Tequila volumes in India rose 34% in 2025, according to IWSR data reported by The Spirits Business, while the importer most responsible for that growth is now contesting the loss of its own flagship brand.
The figures, part of IWSR's five-year outlook for Indian spirits published in August 2026, have fed a run of trade commentary this year describing tequila's path toward becoming a mainstream white spirit in the country, alongside vodka. That narrative landed within weeks of Monika Alcobev Limited, the Mumbai-listed importer that rebuilt Jose Cuervo's presence in India, disclosing to the stock exchange that its suppliers had moved to end its distribution rights.
What the IWSR numbers actually show
IWSR, the market-research firm, tracks spirits volumes across 21 markets and flagged agave spirits as a standout in its India data. Tequila volumes soared by 34% in 2025, while value increased by almost double at 66%. From 2019 to 2025, the Tequila category saw its CAGR rise by 32%, with value up by 48% over the same period. The segment is forecast to increase at a CAGR of 13% in volume from 2025 to 2030 and by 15% in value. IWSR senior research consultant Jason Holway attributed the pace to demographics rather than any single brand push: the biggest driver is the growth in consumers, both new legal-drinking-age consumers and triallists, who have growing disposable income and are exhibiting inquisitiveness.
Who built the category before the boom
Jose Cuervo, the world's best-selling tequila brand, took three attempts to gain traction in India. Jose Cuervo initially sought to build its presence in India through Focus Brands, followed by partnerships with Aspira in 2013 and Yash Wines via Gulf Beverages in 2015, but the brand's sales volume declined in the early years, dropping from about 3,300 cases in 2017 to 2,500 in 2018 and further to 2,300 in 2019. The turnaround came after October 2023, when Monika Alcobev took over the importation and distribution of Jose Cuervo, shifting the focus toward building the category rather than pursuing immediate sales volume, and the effectiveness of the new approach became evident in 2024, when volumes reached approximately 60,000 cases. A spokesperson for Monika Alcobev summarised the earlier years by saying the country did not reject Tequila, it simply did not understand it.
Other global suppliers have since moved into the same opening. Brown-Forman intends to introduce tequila brands El Jimador and Herradura to India, according to its local managing director, while Radico Khaitan's managing director Abhishek Khaitan has said the company's diversification plans extend to luxury whisky, gin, rum, vodka, and soon Tequila. Diageo India's chief innovation officer Vikram Damodaran has said he expects Tequila to see the fastest rate of growth of any category in the country due to its very small base.
A distribution fight at the market leader
The growth story now sits alongside unresolved litigation risk at its biggest distributor. Monika Alcobev Limited has formally notified the BSE that it is contesting a termination notice from its suppliers, including Casa Cuervo and Proximo Spirits, with the notice proposing the cessation of distribution rights for major brands like Jose Cuervo, 1800 Tequila, and Bushmills by March 31, 2027. The company said it disputes the notice, classifying the event as material to its operations and financial performance, and has engaged legal counsel. The stock fell sharply on the disclosure: Monika Alcobev sank after it received notices from Casa Cuervo and other suppliers proposing termination of importation and distribution rights for multiple brands in India and neighbouring territories, a move that erased 14.15% of its share price in a single session on September 30, 2026.
The dispute follows an earlier round of speculation. Weeks before the termination notice, Monika Alcobev had confirmed its distribution agreement with Proximo Group remains valid until August 8, 2026, countering market speculation and media reports after The Economic Times suggested the partnership was ending. What changed between that denial and the notice disclosed in late September has not been detailed publicly by either side.
What this means
The IWSR volume figures are real and independently tracked, and they support the mainstream argument on their own terms. But a reader should hold two facts at once: the category is growing fast in India, and its largest single distribution relationship for that category's best-known brand is now in dispute. Brown-Forman's planned entry brings Herradura into a market already unsettled at the top. Herradura Silver carries a TW Score of 55 of 95 in this publication's database, a reminder that commercial momentum and quality scoring are separate questions, and that India's tequila story is still being written by lawyers as much as by bartenders.