The tequila boom is over. The tequila price war has begun.
Subscribe to enjoy similar stories. America is losing its taste for top-shelf tequila. Sales of the Mexican liquor soared over the past decade, making it the second-most popular spirit in the U.S.
after vodka. But demand for tequila has cooled, and drinkers are looking for cheaper pours. High-end brands including Diageo’s Casamigos and Bacardi’s Patrón have been lowering prices for more than a year, according to an analysis by equity research firm Bernstein.
Until recently, a 750 milliliter bottle of Casamigos Blanco typically sold for more than $45, according to industry tracker IWSR. Now it sells for as little as $40, depending on the location. U.S.
sales volume of tequila, mescal and other agave-based spirits were roughly flat in 2024, according to IWSR. Sales fell in ultra-premium tequila, priced between $45 and $99.99, and grew in the middle tiers priced between $22.50 and $44.99. Diageo said that to meet different consumer needs, it is now positioning Casamigos at a lower price point than its Don Julio brand.
Pricing for Casamigos “got out of whack from where it needed to be," in part because of out-of-stock problems during the Covid-19 pandemic, Chief Executive Debra Crew said. “In stores where we have actually implemented the right pricing strategy, we are seeing improvements," she said Tuesday on a call with analysts. The move by consumers away from pricey tequila marks a reversal of a yearslong trend.
Until recently, many consumers had been trading up to more expensive wine and spirits. Tequila, once associated with sugary margaritas and eye-watering shots, grew in popularity thanks to celebrity endorsements, increased interest in craft spirits and a shift toward drinking less but better. Spurred by these
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