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Tequila could overtake vodka as America’s top liquor as sales boom


A worker pours tequila to the Mountain Dew Baja Blast frozen drinks at Taco Bell Cantina Brookline MA.

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Vodka could be overtaken by Tequila as America’s preferred liquor. This is due to consumers’ demand for high-end agave spirits.

The second fastest growing spirit category was mezcal and tequila in 2021. trailing only premixed cocktails. The sales of Agave-based spirits increased 30.1% to $5.2 billion in the past year according to data from the Distilled Spirits Council.

The second-largest revenue category behind No. The number one selling spirit in America since 1970s has been vodka. Vodka is still worth $7.3 billion and sells more than tequila or mezcal each year. However, it could soon be outsold by agave spirits in just a few short years.

Casinos are a great place to see the evidence for this trend. Julian Cox is a renowned bartender, executive director of beverages and corporate mixologist. MGM Resorts InternationalAccording to the report, total vodka and tequila sales are at an all-time high at this hospitality company.

“Nobody could have believed it,” he stated.

Vodka is still the king of volume. According to DISCUS in 2021 vodka sold 78.1 millions cases, which is more than twice the volume of premixed cocktails. At 26.8million cases each, mezcal and Tequila came in a distant fourth.

Christine LoCascio is the chief of policy at DISCUS. She says high-end tequilas have helped drive category growth.

LoCascio stated that it’s more than just margaritas at Thursday’s trade association’s annual economic briefing. There are many high-end Tequilas you can drink and enjoy like high-end whiskeys and cognacs.

DiageoThe company’s CEO, Ivan Menezes, echoed this sentiment during its recent earnings conference. Casamigos, Don Julio, and Casamigos are the two most prestigious brands of tequila owned by the distiller.

He stated that “the category’s appeal across all demographics is substantial.” The trend has crossed over. It is very evident that multiculturalism has been growing strongly. It is not limited to certain age categories, or gender, but it also cuts across the dayparts of the day, as well as the time and nature of the drinks. This is not the same shot and margaritas it was many years back.

Crown Royal’s owner predicts that Tequila sales will grow faster than other spirits industries over the next 5-10 years. The Crown Royal saw an increase in sales of tequila by 56% during its first half fiscal 2022.

Also, Tequila helps the spirit industry to get customers away from beer. Tony Abou-Ganim was a celebrity mixologist, author of Vodka Distilled, and created both the T-Mobile Arena’s beverage program and Allegiant Stadium’s. Margaritas are available at the sports venues, which feature fresh ingredients and 100 percent agave Tequila.

People think that going to an arena is just about drinking beer. We felt, however, that people would buy margaritas if there was a better margarita. Abou Ganim confirmed that it was true.

DISCUS’s LoCascio acknowledged, too that celebrity launches have increased attention to this category.

Many celebrities have started their own brands of tequila or mezcal, including actor Dwayne Johns and Kendall Jenner. They’re also jumping on the agave bandwagon and hoping to replicate the success of George Clooney’s Casamigos Tequila. It was sold to Diageo in 2017 for $1 billion. In 2017, Constellation BrandsInvested in “Breaking Bad” co-stars Aaron Paul and Bryan Cranston’s Dos Hombres mezcalAn undisclosed sum

Potential growth of Mezcal

The blue agave plant is responsible for 98% (or $5.2 billion) of the agave-based spirits’ $5.2 million sales. Mezcal refers to any spirit that is made from dozens or more types of agave.

“[Mezcal]LoCascio indicated that the number of people who are able to afford it is increasing, although they still make up a small percentage of this larger group.

MGM’s Cox, who cites the many flavors and tastes of mezcal as reasons for optimism about the future of the product, is supportive of MGM. He said that mezcal was like a flavour bomb. For cocktail-making, it’s a great choice if used in the correct medium.

Julian Cox

Source: MGM Resorts International

After consumers have tried cocktails with mezcal, category promoters can introduce them to spirit made from all types of agave.

Abou-Ganim stated that younger people are the ones leading this charge and eager to explore new tastes. The growth of mezcal is also affected by geography. Cox was previously in Los Angeles, but is now based in Las Vegas. He said that most Sin City visitors are not well-informed about mezcal.

Mezcal is considered authentic to its traditions and roots, which appeals to purists such as Cox and Abou–Ganim. Mexico has regulations that limit the production of mezcal by distillers. The United States can sell uncertified products labeled “agave spirits” in their country.

Abou Ganim said, “They can’t make a lot mezcal. And that’s the beauty of it.”