If you’ve been reading Mezcalistas and the newsletter for a while, you probably know that I love numbers and picking them apart and looking at how to read through the lines. Call it that economics nerd that lives inside me. So, when DISCUS (the Distilled Spirits Council of the United States) released the power point presentation from its recent annual economic briefing, I dove in.

None of the numbers were a surprise given all of the anecdotal things I’d been hearing over the past 9 months. Overall spirits sales numbers in 2024 were slightly down in revenue (-1%) and slightly up in volume (+1%). Regarding market share by revenue, Spirits are now 42.2% of the overall alcohol market in the US, slightly ahead of Beer (42%).

The report also highlighted that while total alcohol sales declined, the Spirits category continued to grow and maintained an average annual growth of 5.5% since 2003. Reading between the lines, I sense that DISCUS is trying to seriously adjust expectations given that sales in Spirits have been relatively flat these past three years. That average growth rate highlighted was driven by accelerated growth seen from 2015 thru 2020. Even Tequila and Mezcal, categories fueling much of the spirits boom, have slowed these last three years from their double digit growth, though still remain well ahead of pre-pandemic numbers.

Something else that stood out in the numbers, the stall of high value/premium spirits which is where most mezcal sales are to be found. DISCUS took a glass is half full perspective with the below slide:

Cocktails/RTDs is without doubt the growth driver for the Spirits market these days. Sales by $$ are up 16.5% and 17.5% by volume from 2023. I would be very curious to see a breakdown of demographics, particularly age, to see who is drinking RTDs because I think that might shift people’s perspectives on Gen Z and their alcohol consumption habits - yes, they drink, just differently.

What does it all mean? The market might be stuck here for a while as consumers continue to readjust their consumption habits as I’ve written about before. That does not mean the sky is falling, it just means hustling harder and understanding that the on premise market (bars and restaurants) continues to contract and has yet to return to pre-pandemic levels of sales and employment. If you are a brand, large or micro, you really need to rethink a sales strategy and where to put your marketing dollars and efforts to get the biggest return.

In other news, last August I had a chance to briefly meet mezcalero Tomás Mendez when picking up some samples of Mezcal Chulele. Our short conversation was absolutely as he talked about everything he did - from growing agave, to making mezcal, to helping source, store and bottle - he was a one man shop for all your mezcal needs and the perfect Mr. Fix It. Anna Bruce had a chance to spend more time with him and has this terrific profile on Tomás and his business.  

Turning from mezcal for a moment, be sure to check out Leigh Thelmadatter’s in depth piece on Mexican gin and why it has really come into its own (hint - native sugars and botanicals). We’ve also got two great pairing pieces from Tess Rose Lampert - the perfect winter hot toddy and a back to the basics DIY tasting that will impress your friends and family. Finally, be sure to check out all of the great mezcal events happening over the next couple of months!

Saludos,

MEZCAL NEWS

MEZCAL EVENTS

• February 23rd, Women in Spirits Meet-Up, Chicago

• March 1st and 2nd, MezcalFest, Mexico City

• March 3rd-8th, 4 foro de Mujeres Unidos Por El Mezcal, Oaxaca

• March 3rd-April 7th, Anthropology of Agave and Mezcal, Online class

• March 8th, Maguey Spirits Tasting, Mesa Maguey Oakland

• March 20th, Bowl of ‘Zole, Denver

• March 31st, Mexico in a Bottle, Washington, DC

• April 10th-13th, Agave Heritage Festival, Tucson

• April 27th, Mexico in a Bottle, Chicago

• SAVE THE DATE: June 5th-9th, Mexico in a Bottle Durango

• June 27th-30th, Mezcal Culture Fest, Miami

SPOTLIGHT: TEQUILA INTERCHANGE PROJECT GRANT FUNDING

The Tequila Interchange Project (TIP) announces its first ever research grant to further its mission of preserving traditional practices and fostering sustainability in agave spirits production. TIP has put out an open call to undergraduate and graduate-level students in Mexico and the United States, who are conducting research directly or indirectly connected to agave spirits culture to apply for this grant.

It has also announced its first ever grant for conservation-focused non-profits working in Mexico whose work is directly or indirectly connected to preserving agave biodiversity and agave spirits culture.

Both grants are for $5,000 USD. Applications are due March 23rd and all information can be found on the TIP website.