Global market review of Tequila – forecasts to 2014
Transcript of Global market review of Tequila – forecasts to 2014
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© 2010 All content copyright Aroq Ltd and The IWSR. All rights reserved.
Global market review of Tequila –
forecasts to 2014
2010 edition
January 2010
By The IWSR’s Alex Smith and Laura Tovey
Contributors: Jose Hermoso, Alastair Smith, Piotr Poznański, Agata
Andrzejczak, Thalia Fourie, Humphrey Serjeantson and Helen Windle
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Page iv Table of contents
© 2010 All content copyright Aroq Ltd and The IWSR. All rights reserved.
Table of contents
Single-user licence edition .......................................................................................................... ii
Copyright statement ............................................................................................................... ii Incredible ROI for your budget – single and multi-user licences ............................................. ii
just-drinks.com membership .................................................................................................. iii
Table of contents ........................................................................................................................ iv
List of tables ............................................................................................................................... vi
Notes about the data .................................................................................................................. ix
Terminology .......................................................................................................................... ix
Chapter 1 Executive summary .................................................................................................... 1
Chapter 2 Scope of the market ................................................................................................... 4
Narrow market ....................................................................................................................... 7
Premium potential outside of the US ...................................................................................... 7 Industry structure ................................................................................................................... 8 Market issues ....................................................................................................................... 10
Tequila usage becoming more diverse ........................................................................ 10 Contraction of on-trade and RTD innovation ................................................................ 11
Supply and demand ..................................................................................................... 12
Chapter 3 The markets .............................................................................................................. 15
United States ....................................................................................................................... 15 Price fighting ................................................................................................................ 17 Market polarises .......................................................................................................... 18 Important Mexican demographic .................................................................................. 22
Mexico ................................................................................................................................. 23 Canada ................................................................................................................................ 27 Brazil ................................................................................................................................... 29 Colombia ............................................................................................................................. 30 Germany .............................................................................................................................. 31
Russian Federation .............................................................................................................. 33 France ................................................................................................................................. 34 Greece ................................................................................................................................. 36
Italy ...................................................................................................................................... 39 Czech Republic .................................................................................................................... 41 Spain ................................................................................................................................... 43 Japan ................................................................................................................................... 45
Australia ............................................................................................................................... 46 South Africa ......................................................................................................................... 48 Travel retail .......................................................................................................................... 49 Other markets ...................................................................................................................... 52
Page v Table of contents
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Chapter 4 The companies ......................................................................................................... 55
Cuervo ................................................................................................................................. 55 Diageo ................................................................................................................................. 56
Beam Global (Sauza) ........................................................................................................... 56 Patrón .................................................................................................................................. 58 Brown-Forman (Herradura) .................................................................................................. 60 Bacardi ................................................................................................................................ 62
Appendix: History and product characteristics ....................................................................... 64
Mezcal exports are rising ..................................................................................................... 66 Tequila regulations ............................................................................................................... 67 Bottling controversy ............................................................................................................. 68
Page vi List of tables
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List of tables
Table 1: World Tequila sales by total volume consumption – world total and by major market,
2004-2014 (‘000s nine-litre cases) ........................................................................... 5
Table 2: Top ten Tequila brands in United States by total sales volume, 2003-2008 (‘000s nine-litre
cases) .................................................................................................................... 15
Table 3: Top five Tequila brand owners in United States by total sales volume, 2003-2008 (‘000s
nine-litre cases) ..................................................................................................... 19
Table 4: Top ten Tequila brands in Mexico by total sales volume, 2003-2008 (‘000s nine-litre
cases) .................................................................................................................... 24
Table 5: Top five Tequila brand owners in Mexico by total sales volume, 2003-2008 (‘000s nine-
litre cases) ............................................................................................................. 26
Table 6: Top ten Tequila brands in Canada by total sales volume, 2003-2008 (‘000s nine-litre
