From 2017 to 2022, the global distilled spirits industry grew at a compound annual growth rate of 2.2% in volume terms, according to IWSR data referenced by Becle, owner of the Jose Cuervo brand.
However, the market has experienced a 5.6% growth in terms of sales value.
On the other hand, growth rates among different distilled spirits categories and geographic areas have varied significantly.
These variations are due to multiple factors, including:
- Divergent economic forecasts in various regions.
- Changes in consumer preferences.
- Regulatory changes.
- Other government initiatives, as well as category and market-specific factors.
Distilled spirits
In particular, tequila, Becle’s core distilled spirits category, experienced a compound annual growth rate of 8.3% in volume between 2017 and 2022, outperforming the overall distilled spirits market.
In addition, the Irish whiskey category, which accounted for 4.31% of Becle’s FY2023 sales value, has been one of the fastest growing categories in terms of volume.
Between 2017 and 2022, it achieved a compound annual growth rate of 8.9%.
The company also participates significantly in other distilled spirits categories, including mezcal, vodka, rum and gin, among others.
Tequila
The stages of the distillation process are described below:
- A raw material is fermented to convert sugars into alcohol.
- The fermented liquid is then heated, evaporating the alcohol before the water.
- The vapors are cooled and condensed in a tube, obtaining a liquid with a higher alcohol concentration.
- This process can be repeated to increase purity.
Finally, tequila is a high quality alcoholic beverage produced from Blue Agave, a plant grown exclusively in the Tequila Denomination of Origin region of Mexico.
This region includes the entire state of Jalisco, as well as certain neighboring municipalities in Guanajuato, Nayarit and Michoacán, and some localities in the state of Tamaulipas.