Additive-Free Tequilas Gain Popularity With Health-Conscious Millennials

The agave category continues evolving upscale as consumer interest grows in spirits free of additives.

Boutique Wines, Spirits, & Ciders in Fishkill, New York carries 32 additive-free Tequila SKUs (selection pictured) that are part of the Additive Free Alliance from Tequila Matchmaker.
Boutique Wines, Spirits, & Ciders in Fishkill, New York carries 32 additive-free Tequila SKUs (selection pictured) that are part of the Additive Free Alliance from Tequila Matchmaker.

Free of glycerin, oak extracts, caramel coloring, and sugar-based syrups, additive-free Tequila is the latest trend at the crest of the category’s tremendous growth wave. Health-conscious consumers are using platforms like the app Tequila Matchmaker (TMM) as demand for transparent labeling information grows among drinkers of agave spirits. “Every Tequila nerd in the world at this point is basically using the Tequila Matchmaker app,” says Mike Moreno Jr., vice president of Moreno’s Casa Tequilera & Liquors in Chicago. “What TMM has done for the industry is astronomical. It gives so much detail on what you are drinking. Some retail accounts won’t order a product until looking into what Tequila Matchmaker says. TikTok is also blowing up these brands.”

Many consumers are looking for gluten-free, low-calorie, and natural products. “Additive-free Tequila hits all those marks,” Moreno says. “Many people drinking additive-free Tequila consider themselves purists. Why drink a Tequila with additives and added sugars that will give you a hangover when you can have a clean Tequila?”

Millennials lead the charge. “Anyone between the ages of 25-45 is the key demographic for additive-free Tequilas,” Moreno says. “You have all of these people, including retailers, online talking about convincing people to buy lesser-known, all-organic brands. You’re seeing sales drastically change.”

The additive-free Tequila trend began taking hold during the Covid-19 pandemic. “People had more money to spend,” he says. “They were willing to trade up. People were home more, and everyone became their own mixologist during the pandemic. They were looking for products they otherwise didn’t have before.” Consumer education is integral to driving awareness. “Education is super important, so we’ll have seminars where customers can come in and learn about the product,” Moreno says. 

Moreno’s Casa Tequilera & Liquors in Chicago stocks 70 additive-free Tequila SKUs, including fast-selling brand Alma del Jaguar (pictured).
Moreno’s Casa Tequilera & Liquors in Chicago stocks 70 additive-free Tequila SKUs, including fast-selling brand Alma del Jaguar (pictured).

Moreno’s carries about 70 additive-free Tequila SKUs ranging in price from Cimarron Blanco ($23 a 750-ml.) to Código 1530 Moreno’s Extra Añejo Edition Double Cask Cabernet/Spanish Sherry ($400 a 750-ml.). Most additive-free Tequilas at Moreno’s are around $60 a 750ml. Top-selling brands include G4 Tequila (ranging from $50 for the Blanco to $300 for the limited-edition Extra Añejo), Cascahuin (ranging from $45 for the Blanco to $150 for Añejo), and Alma del Jaguar ($50 for the Blanco; $58 for the Reposado). “These brands fly off the shelves,” Moreno says. “Even the distributors can’t keep up with it. I just brought in Alma del Jaguar, and based on our projections, this looks like it is going to be one of our top-selling additive-free Tequilas.”

While some luxury spirits that saw sales spikes during Covid are now experiencing downturns, additive-free Tequilas are growing at double-digit rates. “Sales are absolutely through the roof,” Moreno says. “It’s easily 20%-25% national growth year-over-year right now.”

Similar retail trends are being experienced at Boutique Wines, Spirits, & Ciders in Fishkill, New York. “These days, people are more interested in what goes into their bodies,” says Boutique Wines co-owner Gennaro Flori. “As this trends with food, it has started to trend in the beverage space. Millennials seem to be the ones most interested in the category. In the high-end aged Tequila space, we are starting to see a lot of crossovers with Bourbon, rye, and other whisk(e)y drinkers.”

Contributing factors to the growing segment at Boutique include the TMM app and TikTok influencers such as Lucas Assis. “People have more access to the information they desire, and there is more transparency,” Flori says. “There are also lots of groups on Facebook and Reddit chatting about the space daily.” 

Boutique Wines carries 32 additive-free Tequila SKUs that are part of the Additive Free Alliance from Tequila Matchmaker. While most 750-ml. bottles of additive-free Tequila at the Boutique Wines cost between $40-$150, prices range from $22 a 750-ml. of Arette Clásica Blanco to $600 for a 750-ml. of El Tesoro 85th Anniversary Edition Aged in Booker’s Bourbon Casks. The top-three selling additive-free Tequila brands at Boutique are Arette Clásica Blanco, Cimarron Blanco ($32 a liter), and La Gritona Reposado ($43 a 750-ml.). “Our strategy involves hand selling,” Flori says. “Talking to customers and using the TMM app are the starting points. After assessing a consumer’s interest and knowledge level, we can make suggestions and help educate. Last spring, we also hosted an agave-only tasting, which we plan to make an annual event. Not only could consumers ask questions to industry professionals about the products, but we also offered educational guided tastings as well as a cocktail class.”

Additive-free Tequilas are poised for long-term growth. “Social media sites like Reddit and Facebook have groups of thousands of people chatting about additive-free Tequila, and TikTok and Instagram have dozens of influencers with big followings chatting about the space,” Flori says. “The issue I see is supply won’t keep up with demand. Expect prices to climb significantly on top brands. New brands will pop up. New distilleries will be built. Investors and large companies will see plenty of growth opportunities.”

All additive-free Tequilas signs point in the right direction. “Additive-free Tequilas are here to stay,” Moreno says. “It’s just blowing up. There is no slowing down this train right now.”