Tequila
We have an outstanding collection of world-leading tequila brands in our portfolio. Carefully crafted in Mexico from Agave Weber Blue Variety and enjoyed by consumers worldwide. Tequila is our third largest area of business globally, preceded by Scotch and beer.
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An opportunity for growth
The popularity of tequila is on the rise among consumers, representing a great opportunity to drive growth. In F23, our tequila net sales grew 19%, driven by Don Julio and Casamigos in North America, and we’re well positioned to bring this increasingly popular spirit to consumers worldwide.
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Blending art with science
Most of the liquid that makes up our iconic tequila brands comes from blue agave grown in the highlands of Jalisco, Mexico and surrounding areas. The production is a craft that balances art with science, and each bottle we sell has gone through a six-step process of cultivation and cutting, cooking, milling, fermentation, distillation, and maturation.
Are you familiar with the different types of 100% agave tequila?
Blanco - tequila in its purest form, clear and unaged
Reposado - aged up to one year in bourbon barrels
Añejo - aged up to two years in oak barrels
Extra Añejo - aged for three years or more in oak barrels
Joven - the result of mixing Blanco tequila with aged tequila
Investing for tomorrow
We see tequila as an opportunity to continue driving growth. To support future category expansion and drive sustainable growth, we’re investing in key areas.
Water, sanitation, and hygiene (WASH) and replenishment projects in Jalisco
- In F23, we launched a project to harvest rainwater through systems installed in 40 schools. These will provide drinking water to over 7,000 students in Jalisco.
- In F23, we built two wetlands with a capacity to replenish more than 268,000 m3 of water for communities in Jalisco, Mexico.
Building thriving communities
- In F23, Diageo and Don Julio partnered with authorities in Jalisco and different municipalities to support and extend efforts to prevent underage drinking.
- Through our brands, we’re present at in Los Altos every year to help promote positive drinking.
New technologies to drive efficiency in our operations
- We have introduced drones that can count the number of agave plants in a field and identify which plants need water. The drones are driving efficiency and ensuring the safety of our workers who used to manually spray the agave fields.
- Through new or upgraded biomass boilers in Mexico, tequila was the biggest contributor to reducing our Scope 1 and 2 carbon emissions in F23.
Improving water efficiency in our operations
- We will replenish over 100% of water used in our tequila operations by end of 2025.
- In F23, by identifying which agave plants need the pesticide and fertilizer water mix and how much, our drones contributed to water savings of close to 5.5 million liters.
- We have broken new ground on a wastewater treatment plant at our Atotonilco-Charcón site in Mexico, which will help deliver water efficiency improvements.
Digitalising our tequila supply chain
- We designed and implemented the first-ever digital planning tool on tequila-aged liquid.
- We introduced an advanced supply planning tool, which should enable us to drive end-to-end scenario planning and inventory optimisation.
New distilleries and facilities
- Following our 2021 investment to support growth in the tequila category, we spent £160 million in F23 on the construction of new facilities in Atotonilco and a new distillery in La Barca, Jalisco.
The first tequila to receive an ARA certification
In 2021, Don Julio Blanco tequila became the first tequila product to receive the Environmentally Responsible Agave (ARA) Certification from the Tequila Regulatory Council (CRT) and the Government of the State of Jalisco, Mexico. The certification assures consumers that the tequila they are drinking has been manufactured in an environmentally responsible and sustainable manner with no deforestation in the production process.
In 2022, Diageo and Don Julio were also granted the Bosque Urbano Award as recognition for being a company that doesn’t carry out deforestation to produce cardboard boxes.
Curious to learn more?
Investing in water preservation and sanitation in Mexico
We aim to replenish more than 100% of the water we use in our tequila operations by the end 2025.
Celebrating our 'Rural Women' in Jalisco
For International Day of Rural Women, we're celebrating the women in our tequila manufacturing process in Mexico.
Announcing regenerative agriculture programmes across Scotch whisky and tequila
The programmes will hope to drive holistic benefits including enhanced biodiversity, improved water stewardship, carbon reduction and better soil health management.