cases) .................................................................................................................... 28
Table 7: Top five Tequila brand owners in Canada by total sales volume, 2003-2008 (‘000s nine-
litre cases) ............................................................................................................. 28
Table 8: Top eight Tequila brands in Brazil by total sales volume, 2003-2008 (‘000s nine-litre
cases) .................................................................................................................... 29
Table 9: Top five Tequila brand owners in Brazil by total sales volume, 2003-2008 (‘000s nine-litre
cases) .................................................................................................................... 30
Table 10: Top eight Tequila brands in Colombia by total sales volume, 2003-2008 (‘000s nine-litre
cases) .................................................................................................................... 31
Table 11: Top eight Tequila brands in Germany by total sales volume, 2003-2008 (‘000s nine-litre
cases) .................................................................................................................... 32
Table 12: Top five Tequila brand owners in Germany by total sales volume, 2003-2008 (‘000s
nine-litre cases) ..................................................................................................... 32
Table 13: Top ten Tequila brands in Russia by total sales volume, 2003-2008 (‘000s nine-litre
cases) .................................................................................................................... 33
Table 14: Top five Tequila brand owners in Russia by total sales volume, 2003-2008 (‘000s nine-
litre cases) ............................................................................................................. 34
Table 15: Top ten Tequila brands in France by total sales volume, 2003-2008 (‘000s nine-litre
cases) .................................................................................................................... 35
Page vii List of tables
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Table 16: Top five Tequila brand owners in France by total sales volume, 2003-2008 (‘000s nine-
litre cases) ............................................................................................................. 36
Table 17: Top ten Tequila brands in Greece by total sales volume, 2003-2008 (‘000s nine-litre
cases) .................................................................................................................... 36
Table 18: Top five Tequila brand owners in Greece by total sales volume, 2003-2008 (‘000s nine-
litre cases) ............................................................................................................. 37
Table 19: Top five Tequila brands in the United Kingdom by total sales volume, 2003-2008 (‘000s
nine-litre cases) ..................................................................................................... 38
Table 20: Top five Tequila brand owners in the United Kingdom by total sales volume, 2003-2008
(‘000s nine-litre cases) ........................................................................................... 39
Table 21: Top ten Tequila brands in Italy by total sales volume, 2003-2008 (‘000s nine-litre cases)
.............................................................................................................................. 40
Table 22: Top six Tequila brand owners in Italy by total sales volume, 2003-2008 (‘000s nine-litre
cases) .................................................................................................................... 41
Table 23: Top ten Tequila brands in Czech Republic by total sales volume, 2003-2008 (‘000s nine-
litre cases) ............................................................................................................. 42
Table 24: Top five Tequila brand owners in Czech Republic by total sales volume, 2003-2008
(‘000s nine-litre cases) ........................................................................................... 43
Table 25: Top ten Tequila brands in Spain by total sales volume, 2003-2008 (‘000s nine-litre
cases) .................................................................................................................... 43
Table 26: Top five Tequila brand owners in Spain by total sales volume, 2003-2008 (‘000s nine-
litre cases) ............................................................................................................. 44
Table 27: Top ten Tequila brands in Japan by total sales volume, 2003-2008 (‘000s nine-litre
cases) .................................................................................................................... 45
Table 28: Top five Tequila brand owners in Japan by total sales volume, 2003-2008 (‘000s nine-
litre cases) ............................................................................................................. 46
Table 29: Top ten Tequila brands in Australia by total sales volume, 2003-2008 (‘000s nine-litre
cases) .................................................................................................................... 46
Table 30: Top five Tequila brand owners in Australia by total sales volume, 2003-2008 (‘000s nine-
litre cases) ............................................................................................................. 47
Table 31: Top five Tequila brands in South Africa by total sales volume, 2003-2008 (‘000s nine-
litre cases) ............................................................................................................. 48
Table 32: Top five Tequila brand owners in South Africa by total sales volume, 2003-2008 (‘000s
nine-litre cases) ..................................................................................................... 48
Page viii List of tables
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Table 33: Top ten Tequila brands in travel retail by total sales volume, 2003-2008 (‘000s nine-litre
cases) .................................................................................................................... 49
Table 34: Top five Tequila brand owners in travel retail by total sales volume, 2003-2008 (‘000s
nine-litre cases) ..................................................................................................... 51
Table 35: Top seven Tequila brands in Austria by total sales volume, 2003-2008 (‘000s nine-litre
cases) .................................................................................................................... 52
Table 36: Top five Tequila brand owners in Austria by total sales volume, 2003-2008 (‘000s nine-
litre cases) ............................................................................................................. 52
Table 37: Top eight Tequila brands in Chile by total sales volume, 2003-2008 (‘000s nine-litre
cases) .................................................................................................................... 53
Table 38: Top six Tequila brand owners in Chile by total sales volume, 2003-2008 (‘000s nine-litre
cases) .................................................................................................................... 53
Table 39: Top eight Tequila brands in South Korea by total sales volume, 2003-2008 (‘000s nine-
litre cases) ............................................................................................................. 54
Table 40: Top five Tequila brand owners in South Korea by total sales volume, 2003-2008 (‘000s
nine-litre cases) ..................................................................................................... 54
Table 41: Top five Tequila brand owners in Turkey by total sales volume, 2003-2008 (‘000s nine-
litre cases) ............................................................................................................. 54
Page ix Notes about the data
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Notes about the data
Where ‘-’ or a blank table cell appears in The IWSR data tables, this indicates
no sales recorded by The IWSR. When ‘0.0’ precedes ‘-’ in previous years, this
indicates that the brand had not yet been launched in the year(s). There may
be some cases where low sales are registered as ‘0.0’ due to rounding. Low
sales may also be recorded as ‘Min’ to signify minimum sales.
