Don Julio Tequila Sales Soar in Spite of Lawsuits, Trade Tensions and Declining Consumption

(Photos: Diageo)

Few success stories have baffled expectations quite like Don Julio tequila over the past few years.

A regular sight in music videos, red carpet appearances and high-profile endorsement deals, Don Julio has emerged as the single biggest name in the “ultra-premium” tequila category — a loosely defined, though widely used phrase usually referring to glitzy bottles with triple-digit price tags. Think of it as more of an aspirational vibe than a product genre. The kinds of tequilas surrounded by sparklers at the club, gifted to friends and relatives inside ornate gift boxes on special occasions. It’s a niche that the brand has carved out with resounding results. So much so that you’d be easily mistaken for thinking that Don Julio has always been at the top of the game.

The truth is a little more complex. According to The Spirits Business’ Brand Champions 2025 report, sales of the tequila brand soared by 28.2% between 2023 and 2024. Those numbers have only grown with time. Five years ago, Don Julio was selling less than 2 million cases annually; this year, the brand is on track to sell nearly 5 million.

The billion-dollar triumph is an anomaly, to say the very least.

The liquor industry has been rocked by a tornado of headwinds over the past few years, most of which have been attributed to declining consumption among the Gen-Z cohort (tequila’s favored demographic), trade tensions and inflation. Diageo, the owner of both Don Julio and George Clooney’s Casamigos, has been hit particularly hard. The conglomerate’s stock price has been cleaved in half since its peak in 2020, leading the company to sell off brands and cut jobs as it forges a new path forward.

The company is simultaneously fending off three class action lawsuits accusing Don Julio and Casamigos of containing less than 100% Blue Weber agave. Diageo says that the claims are “wholly without merit” as it awaits potential trials in New York, California and Florida.

So why, against all odds, has Don Julio won the hearts of consumers?

The marketing and partnerships team at Diageo deserves all the credit. Over the past year, Don Julio has blitzed stores with nearly a dozen headline-worthy releases, many of which have capitalized on viral trends of the day.

In January, the tequila maker joined forces with Popeyes for a limited-edition meal complete with a reposado-marinated chicken sandwich, spicy tequila wings and a strawberry hibiscus mocktail. The perfect makings of a TikTok sensation. We were among thousands who lined up across the country for a taste, wading through the crowd at 10 am on a cold Friday morning for a takeaway bag of — what turned out to be — fairly standard fast food fare.

Limited-edition twists on the brand’s high-end 1942 bottling have proved to be another avenue for success. Don Julio has reimagined the tall-and-slender silhouette in honor of the Chinese New Year and the Super Bowl, all while rolling out 50-milliliter minis that resemble oversized acrylic nails. Other collaborations include a team-up with DJ Peggy Gou and a quintet of Don Julio 1942 NFTs that went up for auction at $35,000.

Elsewhere, Don Julio has signed on as the official tequila of the Oscars afterparty and built a “multi-sensory” tasting experience and museum exhibit in the heart of New York City. Apple Vision Pro users can indulge in a behind-the-scenes tour of the brand’s production process, highlighting the harvesting, cooking, distillation and aging of Don Julio’s products.

All said and done, the brand has evidently invested millions, if not tens of millions, into a comprehensive marketing sweep. The breadth of the strategy is unprecedented, rivaled only by industry giants like Coca-Cola and McDonald’s. Picture it like this: In 2025, a consumer can walk from the liquor store to the Apple store, then to the museum and the fast food joint, theoretically encountering a unique piece of co-branded Don Julio content at every contact point.

In an era of relentless competition, Don Julio has positioned itself perfectly to cut through the noise. No doubt that other spirits brands will soon take note.