Insights from Samuel Gordon, CEO of GORDON Private Whiskey Clients
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Samuel, CO-FOUNDER & CEO
As CEO and co-founder, Samuel carries forward a family legacy of passion for spirits. His journey began with Scotch whisky investments, expanding to encompass Irish and Japanese markets. Now, he brings his expertise to the US, pioneering tequila investment opportunities. Visit our blog for more insights from Samuel.
At GORDON Private Whiskey Clients, we pride ourselves on staying at the forefront of the spirits industry. Our CEO, Samuel Gordon, a pioneer in cask investment, has been closely observing the rapid ascent of 100% agave tequila. He believes it is establishing itself as a formidable rival to scotch whisky on the global stage.
“Consider the numbers,” says Samuel Gordon. “In 2022, tequila surpassed whiskey in US sales by volume, and by 2023, it had also outpaced whiskey in sales by value.”
The growth trajectory of the tequila market has been nothing short of remarkable. Sales have soared from $2.1 billion in 2014 to $16.5 billion in 2023, with projections indicating a potential climb to $42.5 billion by 2032. This remarkable surge is largely driven by the premium segment, which includes high-quality 100% agave tequilas such as añejo and extra añejo—products that naturally command higher price points.
Samuel Gordon highlights, “The super-premium category, featuring the highest-value bottles, is leading this expansion and is expected to represent 40% of volume and 55% of value by 2026. This segment has been a crucial driver of the market’s growth over the past decade.”
He further explains, “The rising demand and premiumization of tequila position it as a strong contender against scotch for the title of the world’s most coveted premium spirit.”
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Currently, approximately 75% of tequila sales are concentrated in the United States, where growth has begun to stabilize at more sustainable levels, though volumes remain significantly higher than in other regions.
“The US has always set global spirits trends,” notes Gordon. “We’re particularly excited about the growth prospects outside the US. Major spirit companies like Pernod Ricard and Diageo, alongside endorsements from celebrities such as George Clooney, have significantly elevated tequila’s profile in key markets like the UK, Canada, Europe, and Asia-Pacific. These regions are now experiencing double-digit growth.”
The ongoing premiumization of tequila is supported by several key factors: rising disposable incomes, increasing affluence, and shifting consumer preferences towards higher-value spirits.
When asked whether this trend might be a passing fad, Gordon responds, “Markets are inherently cyclical, and tequila is no exception. However, the data clearly indicates a trend: younger consumers, particularly those aged 25-45—my own demographic—are gravitating towards agave-based spirits like tequila and mezcal for their lighter, more aromatic qualities. These consumers are shaping the future of the market.”
He adds, “Brands are effectively appealing to these younger generations, a challenge that whisky brands may struggle to meet without compromising their established identities.”
Samuel Gordon also points out that both premiumization and stringent regulations have played a significant role in tequila’s success. “Tequila is increasingly viewed as a status symbol, akin to single malt scotch,” he explains. “Brands like Don Julio and Patrón are becoming as recognizable as Macallan and Glenfiddich. The industry has also benefited from rigorous regulations over the past 50 years, including the establishment of the Denomination of Origin. This framework, similar to that of scotch or champagne, ensures the quality and authenticity of tequila by controlling production within five specific regions in Mexico.”
In conclusion, at GORDON Private Whiskey Clients, we recognize that 100% agave tequila is undeniably making waves and emerging as a significant competitor to single malt whisky. Its rapid ascent reflects a shifting landscape in consumer preferences, where tequila’s complex and diverse profiles are increasingly celebrated. The robust growth in the premium segment suggests that tequila is carving out a lasting presence in the global market.
Nonetheless, we continue to value the enduring appeal and deep-rooted heritage of single malt whisky, which remains a stalwart in the world of premium spirits. As tequila rises, it does so alongside whisky, with each maintaining its unique allure and prestige. Both spirits are poised to thrive, contributing to a rich and varied tapestry of high-quality offerings in the spirits world.
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