Diageo CEO: Tequila growth ‘steady, not explosive’ outside the US

Diageo CEO: Tequila growth ‘steady, not explosive’ outside the US

twenty ninth July, 2021 by Kate Malczewski

After delivering a ‘robust efficiency’ throughout its Tequila manufacturers, Diageo has forecast constant progress for the agave spirit in markets exterior the US and Mexico.

Casamigos George Clooney and Rande Gerber

Diageo’s Casamigos model, co-founded by actor George Clooney, contributed to the agency’s spectacular Tequila gross sales in fiscal 2021

The drinks big noticed its Tequila gross sales soar 79% in its 2021 fiscal year, following the class’s robust progress of 25% in an otherwise difficult fiscal 2020.

Tequila was significantly essential to the agency’s North American enterprise, led by high-end merchandise; añejo expression Don Julio 1942 has turn into the biggest prestige-and-above model within the US by quantity and internet gross sales worth, the enterprise reported.

Talking on the agency’s full-year outcomes press briefing, CEO Ivan Menezes mentioned he expects Tequila’s progress to be “regular”, “not explosive”, in markets past North America.

“The development is choosing up exterior the US and Mexico, however it will likely be slower,” he defined. “You see it in top-end bars in every single place… We do anticipate it to develop, particularly on the premium finish.”

The agave spirit accounted for 8% of Diageo’s internet gross sales in fiscal 2021, boosted by its Don Julio and Casamigos manufacturers – the latter of which hit the million-case-selling mark for the primary time final 12 months.

Menezes mentioned Tequila advantages from an affiliation with well being and wellness – one among “4 large traits taking place in most components of the world”. He additionally recognized premiumisation, a “willingness to spend cash in lower-tempo events” and comfort as traits to observe.

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