Demand for spice boosts Ghost Tequila’s growth

Spicy Tequila brand Ghost has seen a 20% growth in sales in the year-to-date, driven by Gen Z’s demand for ‘spicier cocktail options’.

Speaking to The Spirits Business, David Gordon, CEO of Ghost Tequila, said serves such as the Spicy Margarita have been a “major driver of Ghost Tequila’s growth,” however he noted that the cocktail’s popularity is “part of a much larger movement”. “Consumers are increasingly interested in spicy flavours across the board. According to recent studies from Advantage Solutions, over 60% of Millennials and Gen Z drinkers report seeking out spicier options in both food and drinks, and the demand for spicy cocktails has surged year-over-year.” This summer, soft drinks giant Coca-Cola identified a 124% increase in consumer willingness to try spice in beverages since 2019, and according to market research company Circana, sales for food and beverages with ‘spicy’ in the description have increased 9% year-over-year in the US. “This cultural shift,” he said, “has helped make Ghost a go-to choice for crafting Spicy Margaritas and other inventive cocktails, cementing our place as a category leader in the spicy Tequila space.” Ghost Tequila is infused with a ‘hint’ of spice’ from the Bhut Jolokia, better known as the Ghost Pepper. Gordon explained that the use of the Ghost Pepper provides the Tequila with a “natural smoothness and heat that blends seamlessly in drinks, unlike the sharper, sometimes overpowering flavour of Jalapeño.” This versatility, he said “allows bartenders to experiment confidently, whether crafting a classic Spicy Margarita or a creative new cocktail. Ghost’s balanced spice is a standout feature that bartenders enjoy working with and are proud to recommend to their patrons." Exploring bold flavours Gordon noted that there has been a “strong shift toward exploring bold flavours and supporting brands with unique stories,” and as such, to drive growth this year, the brand ran multiple activations in both the on- and off-trade. “We’ve tapped into the cultural fascination with spice, celebrating occasions like Day of the Dead, and aligning with the adventurous, experience-driven lifestyle that appeals to younger, culturally engaged consumers. Ghost is built to be more than just a drink – it’s a cultural experience." Ghost’s ‘Death to the Margarita’ campaign, which launched to coincide with the Day of the Dead celebrations at the beginning of November, gave bartenders and consumers “a creative way to rethink the classic Margarita by adding a spicy twist”. In addition, the brand succeeded in breaking the record for the world’s largest Spicy Margarita, which he said “captured the attention of spicy cocktail fans everywhere”. These activations have been “tremendously effective at both brand building and sales generation,” he said. “These experiential activations create buzz and draw people in, but the lasting impact comes from tasting the product and connecting with the brand story." Throughout all of its activations, the brand has chosen to target a younger legal-drinking-age audience, as it says it “resonates with consumers who are looking for something fresh and exciting. “We target this audience through experiential marketing, digital engagement, and collaborating with bartenders who bring our product to life in new ways. Ghost’s branding and activations are designed to be visually striking and social media-friendly, encouraging organic sharing and creating a sense of community among fans. It’s also an accessible price point, which is appealing to young consumers." Ghost Tequila’s pricing is said to ‘align with the growing consumer shift toward premium Tequila under US$50’. “Consumers are increasingly savvy, looking for quality and value over just a higher price point,” Gordon said. “Ghost balances quality with accessibility, delivering a premium taste experience without the exclusivity often associated with ultra-premium products." New product launch This year, Ghost unveiled its reposado expression, which is said to offer a 'more nuanced' flavour profile. “The off-premise launch of our reposado gave consumers a new way to experience Ghost, providing depth to our portfolio and boosting demand across retail channels.” The reposado joins the brand’s blanco expression. Both are crafted with 100% blue agave and are bottled at 40% ABV. They are available in all 50 states across the US, as well as in additional global territories such as Australia and the Caribbean. Going forward, Gordon said that the brand will aim to continue its growth into 2025 by “maintaining a strong voice as both a leader and innovator in the category. We'll build on two pillars: relentless innovation and amplified presence.” He added: “We’re committed to keeping the brand at the forefront by releasing products that excite, like our recent reposado, and through unique campaigns that bring Ghost’s boldness to life in fresh ways. “Expanding our partnerships – particularly in high-energy, on-premise locations where consumers can experience the product firsthand – is also a key priority. By consistently embodying the disruptive and dynamic spirit that defines Ghost, we’re confident we’ll not only drive growth but also further solidify our position as a trailblazer in the Tequila space.”