• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia

Trendingnow

1

Corporate America has been draining the world's water. Matt Damon's new campaign calls on Gap, Starbucks, and Amazon to help give it back

2

When SpaceX starts trading, some 'shareholders' will discover they own nothing at all

3

Analysts expected oil to surge above $200 but China has quietly kept prices half of that—and can’t for much longer

1

Corporate America has been draining the world's water. Matt Damon's new campaign calls on Gap, Starbucks, and Amazon to help give it back

2

When SpaceX starts trading, some 'shareholders' will discover they own nothing at all

3

Analysts expected oil to surge above $200 but China has quietly kept prices half of that—and can’t for much longer
Retailtequila

Tequila producers take a shot at flavored liqueurs

By
John Kell
John Kell
Contributing Writer and author of CIO Intelligence
Down Arrow Button Icon
By
John Kell
John Kell
Contributing Writer and author of CIO Intelligence
Down Arrow Button Icon
August 22, 2015, 10:00 AM ET
Courtesy of Beam Suntory/Patron

The key to a really good tequila is a pepper finish – not a burn, but a little hint of the spice.

But increasingly, tequila-based beverages are introducing new flavor profiles to challenge that formula. In recent years, producers like Patrón, Sauza, and Avión have created tequila liqueurs with flavors like mango, cocoa, and cucumber, expanding a subcategory that could propel the category to new heights. It also hints at a tasty revolution that’s already swept across the vodka category and is currently driving demand for American whiskeys.

Since 2012, Patrón has launched four new tequila liqueurs, including dark cocoa and lime variations. Beam Suntory’s Sauza, which two years ago began to experiment with sparkling margaritas, this summer debuted a cucumber chili tequila. And Pernod Ricard-backed Avión has an espresso variation that founder and chairman Ken Austin didn’t even originally want to make, but which was created to be agave-forward (to ensure the tequila taste remains strong).

Austin calls Avión Espresso the gateway to the brand: “If someone pays $25 for a bottle of Avión Espresso and they say, ‘It is amazing,’ they will be more likely to buy the pricier variations.”

The experimentation comes at a time when the tequila industry already generates $2.1 billion in supplier revenue in the U.S. alone. Among spirits brands, tequila’s growth has recently exceeded the performance of the vodka, rum, and gin categories. Much of that growth has come from higher-priced spirits, which generate better margins and are the core focus for many spirits makers. That trend was recently chronicled in a Fortune feature, “Sipping pretty: Tequila’s global ambitions.”

Debuting tequila flavors can be a less lucrative business strategy, however. Price points are often lower as the liqueurs are made with lower alcohol by volume. But it is hard to ignore the power of the flavor revolution: Roughly one out of every 10 spirits sold in the U.S. are flavored, according to the Distilled Spirits Council of the United States, known as Discus.

 

Flavors are part of why the whiskey category is performing so well, according to Discus. They help introduce the beverage to new drinkers and often attract more women to a category that has traditionally been male-driven, experts say. The industry sold 2.8 million cases of flavored whiskey in 2014, as honey-based whiskeys and newer cinnamon concoctions flew off shelves.

But too much tinkering can leave a bad aftertaste. For years vodka producers relied on flavored spirits to help bolster the category. Many beverage experts say they got a little too experimental, launching variations like cotton candy, birthday cake, and even a bacon vodka. Consumers have been turned off: Flavored vodkas actually shed volume in 2014.

Tequila makers say they are learning from vodka’s missteps, promising not to stray too far from the natural flavor that comes from the blue agave plant that is the base of all tequilas.

“A lot of brands introduce flavors as a way to treat the symptoms rather than the disease,” says Patrón chief marketing officer Lee Applbaum. “You get a short-term bump in volume but not a long term opportunity.”

Applbaum says Patrón has been more purposeful about how it tackles tequila liqueur experimentation. Patrón introduced two flavored tequilas in 1992, but it took another 20 years before the spirits company launched another variation. Some of Patrón’s liqueurs are meant to be consumed in the form of a shot, or as a mixer for a cocktail.

