Tequila became America's second-most popular spirit through celebrity brands like The Rock's and Casamigos, which Diageo bought for $1 billion. Now the market is collapsing due to lower alcohol consumption and a threatened 25% U.S. tariff on Mexican tequila, triggering panic buying before prices spike.
Tequila was on pace to be the number one selling alcohol in the United States, but now the market is absolutely cratering, and here's why. Over the last decade, tequila became the drink of choice, climbing the ranks to America's second favorite spirit after vodka. And it's easy to see why. Consumers were sparing no expense back then, opting for premium drinks, craft cocktails, and bottles endorsed by A-list celebrities. And we saw The Rock and Kendall Jenner dominate tequila. Heck, even Diageo dropped $1 billion to acquire George Clooney's tequila brand, Casamigos. Billion bucks, it's a lot of money. But now the party's over, over. I think we've been Bogarting this puppy long enough because tequila is at risk on all fronts. First, there's a generational shift towards drinking less alcohol, and most critically, a looming 25% Mexican import tariff that could send prices soaring. And although the tariff is currently on hold, if it goes through, import brands like Casamigos, Patron, and Don Julio will see a massive hit. So tequila drinkers are panic buying their favorite bottles before prices skyrocket. Get the full story by watching the video linked here.
