EXAMINING THE CHANGING LANDSCAPE OF THE TEQUILA CATEGORY
Despite tequila’s long history, painstaking craft process and strong identity as a symbol of national pride, the category has historically suffered from lower-quality perceptions from consumers. Associated with an array of sugary, slushy cocktails and consumption occasions based mainly around nightclubs and spring break trips. Lacking proper understanding and desire for the luxurious quality agave spirits have to offer.
This problem stemmed from a history of products that looked to deliver low prices, despite the time and resource-heavy process involved even just in creating the fundamental raw ingredient for tequila production – the agave. With brands often only using the minimum of 51% agave-sugar-based spirits to create products that could legally be called Tequila. Mixing with cheaper cane or corn sugar spirits to make up the volume. Leaving the experience of these ‘mixto tequilas’ as the only interaction many consumers had ever had with Tequila.
Thankfully this is no longer the case, with Tequila finally getting the respect it deserves and a strong trend of brands focusing on the use of 100% agave in production. It is now one of the fastest growing categories, alongside rum and whisky and predicted to experience a 67% growth in value between 2021 and 2026. Surpassing American whiskey in both value and volume in the US in 2023. Driven by booming demand from consumers and an influx of interest from people from different backgrounds looking to get in on the action, starting their own brands.
This has resulted in a market clamoring with a diverse selection of innovative mixing Tequilas and celebrity-backed brands like Teremana, 818, Casamigos and JAJA now coexisting with more traditional craft brands that have been around since the very beginning. Plus, an ever-growing list of outstanding bars in cities around the world which have specialized to serve exclusively agave-based spirits.
But with a limited number of ingredients, a very traditional core production process shared by all Tequilas and a lot of competition, brands have had to look for other ways to stand out.
This has resulted in some exceptionally creative designs and a fascinating variation in approach to brand activation strategy. As a creative agency, it’s a constant source of inspiration for how brands can push the boundaries of the identity of a spirit. Making Tequila a regular feature on our internal inspiration boards for projects involving packaging design, brand activation examples and visual identity work.
To share a little taster of this inspiration, we have for you our latest brand audit. Taking a look across this magnificently vibrant category to map out the many ways that brands have managed to differentiate themselves.
Within you’ll find examples of creative branding, innovative flavours, inspired collaborations, environmental missions and escapist events from the brands that have aligned themselves to the dynamic lifestyles of modern consumers. Versus a segment of the category that still hold onto a traditional approach, highlighting the history, heritage and proud craft that sits at the heart of Tequila-making. Holding their ground to capitalize on the premiumization trend we’re currently experiencing.
We hope that this audit will be as much of a source of inspiration for you as it has been for us to create. As a brand strategy agency with extensive experience and expertise within the drinks industry, we’re always looking for new and exciting challenges. So, if this has encouraged some new aspirations for you and your Tequila brand, please don’t hesitate to reach out!