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Tequila set to Become a Preferred Choice

The tequila market in India is poised for robust growth in the coming years, driven by rising disposable incomes, changing consumer preferences, increased brand investments, and the expanding hospitality sector.

New Update
 Neeraj Sachdeva, Managing Director, Lake Forest Wines

If there is one thing that experts from the alcoholic beverage industry will agree on, it is the undeniable fact that tequila consumption in India has grown over the past few years. There are several factors that have driven this growth curve. Primarily, it can be attributed to increasing affluence. “As disposable incomes rise, particularly among the urban middle and upper classes, there is a growing inclination to explore and enjoy premium spirits like tequila,” observes Neeraj.

He says that rapid urbanisation in India has led to the proliferation of nightlife, bars and upscale restaurants, which commonly serve tequila-based cocktails and premium tequila brands. Neeraj also views that exposure to global cultures through travel, social media and entertainment has introduced many Indians to tequila, leading to its increased demand. “Major tequila brands have invested in marketing campaigns in India and have improved the availability of their products across metropolitan cities,” Neeraj informs.
While tequila consumption is growing in India, it remains much more prevalent in major cities such as Mumbai, Delhi, Bengaluru and Hyderabad, compared to rural areas.

 

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Neeraj rightly observes that tequila consumption in India is primarily an urban phenomenon. The reasons for this according to him are urban areas in India having a higher concentration of venues that serve tequila, urban populations in the country having greater exposure to international trends and lifestyle choices, and urban population in India typically having higher disposable incomes, on an average, allowing them to afford premium spirits like tequila.

Delhi and Mumbai duty-free stores are seeing a notable increase in sales of high-end tequilas. This trend clearly indicates that Indian consumers are developing a sophisticated palate and a growing appreciation for premium spirits.

Given this momentum, Neeraj believes that the Indian market is now ripe for the introduction of superpremium and luxury tequila brands. In light of this, Lake Forest Wines has announced the forthcoming launch of Don Santos Clase Azul Tequila in India.

As the importers of the worldrenowned Casa Noble Tequila, we proudly offer premium 100 percent agave tequilas. Our company-owned brand, Tequila Pablina Gold & Silver, has been awarded the Gold Medal for Liquid Tasting at the Spiritz Selection 2023,” Neeraj Sachdeva discloses.

Impressive Market Share

The brands offered by Lake Forest Wines hold a respectable market share in India. “Casa Noble is positioned near Don Julio, while Pablina has been performing comparably to Camino. Currently, these products are widely available across Haryana, Maharashtra and Goa. We look forward to expanding to duty-free outlets soon,” Neeraj asserts. Here, the retail vertical plays a crucial role with their tequila brands’ presence in 12 different outlets across the heart of Haryana.

“The trust and goodwill from our loyal consumers enable us to serve their needs within the industry’s regulatory norms. We cater to a diverse range of consumers and provide comprehensive support for events, activations, sponsorships and CSR initiatives,” informs Neeraj. Meanwhile, Central India, including cities like Bhopal and Indore, are witnessing a rise in disposable incomes and lifes tyle changes that favour premium alcoholic beverages.

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Geographical Spread
The market dynamics for tequila are interesting. North India, with cities like Delhi, Chandigarh and Jaipur, has a burgeoning middle and upper-class population with a growing interest in premium spirits. “Consumers in these areas are increasingly exploring highquality tequila, driven by global trends and a desire for unique drinking experiences,” Neeraj observes. The Añejo, in particular, has become a symbol of status and sophistication. In Central India, there is a growing trend of consumers seeking out authentic and premium spirits and they are contributing to tequila’s popularity.

Here, Blanco and Reposado are particularly popular for their mixability and smooth taste. “Casa Noble Tequila, with its three distinct expressions — Añejo, Blanco and Reposado — has successfully captured the North and Central India markets. The brand’s commitment to quality, combined with the evolving preferences of Indian consumers towards premium and authentic spirits, has driven its strong performance in these regions,” Neeraj informs.

Packaging Matters

The packaging and bottle design of tequila brands like Casa Noble and Pablina play a significant role in influencing consumer choices. By combining aesthetic appeal with practical functionality, these brands create a strong visual identity that resonates with consumers, enhances the perceived value of the product, and drives sales. As Neeraj puts it, first impressions count a lot. The packaging is often the first point of interaction between the consumers and the product. An attractive design can draw attention and generate curiosity.

 

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Further, well-designed packaging communicates the brand’s story, heritage and values. It helps differentiate the product in a crowded market. Practical and aesthetically pleasing designs enhance the user experience, making the act of opening and serving tequila more enjoyable. For example, Casa Noble bottles are known for their distinctive, elegant shape, often resembling a traditional decanter. This gives a sense of luxury and heritage. The labels are minimalist yet sophisticated, with metallic accents and embossing that highlight the brand’s premium status.

The use of deep, rich colours and high-quality materials such as glass and ceramic enhances the visual appeal and suggests a highquality product inside. “The unique bottle design makes Casa Noble easily recognisable on the shelf, contributing to its brand loyalty and repeat purchases. Also, the luxurious packaging makes it an attractive choice for gifting,” Neeraj points out. In the case of Pablina, the artistically designed bottles often feature intricate artwork and vibrant colours, making each bottle a work of art. The designs reflect the rich heritage of tequila-making and Mexican culture.

Pablina frequently releases limited edition bottles with unique designs, creating a sense of exclusivity and urgency among buyers. The artistic and limited edition bottles appeal to collectors and enthusiasts who value the aesthetic as much as the tequila itself. Moreover, the visually striking bottles are popular on the social media, helping to attract a younger, trend-conscious audience who enjoy sharing their purchases online. And now is the forthcoming launch of Don Santos Clas Azule Tequila that is all set to create a big buzz with its extraordinary design.

Tequilas on Offer

The soon-to-be-launched Don Santos Clase Azul Tequila is crafted from 100 percent blue agave and offers an unparalleled taste experience that resonates with connoisseurs and casual drinkers alike. One of the tequila brands offered by Lake Forest Wines that has become steadily popular is Casa Noble that emphasises sustainability, craftsmanship and tradition, making it a favourite among tequila enthusiasts.

It comes in three expressions, one of which is Casa Noble Añejo, which is aged for two years in French white oak barrels and has a rich, complex flavour profile while the second is Casa Noble Blanco which is not aged, and is bottled directly after distillation to preserve its pure agave flavour. It boasts of bright, crisp notes of citrus and herbs with a hint of pepper; delivering a clean and refreshing taste. The third is Casa Noble Reposado which is aged for 364 days in French white oak barrels. It features flavours of cooked agave, vanilla and oak, with a smooth, mellow finish.