As premium spirits continues to dominate as a market category, Japanese-American spirits-maker Beam Suntory has been focusing its buying on tequila brands.

Albert Baladi, CEO of Beam Suntory, said in an interview, “There’s absolutely no doubt that tequila is one of hottest categories at the moment. It is attracting multicultural consumers, younger consumers. It is absolutely on fire. We see it everywhere.”

In 2021, Tequila sales hit almost 27 million just in the United States, an increase of almost 20% over the 22.7 million in sales of 2020. Revenues have grown similarly, as Tequila has accounted for nearly a third of all revenue increases in the spirit industry, According to the Distilled Spirits Council, Tequila had the highest growth rate of any liquor between 2020 and 2021, at 31%.

Baladi says there are two major trends in the industry right now, premiumization and convenience.

He said, “Consumers are moving to those ready-to-drink, ready-made cocktails. And within that, of course, we believe that consumers will always pay for quality. So this is a bet we’re making.”

Younger drinkers, particularly are taking to Tequila.

In a survey by Statista, young people, aged 18-29, approximately 45% of all adults, were the largest consumers of Tequila in all age groups in a span of three months in 2018.

And when it comes to ready to drink alcoholic beverages, (RTDs), a 2022 Drizly survey found 70% of Gen Zers and 56% of millennials prefer Tequila over all other spirits.

Baladi noted, “It is becoming increasingly popular with young people. It’s a question of discovery. There’s an interesting story as a Mexican native spirit. There’s great variety of tequila.”

Added to this is the fact that numerous celebrities are jumping on the Tequila bandwagon as well, with spirits being offered by Dwayne “The Rock” Johnson, Nick Jonas, Kendall Jenner, Michael Jordan, and Rita Ora.

Baladi added, “That has played a big role, I think, over the last few years in the explosion of the category in the U.S.”