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The Tequila Correction

Don Julio organic net sales declined 20.9% in the six months ended 31 December 2025. Casamigos declined 30.9%. Herradura declined 12% organically over nine months. These three brands, between them, represent the commercial heart of the super-premium tequila category as it existed two years ago.

Those numbers appeared in results documents published by Diageo and Brown-Forman in early 2026. They were noted. They were not adequately explained.

The explanation matters, because what is happening to super-premium tequila is not a temporary softness in a category that will recover when consumer confidence improves. It is a correction in a category that grew beyond its foundations, and understanding the difference between those two things is the difference between waiting for a recovery and preparing for a new baseline.

How the Category Got Here

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