Tequila on the Premium Track

Number crunching is the best way to prove a point. Take the tequila and agave spirits segment, for instance. It is estimated that there are 123,000 cases (9 BL) of imported tequila in India. But Sumedh Singh Mandla informs that during the last five years the tequila and agave spirits category has shown a robust CAGR of 24 percent. It is projected to show similar growth over the next five years. That is certainly impressive and speaks volumes about the potential for this spirit. In fact, it is quite surprising that drink that was once rather in the shadows in India’s alcobev market has now emerged at the forefront, and at a rapid pace.

the forefront, and at a rapid pace. Moreover, tequila consumption has also grown globally in the recent past due to low-sugar and low-calorie factor, and thereby it is considered a healthy drinking option.

Data also shows that the dutyfree stores of Delhi and Mumbai are witnessing a notable increase in the sales of high-end tequilas. “Consumers tend to purchase more premium products in all categories at the duty-free points due to inherent price difference with the domestic market. The same is true for super premium and luxury tequila brands as well. These categories have witnessed robust growth in India during the last five years and their CAGR is higher than the standard tequila category,” explains Sumedh.

Riding the Tequila Wave

Taking into account this rising preference for tequila, VBev has recently introduced two tequila brands in the ultra-premium and superpremium categories in its portfolio. These have been registered and introduced in Maharashtra with an aim to open their distribution across India, supported by brand awareness and activation focus across all the key markets in the next six months. Among the domestic markets, the company has experienced good brand traction in tequila, in the hotel, restaurant, catering and retail channels.

The primary consumers of these brands in the ultra-premium and super-premium price tier are consumers of 100 percent agave spirits and the ones who love to sip their tequilas. “We are catering to a niche consumer segment that is looking for top trending tequila brands,” says Sumedh.

Tequila Galore at VBev 

VBev has introduced India’s first ultra-premium tequila brand, KAH Tequila. The word ‘KAH’ means ‘life’ in the ancient Mayan language. Both the bottle and the spirit are reflective of Dia de los Muertos (Day of the Dead), a 3,000-year-old MesoAmerican ritual honouring deceased loved ones. KAH’s unique packaging is inspired by traditional Calaveras (sugar skulls) used in these rituals to symbolise death and rebirth. Made in Jalisco, Mexico, from hand-selected 100 percent blue weber agave, KAH Tequila is crafted by Master Distiller Arturo Fuentes Cortes. Currently, VBev offers two expressions of KAH Tequila.

The first product, KAH Blanco, features a white skull image inspired by the Bolivian tradition of Día de Los Muertos. According to this ritual, the skulls of loved ones are kept and brought out on November 8 each year. The skulls are carried to the cemetery, where they are given cigarettes and tequila, believed to immortalise the dead, who then protect the living from evil spirits. The cork is shaped like pan de muerto (bread of the dead), a common offering for the deceased. KAH Blanco initially offers a sweet flavour, quickly followed by peppery spice and has a silky, delicate mouthfeel.
The retail price for KAH Blanco inMaharashtra is Rs. 13,900.

The second product, KAH Reposado, comes in a red and yellow bottle inspired by the Peruvian Día de Los Muertos celebrations, where a dance to Satan is performed wearing long, dangling upturned crucifixes. It is believed that Satan himself leads the dance. The dance is performed in honour of the devil, and tequila is poured on the ground as an offering to appease him and keep people safe. This tequila is aged in American oak casks and offers an intense agave flavour with hints of vanilla and caramel.
The retail price for KAH Reposado in Maharashtra is Rs. 15,900.

Another super-premium tequila brand in the VBev’s portfolio is Rooster Rojo. Produced in the UNESCO-protected tequila production region at the foot of Volcán de Tequila in Mexico, Rooster Rojo uses water from the volcanic water system. It is made from 100 percent blue weber agave and is koshercertified. Rooster Rojo represents the best in traditional tequila-making techniques, coupled with 45 years of distillation experience of Master Distiller Arturo Fuentes Cortes.

Rooster Rojo is twice distilled in stainless steel pot stills to preserve the flavours and aroma of agave. There are currently two expressions available in India. Rooster Rojo Blanco, not matured in oak, rests for at least 10 hours after distillation in stainless steel vats. Double-distilled from mature agave juices, it preserves maximum agave aromas and flavours.

Rooster Rojo Reposado is aged for around six months in used bourbon barrels. The piñas are hand-chosen after 6-7 months of growth and possess residual sugar levels of 24-27 percent. This sweetness, plus the ‘halving’ of the piñas prior to distillation versus sectioning, gives the drink a noticeable sweetness as well as a bronze colour with aromas of subtle vanilla and cinnamon with a distinctive touch of butterscotch. The retail price for Rooster Rojo Blanco in Maharashtra is Rs. 7,200, and for Rooster Rojo Reposado is Rs. 8,200.

The Tequila Market Outlook

Given the rising preference for tequila, especially in leading metro cities in India, VBev is planning for portfolio extension for the existing brands. “We already have a mezcal and smoked pineapple tequila expression into consideration,” says Sumedh Singh Mandla.

The tequila market is projected to show a CAGR of 18-20 percent over the next five years. Sumedh believes that the super-premium and ultra-premium categories, on their smaller base, will grow faster in India.