William Grant & Sons is latest spirits group to invest in Tequila

British spirits group William Grant & Sons is the latest to invest in agave spirits after acquiring a distillery in Mexico.

The Glenfiddich whisky maker has purchased a distillery in Mexico to support the growth of Milagro Tequila and drive innovation.

Set up by Danny Schneeweiss and Moy Guind in 1998, Milagro Tequila is made with blue agave from the Jalisco highlands and is distilled using both pot and column stills. The Tequila undergoes a 36-hour slow roasting process in traditional brick ovens. The range consists of six expressions: silver, reposado and añejo bottlings across the “core” collection and the Select Barrel Reserve lines.

The acquisition comes after sales of Tequila have soared in the US and UK over the past few years, and accelerated in the retail sector during lockdown. Data from market researcher Nielsen has shown that spirits sales are growing faster than any other category, rising by just over a third (33.5%) between 7 March and 25 April.

Tequila growth has been consistently on the rise, at 55% for the 8-week period and 69% in the one week period leading up to Cinco de Mayo 2020.

Milagro has reported double-digit annual growth in the US since 2015, reaching more than 300,000 nine-litre cases yearly.

Simon Hunt, William Grant & Sons’ chief executive, said the firm has been seeking its own Tequila production facility for the past two years.

“We’re excited by this move to build a strong platform for further innovation that will help us take full advantage of global opportunities in the fast-growing premium Tequila category. It demonstrates our commitment to investment in global growth despite the impact of the coronavirus pandemic.”

Jonathan Yusen, William Grant & Sons’ president and managing director, Americas, said: “Milagro has always been an exciting brand within our award-winning portfolio, and with this distillery it is now a clear long-term priority for our global business, alongside such iconic premium brands as Glenfiddich single malt Scotch, Hendrick’s gin and Tullamore Dew Irish whiskey.

“This acquisition allows us to manage our production more closely, ensuring the long-term quality and consistency of our silver, reposado and añejo offerings, while bringing our innovation expertise to agave-based spirits.”