Unless otherwise specified, all data quoted in this report refers to 2008 market
data.
When ‘cases’ are quoted, these refer to nine-litre cases unless otherwise
specified
Data in tables does not include figures for travel retail. Data may not sum due
to rounding.
Unless otherwise stated, figures include mezcal. Recorded sales are almost
entirely in Mexico, and reach 618,500 cases or 7.8% of the total Mexican
Tequila market.
Terminology
CAGR: compound annual growth rate
A&P: advertising and promotions
NPD: new product development
Page 4 Chapter 2 Scope of the market
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Chapter 2 Scope of the market
Tequila has been displaying high volume growth across a broad spectrum of
international markets. Between 2003 and 2008, Tequila displayed a compound
annual growth rate (CAGR) of xxx% to reach xxxxxm nine -litre cases,
according to The IW SR. This represents an increase of around xxxxm cases
over the period.
Preliminary indications are that this growth slowed in 2009 due to the global
economic crisis.
That growth has been im pressively broad -based. Som e xx out of the top xx
global Tequila markets (including travel retail) posted CAGR gains over the
2004-2008 period.
While the potential for international development is vast, the volume will
remain centred in the US and Mexico for the foreseeable future. Those two
m ark ets today account for xxxx% of global Tequila volum e. The gulf between
the US and Mexican m ark ets (at around xxxxxm and xxxxm cases
respectively), and the third -largest m ark et – Germ any at xxxxxxx cases – is
vast.
Nevertheless, there are green shoots of growth in many markets, even in the
midst of recession. Russia, Greece, Canada, Japan, South Africa and Brazil
are all experiencing strong growth in percentage terms, albeit from small
bases.
Page 15 Chapter 3 The markets
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Chapter 3 The markets
United States
The US Tequila m ark et grew in 2008 by an estim ated xxx% to reach xxxxm
nine-litre cases, a rise of xxxxxxx cases. This was below the previous five - year
trend, which had seen cons istent annual rises equivalent to x% per year.
Table 2: Top ten Tequila brands in United States by total sales volume, 2003-2008 (‘000s
nine-litre cases)
Brand vol2003 vol2004 vol2005 vol2006 vol2007 vol2008
Cuervo Tequila xxxxxxx xxxxxxx xxxxxxx xxxxxx xxxxxxx xxxxxxx
Patron xxxxx xxxxx xxxxx xxxxxxx xxxxxx xxxxxxx
Sauza xxxxxxx xxxxxxx xxxxxxx xxxxxx xxxxxx xxxxxxx
Montezuma Tequila
xxxxx xxxxx xxxxx xxxxx xxxxx xxxxxx
Juarez xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx
1800 Tequila xxxxx xxxxx xxxxx xxxxx xxxxx xxxxxxxxxxxx
Don Julio Tequila
xxxx xxxx xxxx xxxxx xxxxx xxxxx
Cazadores Tequila
xxxxx xxxxx xxxxx xxxxxx xxxx xxxxx
El Jimador xxxx xxxxx xxxxx xxxxx xxxxx xxxxx
Margaritaville Tequila
xxxx xxxxx xxxxx1 xxxx xxxxx xxxx
Source: The IWSR
The category has undoubtedly been affected by the economic downturn in the
US. Despite this, Tequila remains one of the most rapidly growing categories
in the US spirits market. By volume, the category was the third-fastest growth
sector in spirits behind vodka and rum.
Jose Cuervo managing director Gerry Reid says: “The US Tequila market has
been growing at a very dynamic rate for the past three to five years. It has
been increasing faster than the average for total spirits and continues to do so.
The US market is going to grow more slowly this year because of the
economy, but fundamentally it is still fairly good. Tequila got a couple of
percentage points‟ growth in a business that not too many people did in the
last year.”