$7,500 for tequila? The Cinco de Mayo staple has become a super-premium spirit.

By Charles Passy

'As more consumers make tequila their spirit of choice, we've seen them gravitate towards high-quality, premium tequilas,' Patrón exec says

Getting ready to celebrate Cinco de Mayo with a shot of tequila? You might have to dig deep into your wallet if you want to do it in grand fashion.

Granted, the Mexican holiday on May 5, which commemorates an important military victory in the country's history, doesn't demand pricey celebrations. But in any case, high-end tequilas, as in those priced above $100 a bottle, have increasingly found their way onto liquor-store shelves and on restaurant and bar menus in recent years.

And in some cases, brands are touting offerings of the classic Mexican sip that run well above $1,000.

Clase Azul, a 27-year-old tequila maker known for its premium offerings and decorative bottles with handmade designs, has some expressions that cost as much as much $6,340 apiece - specifically, a limited-edition Master Artisans series of tequila aged in a variety of sherry casks. If you're looking for the full set of three Master releases, be prepared to plunk down almost $20,000.

Newer brands are also upping the ante. Tequila Komos, which launched a few years ago, has bottles that start in the low triple digits. But its latest offering, a release dubbed XO that represents what the brand calls its "ultimate blend," runs $1,999.

And let's not forget Patrón, the tequila that helped establish the spirit's luxury potential more than 30 years ago when it started releasing bottles for a then-unheard-of price of $37. Today, the brand has entry-level bottles starting at around $60. But it also offers luxury releases, such as its Patrón en Lalique bottles, made in collaboration with the crystal producer Lalique, that have a suggested retail price of $7,500.

"As more and more consumers make tequila their spirit of choice, we've seen them gravitate towards high-quality, premium tequilas," said D-J Hageman, vice president of marketing for Patrón in North America.

The statistics certainly bear out what Hageman is saying. Overall, the tequila and mezcal category has seen robust growth of 578% over the last two decades, based on supplier revenue, according to the Distilled Spirits Council of the United States (DISCUS). But the highest-priced tequila/mezcal sub-category, what DISCUS calls "super-premium," has grown by 2,141% during that same time.

What's behind the fervor for wallet-busting tequila? Lots of factors, say industry professionals and observers.

Begin with the idea that premiumization has become par for the course throughout the spirits industry. If anything, tequila brands are just taking their cue from Scotch and bourbon brands, which have made $100-plus bottles increasingly common. In short, a bottle of booze has become a modern-day status symbol.

"These things have now become real luxury items," said Noah Rothbaum, a spirits authority and author of the forthcoming "Whiskey Bible."

Still, for generations, tequila had something of a bottom-shelf reputation in the U.S. It was a sip known primarily for consuming in shot form with salt and a wedge of lime, or mixed in a neon-green-colored frozen margarita.

But part of what changed, experts note, is that the tequila industry itself changed. As in, it started offering and promoting more expressions with extra aging in wood barrels and other hallmarks of refinement.

In fact, in 2006, the industry created an entire new category of tequila - extra añejo ("extra old") - aged for at least three years. More recently, it has promoted another special style, called cristalino, that is filtered with charcoal.

And yet, part of what makes tequila so appealing, say those in the know, is the sip is almost always associated with good times and a party-worthy mood, even at its most expensive. That's not quite something you can easily say about a bottle of single-malt Scotch.

"The dynamic of tequila is much more approachable," said Lander Otegui, chief marketing officer of Proximo, the company known for being behind Jose Cuervo tequila as well as several other tequila brands. Naturally, several of those Proximo labels offer pricey tequilas - from a Reserva de la Familia by Jose Cuervo Artist Box Series bottle for $190, to a Maestro Dobel 50 Anniversary Series one for $950.

Andrea Cornwell, beverage director for Ocean Prime, an upscale steak-and-seafood chain that offers an extensive list of pricier tequilas, is fond of quoting what a guest once said when she poured him a shot: "It smells like vacation."

At Ocean Prime, some of the pricier tequilas go for anywhere between $30 to $80 a pour. "We try to stay under $100," Cornwell said.

Similarly, Jajaja Mexicana, a Mexican chain that specializes in vegan fare and also has a robust list of tequilas, has plenty of pours for $30 and up.

"People do buy this," said Koorosh Bakhtiar, one of the chain's owners. "They want to try the tequilas and see what differentiates them."

Indeed, some of the brands behind these expensive tequilas tout their unique flavors. Consider this description of one of the Maestro Dobel 50 Anniversary bottles: "With notes of honey, dried fruit, chocolate and tobacco, the long barrel-aging provides a smooth and sweet liquid with a slightly bitter, yet exquisite aftertaste."

Still, Phil Bayly, a noted tequila expert and one of the authors of the newly released "Tequila Ambassador V.O." book, said some of the pricier offerings are too smooth and refined for his liking. He argues that tequila should have that "full flavor of agave," referring to the plant that goes into making the spirit.

Then there's this basic question: How much is too much for a bottle of tequila?

John Paul DeJoria, the entrepreneur who was behind Patrón (and later sold the brand to Bacardi for $5.1 billion), is now looking to celebrate tequila as a more affordable sip. He's recently helped launch Bandero, a tequila that can retail for $50 and under.

DeJoria said the liquid is good enough that he could easily charge more. But that's not his goal.

"I want everyone to afford it," he said.

-Charles Passy

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05-05-24 1101ET

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