Tequila has evolved beyond simply being an alcoholic beverage; we are witnessing a revolution in flavor profiles, where tequila houses are adopting more artisanal and modern approaches to distillation. From añejos in special barrels to blends of different tequila, each sip becomes a sensory journey beyond the traditional tequila experience.
The “premiumization” of tequila refers to a process by which this traditional beverage improves its quality, presentation, and overall perception to position itself in a more exclusive and higher-quality category. This phenomenon has taken tequila beyond its status as a standard alcoholic beverage, transforming it into a more refined and sophisticated experience.
Premium Agave Distilled Spirits Growth.
According to IWSR, in the first half of 2022, spirits in the premium+ price bands gained +6% in volume terms in H1 2021 and +13% in H1 2019.
Premium+ Agave-based spirits saw +16% growth in H1 2022 versus H1 2021; this follows +44% growth in H1 2020-21, much of this driven by the tequila category in the US.
Super-premium-plus agave spirits volumes are set to grow roughly twice as fast as whiskey between 2022 and 2027, meaning the agave spirits market at these prices will have increased fivefold in a decade.
Key elements associated with tequila premiumization:
1. Product Quality: Premiumization involves meticulous attention to the quality of ingredients and the production process. Premium tequilas are often distinguished by using high-quality agave, more refined distillation methods, and extended aging periods.
2. Exclusivity: Limited production and special editions are common characteristics of premium tequilas. This creates a sense of exclusivity and scarcity, raising the product’s perceived value.
3. Presentation: Bottles and packaging of premium tequilas are carefully designed and often reflect a luxurious and elegant look. This category’s distinctive elements are personalized labels, hand-numbered bottles, and unique packaging.
4. Terroir and Origin: Similar to the wine industry, the premiumization of tequila highlights the importance of terroir, i.e., the specific soil and climate conditions where the agaves are grown. Premium tequilas often come from particular regions that influence their unique flavor profiles.
5. Maturation: The maturation time in oak barrels is crucial in the premiumization of tequila. Aged and extra-aged tequilas, which have spent significant periods in barrels, develop complex flavors and a distinctive smoothness.
6. Tasting Experiences: Premium tequilas are often the basis for more sophisticated tasting experiences. Paired tastings, expert-led tastings, and exclusive events at distilleries contribute to the premium experience.
7. Collaborations and Marketing: Premium tequila brands often seek to partner with designers, artists, and other prominent names to create unique collaborations. In addition, marketing focuses on a more luxurious and exclusive lifestyle.
8. More informed consumer: Consumers seek and are willing to pay more for higher quality, exclusive, or distinctive products. In the specific case of tequila, premiumization has manifested itself through the growing demand for high-quality tequilas produced using traditional methods and with a focus on craftsmanship.
The premiumization of tequila has responded to growing consumer demand for high-quality products and more refined experiences. This phenomenon has changed the perception of tequila, positioning it as a sophisticated and versatile beverage that can be enjoyed in contexts beyond the traditional ones.
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