HiteJinro, Kooksoondang, and Diageo Launch Tequila One After Another
New Growth Engine Driving Distilled Spirits Market Expansion
The alcoholic beverage industry is strengthening its portfolio by consecutively launching premium tequilas. With interest in distilled spirits at an all-time high due to the whiskey craze, tequila is being positioned as a new driving force to expand the market and sustain continuous growth.
Premium New Tequilas Released One After Another
According to the alcoholic beverage industry on the 17th, Kooksoondang officially launched and began selling the tequila brand '818 Tequila,' released in 2021 by the global model and influencer Kendall Jenner, on the 16th. 818 Tequila is made exclusively from ‘Blue Weber Agave’ cultivated for over 8 years, and each product undergoes aging in oak barrels ranging from as short as 3 weeks to as long as 8 years.
Tequila is a type of Mexican distilled spirit called ‘Mezcal,’ which is distilled from the succulent plant agave. Among mezcals, only those made from agave known as Blue Agave and produced near Guadalajara in the state of Jalisco are called tequila. Depending on the aging period, tequila aged less than two months is called ‘Blanco,’ meaning white, and is mainly used for cocktails. Those aged less than one year in oak barrels are called ‘Reposado,’ less than three years ‘A?ejo,’ and over three years ‘Extra A?ejo.’
Recently, new tequila brands have been continuously launched in the domestic market. HiteJinro introduced the premium tequila ‘KOMOS’ on the 14th. KOMOS is a high-end tequila brand that received a perfect score of 100 from the American liquor specialty magazine ‘The Tasting Panel Magazine,’ the first tequila to do so, and like 818 Tequila, it is made from 100% Blue Agave. The newly released products include two types: ‘KOMOS A?ejo Cristalino’ and ‘KOMOS Extra A?ejo,’ both with 40% alcohol content, packaged in handcrafted ceramic bottles engraved with unique serial numbers to enhance luxury.
Earlier, Diageo Korea launched the luxury tequila 'Don Julio 1942' in September last year and has been strengthening its marketing. Don Julio 1942 uses the sweetest part of the agave and ferments it with a proprietary yeast developed by the founder Don Julio Gonzalez himself. The resulting tequila is characterized by aromas blending caramel, almond, and coffee, with a subtle and smooth texture and a finish reminiscent of dark chocolate.
Whiskey Popularity Spreads to Tequila
The recent focus on tequila in the alcoholic beverage industry stems from the expanding popularity and interest in distilled spirits beyond whiskey to other spirit categories. An industry insider explained, "The whiskey boom that started mainly with Scotch single malt whiskey has gradually spread to bourbon whiskey, Japanese whiskey, and New World whiskey, and now it is extending to tequila, brandy, baijiu, and others."
Underlying this expansion of distilled spirit popularity beyond categories is the phenomenon of the ‘popularization of highball.’ Since the highball drinking method involves mixing high-proof distilled spirits with soda or other mixers to enhance drinkability, the base spirit does not have to be whiskey; tequila, brandy, gin, vodka, and various other distilled spirits can be used. As consumer preferences diversify and highball culture spreads, it is natural for interest and consumption to expand from whiskey to other distilled spirits, according to industry perception.
Additionally, a notable characteristic of tequilas recently introduced domestically is that they are premium products priced over 300,000 KRW per bottle rather than low-cost options. This change is closely related to shifts in drinking methods. In Korea, tequila gained popularity in the mid to late 2000s mainly in clubs and university areas. At that time, tequila had a strong image as a cheap liquor consumed straight with lemon and salt. However, as drinking culture shifted from drinking to get drunk to enjoying the inherent flavors of alcohol, domestically distributed tequila has also evolved from inexpensive entry-level products to premium products with distinctive flavors. In fact, the industry is focusing distribution of these products on hotels, department stores, and home channels.
This premiumization trend of tequila can also be confirmed through import trends. According to the Korea Customs Service, domestic tequila imports last year amounted to 755 tons, about 100 tons less than the previous year (866 tons). Despite the decrease in import volume, the import value increased from 5.87 million USD to 6.48 million USD (approximately 9 billion KRW). The trend in tequila imports and consumption is shifting from ‘quantity to quality.’ Although imports slowed last year, tequila imports increased by about 75% over three years from 434 tons in 2020 to 755 tons last year. During the same period, import value also rose about 2.5 times from 2.53 million USD to 6.48 million USD, marking a steep growth trend despite the still relatively small market size.
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
