THE RISE OF A CATEGORY THAT REFUSES TO BE TAMED

For years, the tequila category has been defying expectations. Even under political pressure – like Trump’s threatened tariffs on Mexican imports – this once-niche spirit not only held its ground but continued to explode into global popularity.

Now, it’s more than just a category – it’s a cultural force. And at the centre of that movement is a new wave of drinks brands fusing heritage, premiumisation, and cultural storytelling in bold, brilliant ways.

Recent data from CGA by NIQ shows that ultra-premium tequila is leading the charge in the US on-trade, with premium-and-above spirits accounting for 35.6% of sales by volume across bars, clubs, and restaurants. Tequila alone took 3.7% of ultra-premium spirits volume, stealing share from gin, whiskey, and cordials.

Whilst Tequila may still represent a relatively small share of the UK’s total spirits market, its momentum is impossible to ignore. In the off-trade, sales surged, driven largely by a remarkable 150.5% boost in RTD tequila drinks like canned Margaritas. Whilst in the on-trade, CGA data shows tequila climbing to a 3.3% share of total spirits value.

This is no passing trend, it’s a signal. Tequila is no longer just a spirit; it’s a status.

HOW TEQUILA BECAME THE CULTURAL POWERHOUSE OF SPIRITS

At the heart of this boom are brands that understand how to blend authenticity with cultural agility. Take Don Julio, for example—recently named the world’s strongest spirit by Brand Finance.

But Don Julio’s real strength doesn’t lie in proof points – it lies in brand power.

The brand’s halo expression, Don Julio 1942, has become more than a product; it’s a social signal. Through clever halo marketing, luxury gifting moments, and near-mythical visibility in nightclubs and travel retail, it has cemented itself as a must-have for high-end consumption moments. Add to that a lifestyle-forward partnership with Peggy Gou, designing the limited-edition “194구” bottle, and you see how the brand merges premium cues with global nightlife culture.

They didn’t stop there. Don Julio’s foray into mixed reality via Apple Vision Pro and a string of immersive brand activations has set a new bar for experiential storytelling. It’s a masterclass in drinks branding – staying rooted in craft while boldly exploring what’s next.

CELEBRITY POWER: FROM CO-FOUNDERS TO CULTURAL ARCHITECTS

The tequila category’s magnetic pull isn’t just due to taste or provenance – it’s become a magnet for some of the world’s biggest cultural icons.

From Kendall Jenner’s 818 Tequila, which taps into Gen Z through sustainability and social clout, to LeBron James’ Lobos 1707, built on authenticity and community, today’s tequila brands aren’t just endorsed, they’re co-authored by global icons.

These aren’t vanity plays. These are strategic investments – each one reinforcing tequila’s place at the intersection of entertainment, lifestyle, and luxury.

WHAT PREMIUMISATION REALLY LOOKS LIKE

As a creative drinks agency, we track the patterns behind the packaging, and what we’re seeing is a recalibration of how value is perceived in spirits.

While overall volume for higher-priced spirits is down, the premium and ultra-premium tiers are gaining share. Nightclubs, in particular, are key battlegrounds, where high-end tequila is outperforming mid-tier and value rivals.

In the US, this shift has been especially sharp in California, where ultra-premium now holds 9.7% of total on-trade volume.

In real terms, this means brands must now:

Show up with flavour and flair
Connect through culture, not just campaigns
Build presence across moments and channels

And above all – play the long game, just like Don Julio.

THE WONDERWORKS PERSPECTIVE

At Wonderworks, we believe the success of Don Julio, 818, Lobos1707 and others isn’t just about tequila – it’s about a new kind of brand building. One where creative strategy, cultural insight, and category expertise come together to create not just brands, but icons.

The tequila boom isn’t slowing down. But the brands that lead the next chapter will be the ones who build with purpose, show up with clarity, and make culture their playground.

Taking your Drinks Brand to new Heights

If you’re crafting or redefining a drinks brand and want to own your cultural moment – we’d love to help write the story.