Tequila is booming business. In the last couple of months we’ve seen a lot of movement on the market. Diageo paid 700 million dollar for Casamigos, which is a rather small brand. Another 300 million dollar in bonusses can be added to the deal if the brand reaches certain targets. Bacardi-Martini already owned 30% of Patrón Spirits. In 2017 they applied to buy the remaining 70% of the shares. This deal values the tequila brand at a whopping 5.1 billion dollar. Pernod-Ricard also made a move last month when they took full control of Tequila Avión (after already owning a large majority of the shares).
Tequila, as an industry, is strictly regulated and inspected by the Consejo Regulador del Tequila (CRT). One of the benefits of the many inspections is that the CRT has loads of reliable records. I gathered a (big) bunch of data* and crunched the numbers to find out why big companies are paying up crazy amounts to get in on the action. Here are some of the results I came up with.
Reason no. 1) Increasing revenue
The biggest reason is obvious: the sales of tequila is increasing. Over the last 20 years the sales of tequila has nearly tripled. Tequila export grew from less than 65 million liter in 1995 to over 180 million in 2015. It doesn’t seem to stop either. From 2015 to 2017 the market increased by another 20% to over 210 million liter exported tequila per annum.