Tequila to continue growth in US on-premise

By Rachel Arthur

- Last updated on GMT

Pic:getty/instants
Pic:getty/instants

Related tags Tequila Us

Tequila holds an almost 16% of on-trade spirits sales in terms of volume: up significantly from 2016 when it had a 11.5% share, according to figures from CGA. And its popularity is set to continue to grow.

While still below stalwarts vodka (26.6%) and whiskey (26.4%), tequila is gradually stealing share from these categories.

The classic margarita has been ‘instrumental’ to the spirits expansion in the US on-premise, and is the preferred choice of many consumers – 49% of cocktail drinks choose the cocktail when out.

But tequila goes beyond the margarita: and many outlets have expanded their offering of tequilas to cater to consumer tastes. Silver Tequila holds the greatest volume share (52%) within the category and grew at 57% in the latest 52 weeks. However, subcategories such as Reposado (57% growth) and Gold (49% growth) are also becoming increasingly popular with consumers.

“One subcategory that has demonstrated significant growth is Anejo, increasing 61% over the last 52 weeks, highlighting that Tequila drinkers’ tastes in the US are expanding and evolving in a similar fashion to whiskey drinkers,”​ notes CGA.

One of the challenges for the category has been pressure on production and fears over shortages; but such production issues have now subsided, notes the company.

Patrick Bannon, CGA Client Director, Americas, said: “Tequila is no doubt a popular choice for consumers. It is important over the next period to see how this preference evolves and changes. It will be interesting to see whether the offering of different tequila types will expand further in outlet and tequila offerings will mirror that of whiskey. It’s crucial for suppliers and operators to understand where the different types will grow and what opportunities will present themselves in the on premise.”

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