Tequila’s Growth Out-Pacing Vodka in the U.S. On Premise
Tequila continues to dominate growth in the US On Premise, CGA by Nielsen IQ finds. While Whiskey and Vodka continue to be the two dominant groups within Spirits, Tequila is the only Spirits subcategory that has achieved growth of share of over 1% - accounting for 18% of the Spirits category YTD, CGA reports.
The states where Tequila and Vodka are highest in consumption On Premise, in terms of volume, are California, Florida, Texas, New York and Ohio. However, California tops the list when it comes to Tequila, but moves to second place in favor of Florida when it comes to Vodka.
|
State |
Tequila volume share |
Vodka volume share |
|
California |
14% |
9% |
|
Florida |
12% |
14% |
|
Texas |
6% |
6% |
|
New York |
5% |
5% |
|
Ohio |
5% |
5% |
When it comes to the breakdown by state, Tequila in California has experienced a +24% higher change in volume growth versus a year ago when compared to Vodka. Tequila’s percentage growth was 17%, while Vodka experienced a drop in volume within California’s On Premise outlets of -7%. This performance isn’t limited to California, with Tequila also showing growth vs Vodka across Texas (+18%), New York (+17%), Florida (+16%) and Ohio (+14%).
Overall, Tequila’s highest growth in volume versus 2021 was in Florida, where it grew by +48%, followed closely by North Carolina at 44%. Vodka also saw significant growth in Florida (+32%), while Arizona (+24%) wasn’t far behind in terms of volume growth versus a year ago.
The growth of the Tequila category has been driven by increasing popularity with U.S. consumers, with the ubiquitous Margarita the most popular Cocktail by value velocity across 43 of the 48 U.S. states within the Cocktail read. While nearly 50% of Tequila drinkers prefer the spirit within a Cocktail, 42% opt for shots, and a fifth choose a “neat” pour.
Matthew Crompton, regional director – North America, said: “Over just the last 12 months we’ve seen Tequila significantly grow its share of the Spirits category, with a lot of that growth being driven by Cocktail serves and the popularity of the Margarita. However, to continue its growth, the category will need to innovate and explore new opportunities within serve style and price tiers – with premium tiers in particular showing significant growth.”