Tequila is one of the hottest distilled spirits categories in the world. Similar to Bourbon which can only be made in the United States, Tequila can only legally be made in Mexico.
In order to keep the white spirits flowing William Grant & Sons has announced its acquisition of a distillery in Mexico for the fast-growing Milagro Tequila brand.
Since 2015, Milagro has averaged double-digit annual growth in the U.S. market, reaching over 300,000 9L cases in annual sales, making it the country’s fifth largest premium tequila brand. This acquisition will protect the brand’s continued success, while opening up the opportunity for future innovation for the company.
“2020 has seen accelerated consumer interest in the premium tequila category, with Nielsen markets showing retail growth of over 30% over the last quarter alone, and with Milagro out-pacing the category with almost 50% retail growth,” said Jonathan Yusen, WG&S President & Managing Director, Americas.
Further demonstrating its commitment to the brand, WG&S has re-introduced its ultra-premium “Milagro Select” range with a bold, bright new look. Each bottle, engraved with a Blue Agave plant design, provides a modern sophistication to the traditional tequila cues and features a vibrant pop of color that stands out on any shelf.
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Milagro Tequila is made from 100% blue agave from the Jalisco highlands and uniquely distilled using both pot and column stills to retain the vibrant flavor. The distinctive taste earned the brand the Gold Medal at the 2020 San Francisco World Spirits Competition and a score of 92 out of 100 from the tasting panel at the 2020 Ultimate Spirits Challenge, reflecting WG&S’ continued commitment to liquid leadership across every category in which it competes.
Yusen continued, “Milagro has always been an exciting brand within our award-winning portfolio, and with this distillery it is now a clear long-term priority for our global business, alongside such iconic premium brands as Glenfiddich Single Malt Scotch, Hendrick’s Gin and Tullamore D.E.W. Irish Whiskey. This acquisition allows us to manage our production more closely, ensuring the long-term quality and consistency of our Silver, Reposado and Añejo offerings, while bringing our innovation expertise to agave-based spirits.”
The Mexican distillery acquisition forms part of WG&S’s multi-million pound investment plan to build its brands globally and upgrade its infrastructure to support its growth ambitions.
Simon Hunt, William Grant & Sons Chief Executive, said: “One of the many benefits of our independent family ownership is that we have the freedom to make the right choices for our long-term success. We have spent the last two years working on this plan to acquire our own distillery in Mexico, and we’re delighted we have found the right option for our business.
He added: “We’re excited by this move to build a strong platform for further innovation that will help us take full advantage of global opportunities in the fast-growing premium tequila category. It demonstrates our commitment to investment in global growth despite the impact of the coronavirus pandemic.”
“The acquisition of the tequila distillery in Mexico and our recent decision to set up our own dedicated distribution business in Germany are two examples of our investment decisions at a difficult time for our people, our trade partners, our loyal brand fans and our industry.”
Over the last few years, WG&S has made a number of significant investments in its operations.