Ex-Bacardi CEO Says Tequila Market Needs a ‘Shake-Out’; Too Many Brands Without ‘Any Reason to Exist’

(Photo: Mijenta Tequila/Facebook)

Former Bacardi CEO and co-founder of Mijenta Tequila Mike Dolan recently shared some choice thoughts about the overcrowded state of the tequila industry.

According to Dolan, an oversaturation of glitzy, celebrity-owned brands is trivializing the market for the “rare” handful of authentic distillers.

“A friend of mine at a conference in New York, he does a newsletter on alcohol and beverages. He told me ‘the rumor is there will be a shake out in Tequila brands and he said what do you think?’ I said there should be,” Dolan told The Spirits Business.

“A lot of them don’t have any reason to exist. It’s just an actress, a TikTok star. It’s trivial. People are not buying it. They are not drinking. A lot of these fancy brands there’s no turnover. They sell one bottle and no one asks for it.”

As the U.S. tequila market climbs higher year after year, some insiders think that the trend is beginning to buckle under pressure. Many trace the inflection point back to 2017, when George Clooney sold Casamigos to spirits giant Diageo for a headline-worthy $1 billion.

Sales volume of tequila in the United States from 2004 to 2022, in 1,000 9 liter cases. (Photo: Statista)

In years since, the celebrity tequila craze as we know it today was born, spearheaded by everyone from Dwayne “The Rock” Johnson to Kendall Jenner. Though several stars have capitalized on the zeitgeist to runaway success, not everyone has been so lucky.

Much of this new generation has bet big on additives; according to Tequila Matchmaker, around 70% of tequila brands in circulation. As a result, liquor store shelves have been swamped with remarkably similar products that primarily rely on name recognition.

“Is there a reason for the brand to exist? It also takes a lot of expertise, compared to say gin and vodka – you could make those in your bathtub, people used to make them in the bathtub – you can’t make Tequila in your bathtub. It’s much more complicated, it’s risky and hard to make. You need people that really know what they’re doing. Unless you’re plugged into that sphere with master blenders, distillers, it’s hard for a novice to find a way,” said Dolan.

Conversely, it could be argued that this overcrowding works to the benefit of additive-free, “old school” brands like Dolan’s Mijenta Tequila.

Surging interest in agave spirits has brought a wave of consumers into the market, many of whom are now switching up to sustainably produced, premium alternatives. Combined with the nascent popularity of mezcal, once-niche spirits are finally having their moment in the spotlight — largely thanks to the free publicity afforded by their big-name competition.

Read More: 

WHO Proposes Higher Taxes on Alcohol, Dredging up Legislative Debate Among Winemakers

Laws When You’re Drinking Claws? White Claw Unveils Alcohol-Free Electrolyte-Infused Lineup

6 Canned Tequila Cocktails Perfect for Shaking Up The Holidays

Here at Tequila Raiders, we do more than write about current events in tequila. We are the only media property reviewing tequilas and aggregating the scores and reviews of other significant voices in the tequila world in one place. If you’re interested in getting a shot of tequila in your morning email, sign up for our Deal of the Day newsletter