Slowdown in Expensive Tequila

Is it game over for growth in expensive tequila brands?

Well, maybe NielsenIQ sales reports show that more than half of the growth in tequila sales in the past year are bottles priced between $20 and $30. And growth in the $30 to $40 range is also picking up.



On the other hand, bottles in the $40 to $50 range are responsible for just 10% of growth in the category, and that's compared to 36% a year ago.

Bottles in the $50 to $60 range are just 6% of growth, and tequilas above $60 are basically no growth in the last year compared to 5% the year prior. So there's two possible explanations for this data, both are probably true. First, the number of people who are going to pay $50 or more for a bottle of tequila is finite, and it's not likely to grow significantly over time, especially with so much solid tequila available for less.

Second, most of the overall growth of tequila is not people drinking it straight, but in newer cocktails like Palomas and Ranch Waters, where you probably don't need to mix it with an $80 tequila anyway. What about you? How have your tequila purchase habits changed?

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