Once considered a niche spirit on Indian shelves, tequila is undergoing a quiet revolution. What was once reserved for party shots is now being sipped slowly in elegant glasses across upscale bars and restaurants. At the forefront of this transformation is Don Julio, Diageo India’s flagship premium tequila brand, which entered the Indian market in 2023 and is quickly becoming the drink of choice for a new generation of discerning consumers.
In this interview, Outlook Traveller Eats speaks with Ruchira Jaitly, Chief Marketing Officer at Diageo India, about the cultural shift driving tequila’s rising popularity, the evolving tastes of Indian drinkers, and the brand’s efforts to build a refined tequila-drinking culture through innovation, education, and sustainability. From curated tastings to sipping rituals, from the bar scene in Indian metros to eco-conscious production techniques in Jalisco, Mexico—this is tequila’s moment. And India is ready.
Tequila consumption in India has traditionally been niche. What factors are driving its increasing popularity among Indian consumers today?
Tequila is the fastest-growing spirit in India, reflecting its rising global appeal. Don Julio’s entry into the Indian market in 2023 was a strategic move, driven by the increasing demand for tequila among discerning global Indians.
As a spirit, tequila embodies luxury—its meticulous production process and premium ingredients set it apart from other white spirits, making it a preferred choice for those seeking a refined drinking experience. India’s premium spirits market is thriving, fueled by an expanding urban middle class with a taste for exclusivity, many of whom are gravitating toward tequila.
Younger consumers are broadening their preferences beyond traditional favourites like whiskey and rum, drawn to tequila’s distinctive character and international prestige. In India’s bustling metropolitan cities, mixologists are crafting inventive tequila-based cocktails, cultivating a vibrant and experimental bar culture that resonates with adventurous drinkers, even as they discover the brilliance of the liquid with sipping tequilas like Don Julio.
India’s openness to global trends has further propelled tequila’s popularity. As the younger generation embraces diverse flavours, tequila is rapidly becoming a staple in upscale bars, restaurants, and social gatherings.
Are Indian consumers becoming more experimental with tequila, exploring reposado and añejo varieties beyond the usual blanco?
Blanco is often the starting point for those new to tequila. It offers a smooth, unaged, or lightly aged profile that blends seamlessly into cocktails like margaritas and is undoubtedly very popular.
However, Don Julio Reposado has outpaced Blanco in growth this year—an exciting shift driven by India’s increasing appreciation for tequila. More consumers are eager to explore complex flavours developed through barrel ageing, signalling a deeper engagement with the spirit. We’re also witnessing a rising trend of people savouring Reposado and Añejo neat or over ice, much like a fine whiskey, to fully experience tequila’s nuanced character.
Don Julio 1942, our most premium variant, is crafted in small batches and aged for a minimum of two and a half years. It has become the choice of true connoisseurs, valued for its exclusivity and craftsmanship. Among high-net-worth individuals and celebrities, 1942 holds a distinct status, serving as both a luxury indulgence and a statement of cultural cachet.
India has traditionally been a whisky-dominated market. How do you see tequila carving out its own space in the premium spirits category?
While whiskey continues to dominate India’s spirits market, we’re seeing a growing appetite for diverse and premium drinking experiences. Indian consumers are increasingly looking beyond traditional choices, driven by greater exposure to global cultures and evolving drinking trends. This shift mirrors what’s happening in the U.S., where tequila consumption has surpassed whiskey in growth, signalling a broader global movement toward agave spirits.
Availability plays a crucial role in this expansion. As a relatively new entrant in India, tequila—particularly premium brands like Don Julio, which entered the market in 2023—is still in the early stages of reaching a wider audience. With greater accessibility, more consumers are discovering and embracing tequila, whether as an introduction to the category or as a refined alternative to their usual drink of choice.
Tequila’s depth of flavour and meticulous craftsmanship set it apart from other white spirits like vodka or gin. For whiskey drinkers accustomed to richer, more complex profiles, our Añejo variant serves as a natural bridge, offering a depth that resonates with their palates.
Educating consumers remains a key focus for us. Our goal isn’t just to introduce tequila to India, but to ensure that consumers recognize and appreciate the highest quality expressions—understanding what makes a premium tequila truly exceptional.
With premium spirits gaining traction in India, are we seeing a rise in tequila-focused bars, curated tastings, and brand-led experiences?
As premium spirits continue to gain momentum in India, we’re witnessing a surge in tequila-focused experiences, from specialised bars to curated tastings and immersive brand activations. Consumers today are eager to explore tequila beyond the conventional shot, and we’re seeing a growing appreciation for its depth, craftsmanship, and versatility.
