The shining star
Acquired from Casa Cuervo in 2015, Don Julio has become a star performer for Diageo. Organic net sales surged 42% in the first six months of the 2018 fiscal year, with volumes rising 35%. The Spirits Business says Don Julio crossed over the million-case threshold for the first time in 2017, moving 1.3 million cases, which makes it the fourth-biggest seller. However, its 44.4% volume growth last year makes Don Julio the fastest-growing major tequila brand in the world.
Diageo CEO Ivan M. Menezes notes that both Don Julio and Casamigos are growing far faster than the tequila category itself, as well as the super premium category. In other words, they are gaining market share. While Bacardis acquisition of Patron gives the rum maker a bigger presence in the U.S., Diageo's tequila portfolio is growing faster and shouldn't face any problems now that its rival has switched owners.
Scotch whiskey will continue to lead the way for Diageo as the spirit accounts for 27% of total sales. Still, as tequila's popularity continues to grow and as Don Julio maintains its rapid-fire growth trajectory, look for it to climb the ranks of brands in both size and importance.
Diageo Lays Claim to the World's Fastest-Growing Tequila Brand -- The Motley Fool
