The History of Tequila In The U.S. - Quench Report Issue #16

PLUS: Campari Strategy Day, TRIP raises $40m, Hot Jobs and more

Author

Matt Rice
November 17, 2025

Welcome to Issue #16 of The Quench Report, the newsletter that raises a glass and delivers the latest and greatest in Beverage Alcohol and the broader Beverage category.

What’s on tap for today:

  • 🍸️ Tequila Race - The recent history of the top Tequila Brands in the U.S.

  • 🥃 Takeaways Campari Strategy Day - Big bold moves and a temporary M&A timeout

  • 🆕 TRIP raises $40m - From CBD pivot to $300M valuation in functional beverages

  • ♨️ Hot Jobs - Career opportunities bubbling up in beverages

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WHAT’S ON TAP - UPCOMING

📊 Nov 18
• Nielsen data through Nov 8
• Circana data through Nov 9

Nov 20
• Initial Jobless Claims

Dec 3
• Morgan Stanley Global Consumer & Retail Conference - Celsius

Dec 4
• Brown-Forman Q2 FY’26 Results

🍸️ RECENT HISTORY OF THE TOP TEQUILA BRANDS IN THE U.S.

Tequila may have lost its "fastest-growing category" crown, but the past two decades tell a fascinating story of premiumization and patient brand-building (and indeed a few celebrity-backed brands)

Want to see how the top brands have evolved over time? Check this out 👇️ 

🧠Our Thoughts

Long Live Cuervo: The throne remains unthreatened. Jose Cuervo has dominated for over 30 years, with a gap to #2 that has never dipped below 1 million cases.

Premiumization is Real: The chart tells the story, consumers consistently traded up over time, reshaping the category from bottom to top shelf.

Patron: The 20-Year "Overnight" Success: Despite industry folklore, Patron didn't rocket to the top. It has been a top-three brand for nearly two decades. Patron had a slow, methodical climb to its #2 position (until this year).

Don Julio: The Actual Rocket: If anyone earned the "overnight success" label, it's Don Julio. Barely top-20 a decade ago, now the #2 tequila in America.

🥃 CAMPARI STRATEGY DAY KEY TAKEAWAYS

Campari's annual Strategy Day is the Super Bowl for strategy nerds, and unlike the actual Super Bowl, this one stayed competitive all the way through.

Here's what stood out:

Cyclical vs. Structural Headwinds - While most global competitors blame broad "cyclical" pressures, Campari quantified the split, showing exactly how much pain is temporary vs. a foundational shift:

Portfolio Evolution Since 2001 - A clear visual illustrating how Campari has systematically enhanced its brand and portfolio mix over the past two decades:

The Occasion Shift - Consumers are going out earlier and leaving sooner, a global trend reshaping on-premise strategy. This isn't just a U.S. phenomenon. This is a powerful consumer insight how consumer occasions are shifting across the world:

The Debt Reality - At 3.6x debt/EBITDA recently, Campari's leverage is high in this environment. Expect an extended pause in major M&A while they pay down their debt:

If you aren’t regularly reading industry strategy day decks, you should be. Check out Campari’s here.

🆕 TRIP RAISES $40M on $300M Valuation

The headline: TRIP, the calming beverage brand launched six years ago, has closed a $40M round at a valuation exceeding $300M, the latest signal that investors continue to be bullish on functional beverages displacing traditional soda and alcohol.

What most people missed: TRIP was a CBD-only brand until the summer of 2024. Their entire business has pivoted to include functional drinks over the past 16 months, and they haven't looked back.

Check out their portfolio evolution over time here: 👇️ 

🧠Our Thoughts

Numerous news outlets are reporting their CY’25 Net Sales at nearly $100M - meaning the brand was valued at ~3x Net Sales. That is at least a half-turn below (if not more) what we'd expect for a functional brand with this trajectory and at this stage. Worth noting as other brands eye fundraising in this space.

The Pivot Playbook: TRIP's successful strategic shift won't go unnoticed. Expect more brands to consider "TRIP-like pivots" into functional over the next 12 months as leadership teams ask: Should we be doing this too?

THIS WEEK’S HOT JOBS IN BEVERAGES

These roles came to us via personal recommendations (not public job boards). Want your open role featured? Email: [email protected] 👇️ 

THANKS FOR READING

The Quench Report is a free weekly newsletter from Thirsty Insights, a beverage alcohol consulting company that serves top clients in strategy, insights, and analytics.

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