As worldwide demand for mezcal surges, Pernod Ricard has joined the major drinks companies rushing to buy into the spirit.
The company has acquired a majority stake in Del Maguey Single Village Mezcal, the top selling mezcal brand in the United States. The purchase follows Bacardi's acquisition of a minority stake in Ilegal Mezcal in February and Diageo’s distribution agreement with Mezcal Union signed in 2016.
Mezcal is the lesser known cousin to Mexico's more popular spirit, tequila. While tequila uses 100% blue agave, mezcal is made from any agave plant. Mezcal is considered to have a smokier taste than tequila and has become an "it" spirit in mixology.
According to Euromonitor figures, mezcal is one of the fastest growing categories in the US. Between 2010 and 2015, Tequila and mezcal grew 30% by volume in the market – more than any other alcohol category other than Cognac – and faster than the global average of 22%.
Nielsen named mezcal as one of its “star performers” in the US on-trade for the 52 weeks to mid-July 2016, while IWSR figures show that global mezcal sales climbed to US$80 million in 2015, with US volumes soaring 279% from 2005-2015.
"We think that mezcal is just getting started in the US," Jeff Agdern, senior vice president of Pernod Ricard USA's new brand ventures division, told Fortune. "It is very much an enthusiast and mixologist category right now, but we see more consumers coming into this category every day."
Del Maguey Single Village was founded by entrepreneur Ron Cooper in 1995. He will remain with the brand, along with his management team, and continue to steer the vision for it. All of the operations at Del Maguey will also remain intact, a strategy Pernod Ricard uses when it partners with smaller brands.
According to Fortune, the investment in Del Maguey also "plays into Pernod Ricard's vision to sell more premium-priced spirits." The entry price for Del Maguey mezcal is around $US37, while some specialty items can cost nearly $US200.
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