At Beam Suntory, Claire Richards, senior director of tequilas, says her company focuses on those two “occasions” when it thinks of flavors.

“It is important to us that we use flavors that help with the naturally agave-forward liquid,” Richards says. “We won’t go out and innovate on flavors that don’t fit into that profile.”

About the Author
By John KellContributing Writer and author of CIO Intelligence

John Kell is a contributing writer for Fortune and author of Fortune’s CIO Intelligence newsletter.

See full bioRight Arrow Button Icon

Latest in Retail

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Fortune Secondary Logo
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • World's Most Admired Companies
  • See All Rankings
  • Lists Calendar
Sections
  • Finance
  • Fortune Crypto
  • Features
  • Leadership
  • Health
  • Commentary
  • Success
  • Retail
  • Mpw
  • Tech
  • Lifestyle
  • CEO Initiative
  • Asia
  • Politics
  • Conferences
  • Europe
  • Newsletters
  • Personal Finance
  • Environment
  • Magazine
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
  • Group Subscriptions
About Us
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • Pinterest icon

Latest in Retail

Warehouse workers with robot
SuccessJobs
Walmart has a message for its 2.1 million workers: AI is going to improve your job, not take it: ‘Technology will power our future’
By Emma BurleighJune 12, 2026
3 hours ago
Agility Robotics Chief Executive Peggy Johnson speaks on stage at Brainstorm Tech 2026 in Aspen, Colorado.
AIBrainstorm Tech
Tech leaders argue AI’s real future Is task augmentation, not mass layoffs
By Sebastian HerreraJune 11, 2026
1 day ago
visa
AIVisa
Visa thinks it’s a great idea for AI agents to shop and pay for things without human approval
By Barbara Ortutay, Ken Sweet and The Associated PressJune 11, 2026
1 day ago
South Korea fines Coupang record $409 million for data breach
AsiaCoupang
South Korea fines Coupang record $409 million for data breach
By Jaehyun Eom, Shinhye Kang and BloombergJune 11, 2026
1 day ago
Honda recalls nearly 900,000 cars thanks to rear suspension problems
RetailHonda
Honda recalls nearly 900,000 cars thanks to rear suspension problems
By The Associated PressJune 10, 2026
2 days ago
Jamie Laing thinks tomorrow’s Fortune 500 will be built by creators. He might be right 
C-Suitecreator economy
Jamie Laing thinks tomorrow’s Fortune 500 will be built by creators. He might be right 
By Sam BirchallJune 10, 2026
2 days ago

Most Popular

Corporate America has been draining the world's water. Matt Damon's new campaign calls on Gap, Starbucks, and Amazon to help give it back
Environment
Corporate America has been draining the world's water. Matt Damon's new campaign calls on Gap, Starbucks, and Amazon to help give it back
By Catherina GioinoJune 9, 2026
3 days ago
When SpaceX starts trading, some 'shareholders' will discover they own nothing at all
Investing
When SpaceX starts trading, some 'shareholders' will discover they own nothing at all
By Jim EdwardsJune 12, 2026
9 hours ago
Analysts expected oil to surge above $200 but China has quietly kept prices half of that—and can’t for much longer
Energy
Analysts expected oil to surge above $200 but China has quietly kept prices half of that—and can’t for much longer
By Sasha RogelbergJune 10, 2026
2 days ago
Current price of oil as of June 11, 2026
Personal Finance
Current price of oil as of June 11, 2026
By Joseph HostetlerJune 11, 2026
1 day ago
American taxpayers have spent $33 billion on sports stadiums. They got fewer seats—and higher prices
Success
American taxpayers have spent $33 billion on sports stadiums. They got fewer seats—and higher prices
By Catherina GioinoJune 11, 2026
1 day ago
Meet the SpaceX employees who are set to become multimillionaires thanks to its IPO: from execs to even welders
Success
Meet the SpaceX employees who are set to become multimillionaires thanks to its IPO: from execs to even welders
By Preston ForeJune 11, 2026
1 day ago

© 2026 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.