Diageo, Luxury Tequila 'Don Julio'... Takes the Lead in the Market

Top-Tier Tequila Product 'Don Julio Ultima Reserva' Unveiled
Pop-Up Event Held to Celebrate Global Art Fair Frieze Partnership
Plans to Capture Domestic Tequila Market Through Premiumization Strategy

Diageo Korea is making a clear move to firmly seize the lead in the domestic tequila market by promoting the tequila brand 'Don Julio.' Diageo Korea plans to strengthen Don Julio's premium branding through collaborations with cultural and artistic events such as film festivals, fashion weeks, and art fairs.

Don Julio Ultima Reserva

On the 3rd, Diageo Korea opened the Don Julio 'Por Amor' popup in Hannam-dong, Yongsan-gu, Seoul, unveiling for the first time the brand's top-tier product, 'Don Julio Ultima Reserva,' which is scheduled to be launched later this month.

Don Julio Ultima Reserva, introduced for the first time in Korea, is a tequila product classified as 'Extra A?ejo,' aged for 36 months. It was made using the 'Solera System' to preserve the pi?as (the roots of agave) from the last agave planted by the founder Don Julio Gonz?lez in 2006. The Solera System is a method where the oldest tequila stored in oak barrels is placed at the bottom, and barrels of tequila produced in subsequent years are stacked pyramidally on top, aging together. Different vintages are then blended to complete the product. This principle is similar to passing down the flavor and aroma through soy sauce fermentation.

Tequila is a type of Mexican distilled spirit called 'Mezcal,' which is made by distilling the succulent plant agave (Agave). Among Mezcals, only those made from blue agave grown near Guadalajara in the state of Jalisco are called tequila. Depending on the aging period, tequila aged less than two months is called 'Blanco,' meaning white, and is mainly used for cocktails. Those aged less than one year in oak barrels are called 'Reposado,' less than three years 'A?ejo,' and over three years 'Extra A?ejo.'

The exterior view of Diageo Korea's 'Don Julio Por Amor' popup.

The popup, held ahead of the launch of Don Julio Ultima Reserva, commemorates Don Julio 1942 being selected as the official partner of 'Frieze 91,' the global membership program of the world-renowned art fair 'Frieze,' and was arranged to coincide with Frieze Seoul Week. The popup features consumer participation events and sensory experience programs, and offers a variety of Don Julio products. Additionally, during Frieze Week, signature Don Julio cocktails and food pairings presented by famous bartenders and chefs will be showcased at various locations in Seoul.

Diageo Korea views the growth potential of the domestic tequila market highly and aims to secure market leadership by expanding the Don Julio brand portfolio. Diageo Korea first introduced the Don Julio brand to Korea in 2008 and has clearly pursued a premium strategy by launching the premium product Don Julio 1942, priced around 400,000 KRW at retail, last September, followed by the introduction of Ultima Reserva.

The selling price of Ultima Reserva is expected to be set at around 2,000,000 to 2,500,000 KRW per bottle for on-channel sales such as restaurants. A Diageo Korea official said, "The growth of the premium tequila market is being proven mainly in the U.S. market," adding, "We believe there is sufficient growth potential in the Korean market as well, as interest in premium alcoholic beverages is increasing, especially among younger consumers."

Although the absolute size of the domestic tequila market is still not large, it has been steadily growing. According to customs import-export trade statistics, the import value of tequila in Korea increased about 2.5 times over three years, from 2.53 million USD (approximately 3.4 billion KRW) in 2020 to 6.48 million USD (approximately 8.7 billion KRW) last year. In particular, the increase in import value relative to import volume is rapid, clearly showing growth centered on premium products.

Diageo Korea plans to strengthen the premium brand image and identity of Don Julio by enhancing its connection with cultural and artistic fields such as film festivals, fashion weeks, and art fairs. A Diageo Korea official said, "Don Julio has established itself as a brand closely connected to the cultural and artistic industry, being used as the official celebratory drink at the U.S. Academy Awards and the domestic Baeksang Arts Awards this year," adding, "We plan to continue various consumer activities to establish the brand as one closely related to culture and arts in Korea as well."

This content was produced with the assistance of AI translation services.