With Don Julio, we’re looking to not just educate but also shape this evolving tequila culture in India. Our Day of the Dead or Cinco De Mayo activations have been a standout example—bringing an authentic, immersive experience that celebrates tequila’s birth country, Mexico’s deep-rooted heritage. Our aim is to build a vibrant community of consumers who enjoy the product, as well as value our brand ethos. Through curated tastings, elevated cocktails, and storytelling, these activations have introduced Indian consumers to tequila’s rich traditions while positioning it as a premium choice for discerning drinkers.
Beyond brand-led experiences, India’s bar scene is also embracing tequila in a big way. More mixologists and bar programs are crafting sophisticated tequila-based cocktails, and we’re seeing an increasing number of venues offering dedicated tequila tastings, allowing guests to explore different expressions like Blanco, Reposado, and Añejo.
With this momentum, tequila is no longer just a trend—it’s becoming a mainstay in India’s premium spirits landscape.
As more Indians travel globally, how is international exposure influencing their preference for sipping tequila over traditional shots?
The global exposure gained by Indian travellers has significantly influenced their drinking preferences, leading to a notable shift from traditional tequila shots to savouring the spirit in more refined ways. As Indians journey across the world, they encounter diverse drinking cultures where tequila is appreciated not just as a party staple but as a sophisticated spirit meant to be sipped and enjoyed.
This international influence has sparked a growing interest in premium tequilas within India. Consumers are increasingly drawn to the rich history, diverse flavour profiles, and versatility that tequila offers. They are also more informed about spirits, their origins, distillation methods, and additives. This evolving appreciation positions tequila to take a leading role in India’s burgeoning premium spirits market.
Furthermore, the rise of cocktail culture in India has contributed to this shift. Skilled mixologists are crafting innovative tequila-based cocktails, incorporating local flavours and ingredients, which has broadened the appeal of tequila beyond its traditional consumption methods.
The increasing preference for sipping tequila reflects a broader trend of Indian consumers seeking more nuanced and premium drinking experiences, influenced by their global exposure and evolving palates.
Are there any upcoming trends in the global tequila industry that you see influencing the Indian market in the coming years?
Following global trends, tequila in India is evolving from a party staple to a luxury sipping experience, with consumers increasingly willing to invest in premium tequilas like Don Julio.
The premium tequila market in India was valued at $3.29 million in 2023 and is projected to reach USD 5.83 million by 2031, highlighting the category’s rapid expansion. In the near future, we can expect dedicated tequila festivals and curated pairing menus at restaurants, as a result of this.
Another significant trend is the rise of tequila-focused bars in major Indian cities, where mixologists are curating high-quality tequilas and innovative tequila-based cocktails for discerning consumers. India’s burgeoning cocktail culture mirrors global trends, with some of the most talented mixologists creating unique, spirit-forward drinks. It’s particularly exciting to see Indian mixologists experiment with local flavours and tequila, crafting cocktails that are both distinctive and deeply rooted in regional influences.
Sustainability is becoming a priority in spirits production. Are there any innovative techniques being used to make tequila production more eco-friendly?
Sustainability has become a significant focus in tequila production, with various innovative techniques being implemented to make the process more eco-friendly.
In 2021, Don Julio Blanco tequila became the first to receive the Environmentally Responsible Agave (ARA) Certification from the Tequila Regulatory Council (CRT) and the Government of the State of Jalisco, Mexico.
The ARA certification’s purpose is to assure consumers that the tequila they are drinking has been manufactured in an environmentally responsible and sustainable manner with no deforestation in the production process. This certification reiterates the tequila industry’s commitment to improve its environmental footprint, conserve and restore biodiversity, and care for natural resources, such as agave.
Given the long growth cycle of agave, how are producers planning for sustainability in the face of climate change?
At Don Julio, sustainability is at the heart of our tequila-making process. Given the long growth cycle of agave—often taking 6 to 8 years to mature—we are committed to ensuring its cultivation remains resilient in the face of climate change.
These days, producers are using ingenious agriculture techniques, like implementing water conservation measures and waste management strategies to reduce our environmental footprint. Agave fibres, a byproduct of tequila production, are repurposed for composting and sustainable packaging. Additionally, by integrating solar energy into the production process, producers are reducing carbon footprints and ensuring a more sustainable future for tequila.
How do changing environmental conditions influence the taste and quality of tequila?
Environmental changes significantly impact tequila’s taste and quality, as agave, much like wine grapes, absorbs characteristics from its surroundings. Shifts in temperature and rainfall influence sugar content, acidity, and complexity—drought conditions can enhance sweetness and concentration, while excessive rainfall may dilute flavours.
At Don Julio we are fortunate enough to have the highest level of quality control to ensure consistency in product, preserving the signature taste and quality of Don Julio tequila, regardless of shifting environmental factors.
Ultimately, while nature plays a role in shaping tequila’s taste, our dedication to craftsmanship ensures that every bottle of Don Julio maintains the rich, complex flavours that make it a benchmark for premium tequila.
