Spirits in Mexico

PROSPECTS

Mid-priced whiskies lead growth

Over the review period, spirits volume sales were led by low and mid-priced whiskies that compete with similar priced brands in other areas such as rum and brandy. In 2017, an outstanding performance was posted by Diageo’s Black & White, with sales being driven mainly by demand among younger adults.

Rising demand for higher quality products drives growth

In 2017, Mexico was among the top-10 most unequal countries in the world in terms of income. The country has a small and growing group of affluent individuals able to afford high-end spirits, most notably in other blended Scotch, thus prompting healthy demand for premium and above brands.

Cocktail culture fuelling demand among younger consumers

Over the review period, the growth of more premium offerings spread to other products such as single malt Scotch and English gin. The latter is growing rapidly from a low sales base, driven by premium and super-premium brands such as Bombay Sapphire, Tanqueray and Hendrick’s.

COMPETITIVE LANDSCAPE

Multinational companies bet on mezcal

Over the review period, sales of artisanal spirits grew as consumers are increasingly curious about manufacturing processes, ingredients and the role that companies play within their communities. This has fuelled the interest of multinational companies in spirits areas such as mezcal, which continues to gain popularity.

Investment in distribution and advertising key to success

Over the forecast period, sales of mezcal are expected to continue growing strongly, with multinational companies increasing distribution and investing in promotion and advertising. An important challenge is to maintain the essence of mezcal, which is valued for its artisanal production and the exclusivity of small-batches.

Casa Cuervo goes public

In 2017, Casa Cuervo the leading producer and distributor of tequila in the country, launched an IPO under the name Becle SA de CV. In 2016, the company merged independent players Casa Cuervo and Proximo Spirits.

Files are delivered directly into your account within a few minutes of purchase.