand advocacy at El Tequileno has said “The premiumisation of the category has significantly increased consumer interest in the spirit as the public is more interested in consuming high-quality, craft tequila. Additionally, there’s a profound interest in Mexico’s heritage, and as tequila is so interwoven into Mexico’s history, it makes sense that so many people are drawn to the spirit.”
Natasha Sofia, the global advocacy director of Mijenta Tequila has explained tequila’s accessibility as a reason for its premium quality. “For whisky drinkers, they’ll find some familiar barrel notes in a reposado or anejo but with the added complexity of the agave. For vodka drinkers, a blanco or cristalino are both clear expressions, and as tequila has grown in popularity, I’m seeing more bars using tequila in cocktails that would ordinarily include a clear spirit like vodka or gin.”
What are your thoughts on these trends? Sound off by emailing me at infodrinktothat@gmail.com
Cheers to you,
Jamie