According to GuestMetrics, consistent with Diageo’s renewed focus on the tequila category, Don Julio’s performance in on-premise has been strongly accelerating throughout the year, resulting in the brand being among the top share gainers in the overall spirits category in 3Q13.
“Based on our data, despite trends in on-premise being quite challenging throughout 2013, Don Julio has grown volume in on-premise about 8 percent year-to-date through September, showing strong acceleration throughout the year going from 2 percent growth in 1Q, to 8 percent in 2Q, to 15 percent in the most recent quarter,” says Bill Pecoriello, CEO of GuestMetrics LLC. “The on-premise growth of 8 percent is a bit more modest than the mid-teens growth Don Julio is experiencing in off-premise, but this is due to Don Julio growing off of a higher base in on-premise. Diageo has stated tequila remains a strategic priority since the departure of Jose Cuervo from its portfolio a few months back, and the strong performance of Don Julio indicates the renewed focus on the category is yielding results.”
“Looking at the specific spirits brands that have achieved the largest year-over-year gains in share of the overall spirits category throughout the year, Don Julio has displayed an impressive acceleration,” says Peter Reidhead, vice president of Strategy and Insights at GuestMetrics. “During the first quarter of the year, Don Julio achieved the 11th largest gain in category share, was the 5th largest share gainer during the second quarter only behind Fireball, Tito’s, Jameson, and Makers Mark, and during the most recent quarter, achieved the fourth largest gain in category share. Additionally, in looking at how Don Julio achieved this growth, it appears to be through a healthy balance of both increased velocity and distribution, which likely bodes well for future growth. Approximately 70 percent of its growth came from increased velocity, and the remaining 30 percent from gains in distribution.”
“In analyzing the several thousand spirits brands we track in our system, the only brands that were among the top 5 in terms of year-over-year gains in both distribution and velocity were Fireball, Tito’s, and Don Julio,” says Brian Barrett, president of GuestMetrics. “Furthermore, in looking at Don Julio’s distribution penetration among the various on-premise segments, our data indicates it is being carried by 51 percent of fine dining restaurants, 42 percent of bars and clubs, and 34 percent of casual dining restaurants. Given casual dining restaurants make up nearly 70 percent of the on-premise universe, this would seem to be further evidence that Don Julio could have a long runway for future growth.”
News and information presented in this release has not been corroborated by WTWH Media LLC.