Tequila continues to gain share from other spirits in U.S. bars and restaurants, according to NIQ’s on-premise marketing research arm CGA.
Tequila sales by value rose by 0.7% in the 12 months through the end of February, despite a 1.7% drop in volumes. Sales were driven by a 6.7% rise in distribution points as well as demand for higher-end tiers.
“However, the contraction in volumes shows loyalty can’t be taken for granted, and economic concerns make consistent delivery of both value and quality essential,” read the report.
Pricing was up 2.4% in the 52 weeks ending February 22, compared to the same period as last year, with rate of sale down nearly 8%.
Tequila showcased the strongest performance among all spirits categories, commanding 23.5% of all on-premise spirits sales volumes, up 0.8 percentage points year-over-year after taking share from other spirits categories.
Despite pressures on consumer spending, there was a high demand for premium and ultra tiers, up 0.9 and 1.4 percentage points respectively of total tequila share over the 12 months. Premium (28%) and mid-range (21.2%) still make up the largest share of volume with super premium-plus close behind (20.5%).
Reposado tequila has been on a roll, gaining 2 percentage points of share (total of 16.7%) at the expense of blanco and gold especial (19.9%), which lost 1.5 and 0.9 percentage points respectively. Still, the margarita’s favorite addition, blanco, remains the top tequila type, with well over half of total volumes.
Growth for reposado is trending across the county, with sharp rises seen in several states including Florida and New York, adding 3.3 percentage points of share in each.