Tequila is big business for our friends at Diageo, thanks in large part to one handsome, iconic celebrity in particular: Don Julio. According to the Motley Fool, tequila is the company’s largest segment in North America, with 34% of sales, and Don Julio’s organic volume was up a whopping 36% in 2018 financials, with net sales soaring 30% over 2017.
What is behind those incredible numbers? What is driving such strong demand among consumers? And, most importantly, how can your business leverage Don Julio’s growth and drive your sales with the same success?
For the answers, we turned to Rodolfo Aldana, Brand Director for Tequila Don Julio North America.
Breakthru: Why do you think Don Julio has grown so much recently?
Rodolfo Aldana: We are seeing several key factors, starting with our core variant, Tequila Don Julio Blanco, the base for which all of our tequila is crafted. [Ed: Blanco is up 40.2% over last year, according to Diageo.] Our Blanco has excellent mixability and is fantastic in cocktails, which we are strategically supporting with specific cocktail programming, most notably focusing on traditional cocktails from Mexico such as the Paloma. You will see us bring this to life across all our channels—from digital and social to experiential events—we always want to offer people true authenticity from our home in Mexico.
We also continue to see great success with our aged variants such as Tequila Don Julio 1942 and Tequila Don Julio 70 Añejo Claro. [Ed: those are up 28.4% and 93.9% over 2017, respectively, according to Diageo.] Don Julio 1942 continues to be a favorite among celebrities and nightlife enthusiasts and they continually share their love for Don Julio organically with millions of followers via their social media channels.
In addition to opportunistic sampling in the nightlife channel, Don Julio is capitalizing on some of the organic affinity for Don Julio 1942 by assembling an incredible network of influential DJ Ambassadors known as the 1942 Crew. World renowned DJs such as DJ Ruckus, DJ Politik and Eric Dlux serve as authentic advocates to invite people into the world of Don Julio 1942. These DJs are authentic fans of the product and help drive impactful awareness and visibility for Don Julio 1942 in the DJ booths at top nightclub establishments and events across the country.
What is it about Don Julio that you think consumers respond to the most?
Diageo has a network of account consultants across the country, whose roles include brand loyalty and education. They meet with mixologists and beverage managers on a daily basis to educate on our brands, host specialty dinners to provide consumers and spirits aficionados alike the opportunity to experience our portfolio.
In addition, we focus on media efforts to effectively communicate the rich history of the brand and maintain a robust experiential events calendar where we have the opportunity to meet our consumers in their world, whether serving up craft cocktails at a film or food festival or pulling up one of our vintage trucks to a concert to allow the opportunity for consumers to try the liquid and learn about the brand in a meaningful and authentic way. Bringing our story to consumers through these activations helps us to engage with consumers and attract new adorers to our brand.
We find that Tequila Don Julio’s diverse portfolio offers many excellent entry points with our six different age statements, ranging from Tequila Don Julio Blanco to Tequila Don Julio REAL, an Extra Añejo which has been aged between three and five years. While there is an increase in craft mixology with variants such as Blanco and Reposado to create both classic and innovative cocktails, our Añejos such as Don Julio 1942 and Don Julio 70 offer incredible taste profiles that are rich and complex, perfect for enjoying neat or on the rocks.
What about the role of celebrities in promoting Don Julio?
We have indeed seen a growing appreciation for Don Julio from a variety of notable personalities and we are deeply proud that they call upon Don Julio as their go-to choice in tequila. We are thrilled to share our brand, heritage and craft with all who want to have a more genuine celebration.
What's next for Don Julio?
Our tequila may be hitting an impressive stride, but it is our craft, credentials and integrity that will continue to set us apart. As the new tequila consumer continues to show a true appreciation for aging and the depth complexity in taste, we look forward to continued growth and see a great deal of opportunity for the category and Don Julio.
This interview has been edited and condensed for space.