Tequila, RTDs Driving Spirits Volume Growth At Retail
While the overall beverage alcohol category has remained tepid in recent months, select segments like Tequila, spirits RTDs, and non-alc offerings continue to drive growth. There were three Tequilas among the fastest-growing spirits brands by dollar value in NielsenIQ channels in the four weeks through September 5, including Cazadores (Bacardi), Lunazul (Heaven Hill), and Lalo (Fifth Generation).
According to Impact Databank, Cazadores nearly doubled in size in the U.S. from 2020-2025, and this year it’s poised to cross the 1-million-case mark. Earlier this summer, Cazadores extended with a Pineapple-infused Tequila retailing at $22 a 750-ml. “Pineapple was a natural choice for the brand, driven by its growing popularity in cocktail culture and deep roots in Mexican cuisine and celebration,” said Jay Needham, Bacardi’s senior global brand director for Cazadores and agave spirit.
Lunazul has grown at 40% annually in the past five years and is nearing 2.3 million cases. The brand recently unveiled a “Once in a Lunazul” campaign in tandem with fashion label Luar that gained exposure at New York Fashion Week. Lalo, meanwhile, has continued to soar after being acquired by Tito’s vodka owner Fifth Generation last year. Lalo is cruising toward a quarter-million cases, with four-week dollar growth in NielsenIQ channels at 48%.
While total prepared cocktail volume at retail has been dragged down by malt-based offerings, spirits RTDs continue to go strong, with volumes up 16% over the past month, running slightly ahead of dollar sales. The fastest-growing RTD labels in dollar terms continue to be Surfside (Stateside), Super Lyte (Stateside), Sun Cruiser (Boston Beer), Cutwater (A-B), and Buzzballz (Sazerac).
The non-alc segment also continues to be a bright spot across spirits, wine, and beer, with dollar sales for non-alc expressions from those categories rising 21%, 18%, and 8% respectively in the past four weeks.
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