Taking tequila around the world

01 Aug 2024 ESGPerformance
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Our global rollout of tequila continued at pace in fiscal 24, underpinned by strong commercial execution.

Our global rollout of tequila continued at pace in fiscal 24, underpinned by strong commercial execution.

Early bets on tequila are paying off

Diageo’s portfolio is positioned towards fast-growing categories and tequila is the fastest growing spirits category (+9% RSV 2022-2023). Diageo was among the early entrants into the space and continues to be the global leader in tequila with around a quarter of value share.(2)

In NAM, our tequila portfolio grew US spirits share, driven by Don Julio, which increased momentum in the second half, growing 15 times faster than the total US spirits industry and gaining category share of tequila and spirits.(3) Spearheading this growth was Don Julio Reposado, where we increased investment and expanded distribution to capitalise on the increasing popularity of aged tequila, as consumers rapidly become more knowledgeable about the category.

We drove almost 12% organic net sales growth in markets outside NAM and LAC, leading to substantial market share gains across Europe, APAC and Global Travel. Don Julio was the number one selling tequila at London Heathrow Airport throughout most of the fiscal and is now available in nearly 60 countries. Casamigos is now in 33 countries and continues to recruit across Europe. This summer, we have plans for over one million consumers to sample the Casa Paloma in Great Britain. Increased investment in these brands to support their global rollout is amplified by our excellent marketing brand building at scale, for example, Don Julio at the Oscars and the Super Bowl.

In APAC, we have tapped into the demand for luxury products, positioning Don Julio 1942 as our flagship. It has entered the most aspirational on-trade venues, allowing us to deliver high-quality activations, in partnership with influencers.

The Paloma

This fiscal year, we identified the Paloma cocktail as a vehicle to recruit consumers into the tequila category. Our consumer insights showed the Paloma was emerging as the cocktail of choice for bartenders and brand ambassadors, particularly in Southern Europe. The Paloma is a grapefruit-based, refreshing visually appealing premium aperitif: a big glass, vibrant colour, and lots of flavour. The Paloma is also an accessible way for consumers to discover tequila: it is light, easy to make, and fits beautifully into various occasions whether consumers are at home, in a bar, or enjoying it with food.

(1) World Bank.
(2) IWSR, 2023.
(3) Nielsen/NABCA, 2024