by KYLE SWARTZ

One possible answer : Look at whiskey . This other trendy category exploded in popularity years before tequila ’ s rapid rise . Tequila has always seemed a few years behind the trajectory of brown spirits , as more bourbon drinkers discovered that they also enjoyed the sweet profile and similar complexities of agave alternatives .

Whiskey has now cooled off . Its own annual double-digit gains have come down , approaching if not reaching the respectable single digits . After the combined tequila and mezcal category grew 17 % in 2022 , according to the Distilled Spirits Council of the United States , will these spirits follow bourbon lower ? Depends on whom you ask .

“ The tequila market is stronger than ever ,” says Mike Moreno , owner of Moreno ’ s Liquors in Chicago , a Beverage Dynamics Top 100 Retailer , and the largest vendor of agave spirits in America . “ Tequila sales are up 20 %. Cask strength tequila sales are up 25 %. In 2023 , tequila was supposed to outpace vodka by the end of the year . Instead , it ended up outperforming vodka by the end of Q2 . That ’ s how quickly it ’ s growing .”

From the standpoint of the middle tier , the outlook is also positive but more modest .

“ As a category , growth has slowed pretty substantially over the last 12 months as the overall spirits industry has also seen some softness ,” says Zachary Poelma , Southern Glazer ' s Wine & Spirits SVP supplier strategy & insights . “ Tequila continues to outperform , and we believe will do so in 2024 , but not at the same rate we saw in 2022 or 2023 . “

“ We expect tequila to grow modestly in 2024 in the low-single digit range , which we think still outpaces overall spirits when you exclude RTDs ,” he adds . “ The value price

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