Over the past year, I have lost count of the number of picantes I’ve ordered at a bar. I am not the only one to have made this spicy tequila-based cocktail my go-to drink – it’s won the hearts of many across the country as agave-based spirits like tequila and mezcal have their moment in India, with cocktails like picante and paloma becoming a rage.
There was a time when Indian craft gin was ruling, but it’s now time for tequila to shine. According to a research report by Verified Market Research, the size of India’s tequila market, which was valued at USD 3.29 million in 2023, is projected to reach USD 5.83 million by 2031. We find out what is driving this shift in the white spirits category.
What Are Agave Spirits?
Distinct to the region of Mexico, these spirits are made from the agave plant grown there. Tequila, made from blue agave, can only be manufactured in the South American country’s Jalisco region and has a GI tag. There are basically five kinds of tequila whose flavours vary depending on the production method and ageing–blanco (silver), joven (gold), reposado (aged), añejo (extra aged), and extra añejo (ultra-aged). Mezcal, on the other hand, can be made from several types of agave and is produced in many regions of Mexico.
Bars and Cocktails
So high is the demand for agave based spirits and cocktails that bars focussing on them have mushroomed across Indian metropolises. There’s Los Cavos in Mumbai as well as Bengaluru, Mezcalita and Ribbon Room Bar & Tequileria in Mumbai, Mexicola in Goa, Miss Margarita by Arriba in New Delhi and Gurugram, Juju and Agave Bar at Aasmana at Ritz Carlton in Pune.
Set up about a year back, the Agave Bar at Aasmana Ritz Carlton in Pune boasts of the widest tequila and mezcal collection in the city–more than 30 types. They even have a tequila sommelier, Vedant Uday Shetty, who explains to the guests about these spirits and a cocktail menu crafted with them. He feels that the perception of tequila being consumed as shots is changing due to global exposure – it is now a part of upscale settings in countries from the West to the East.
“I’ve seen many people switch from whisky to tequila because of its flavour profile. Tequila is much more earthy and has a bit of an oak finish as well,” says Shetty. He points out people who are getting health-conscious prefer tequila because it is plant-based and has a relatively low calorie profile. At the bar, they do four tequila and two mezcal-based cocktails. “The most popular one is Quiote, which is Tequila reposado, mezcal, Aperol, grapefruit juice, chilli, yuzu juice, bitters, and grapefruit soda,” according to Shetty.
Tequila’s layers of flavour are going down well with Indian palates. Even in regular bars, the demand for cocktails made with these spirits is on the rise. Tarun Sibal, Chef and Entrepreneur, who owns Khi Khi in Delhi and Titlie in Goa, says that at both these bars, out of ten cocktails that they sell, at least four to five are tequila or agave-based. “There are primarily three cocktails that are driving this—the picante, paloma and margarita. Another drink which has caught the fancy of a lot of Indian guests is the Mezcal Negroni,” he says.
The tequila revolution is not just limited to bars. The spirit’s popularity gave rise to the country’s first agave club–Tulleeho Tequila Club. Vikram Achanta, the Founder and CEO of Tulleeho, a premier beverage education, training, and consulting company, felt the need to create one after he witnessed the popularity of the spirit spiral and noticed how people are moving away from taking just shots to sipping the spirit or opting for cocktails. “We saw the increased enthusiasm and excitement amongst tequila and agave spirits, and through the means of community building and creating a club, we wanted to educate and inform the consumer and the trade about this spirit,” he explains.
Premium Tequila Brands Entering The Indian Market
While tequila and mezcal spirits are available in the Indian market in a wide price range, consumers are not shy of shelling out big bucks for premium brands that have entered like Don Julio, Patrón, 1800, and KOMOS. Clase Azul Tequila ranges anywhere between INR 28,000 to more than INR 5 lakh for a bottle among its variants. KOMOS, which launched in Delhi and Goa last year and Gurgaon this year, retails between INR 26,000 and 90,000 among its four variants.
“The Indian consumer is open to paying a steep price for a premium brand because they are well exposed and travelled and don’t mind paying a price for a superior quality product,” says Achanta.
Celebrity Driven Brands
The number of celebrities investing in tequila brands is also driving the trend. From Hollywood actor George Clooney, basketball player, Michael Jordan and model Kendall Jenner to cricketer Yuvraj Singh, Indian actor Rana Daggubati along with musician Anirudh Ravichander and entrepreneur Harsha Vadlamudi back home—all have got tequila brands.
The trio, Daggubati, Ravichander and Vadlamudi co-launched Loca Loka tequila in Los Angeles, New York, and New Jersey in the U.S. and Singapore last year – becoming the first Indians to launch their own tequila brand. It’s expected to come to India in the second half of this year and in other markets like the UK, Dubai, Philippines and Indonesia.
When asked why he got into it, Indian actor and Co-Founder – Loca Loka Rana Daggubati said “There was always some kind of fascination towards alcohol – tequila, nightlife, celebrations and I was always wondering how I can move from the entertainment world into something else. Harsha was the one who first thought of this and then Anirudh also came on board, so we all went to Mexico to get things started.”
He says that logically it made sense for them to the start from the U.S. and then move on to other Asian markets before entering India because the experimentation would already have been done in these countries. Moreover, the American market is seen as the one from where global trends trickle down to other countries.
“We want to enter India with a large offering and not go slowly state by state because this is the first tequila created by Indians that’s being sold abroad and then coming into the country. Tequila has become part of new social culture,” says Daggubati.
The popularity of these spirits is not just a passing trend but here to stay as a new generation of agave aficionados gets down to sipping and tasting it in all its variants.
