Full Circle: Whisky Must Learn From Tequila and Rum, as They Once Did from Whisky

For decades, whisky successfully marketed itself as a category steeped in tradition, using sweeping shots of the Scottish Highlands, tumblers of brown liquid, leather chairs and roaring fires. However, as tequilas and rums have started to successfully move into the classic whisky occasion, re-positioning from lower-value party drinks to premium sipping spirits, whisky brands have had to consider how they too evolve to meet shifting consumer preferences and engage a wider audience beyond traditional whisky enthusiasts.

We are at a full circle moment: in recent years, it has been tequila and rum who heavily borrowed their branding and marketing cues from whisky. Now, times are changing, tastes are changing, and drinkers are changing. It’s time for whisky brands to change too: embracing identities and semiotics that are less reliant on provenance and that place the brands more firmly in modern drinking culture. 

For a long time, tequila and rum were more associated with cheap shots and mixers than high-end sipping. Now Don Julio 1942 is the serve at The Oscar’s Governors Ball, while Diageo bought rum brand Don Papa for an initial €260 million in 2023, marking the rise of the liquor as a “super-premium” drink.

This shift in perception has been boosted by subtle changes in their marketing. Tequila and rum now emphasize craftmanship, with different brands using their advertising and marketing to demonstrate the unique processes used in their distilleries. They talk a language of limited releases and master distillers, just as whisky has always done.

Premium rum has ditched the pirate associations and instead leaned into provenance and cask stories. From Duppy Share’s XO to Appleton Estate 21-year-old aged rum; distillers are pushing prices to new levels while they are demonstrating the potential for many different types of liquid to benefit from aging and cask finishes.

It has clearly worked: in 2022, rum sales in the UK surpassed whisky reaching over £1 billion, according to data from market analyst NielsenIQ, and Business Research Company’s Rum Global Market Report 2023 projected rum’s value would continue to rise over the next four years, particularly in the premium categories.

At the same time, in 2023, IWSR Drinks Market Analysis predicted that tequila would soon become the biggest selling spirit category by value in the US, overtaking vodka, while in 2023 British retailers Selfridges said in 2023 it saw a 250% boom in tequila sales compared to last year.

To stay competitive and relevant, it’s time for whisky to find its own ways to connect with wider audiences. By tapping into modern storytelling – by unearthing unusual, quirky stories from their distillery’s past, for example – they can stand out while retaining their authenticity.

The Scottish Whisky Association’s labelling guidelines have stymied a lot of innovation in the category, while doing a wonderful job of protecting whisky’s integrity, provenance, and traditions. The “heather and weather” style that typifies whisky branding now feels somewhat antiquated in comparison to the contemporary aesthetic embraced by tequila and rum.

Unencumbered by such constraints, tequila and rum add modern touches that convey codes of premiumization and sustainability. Take Equiano rum, which uses elegant and minimalist design, emphasizing the craftmanship and provenance of the liquid, but also actively challenges some of rum’s problematic past and puts philanthropy at its heart: donating a percentage of profits to anti-racism and anti-slavery charities. Or Casa Noble tequila embracing a new decanter-inspired look and feel whilst also adopting more sustainable practices onsite at its distillery.

The allure of tequila and rum lies not only in their authenticity but also in their ability to capture the zeitgeist. Jose Luis Hermoso, Research Director, IWSR explains that “tequila has an association as an affordable luxury, and many brands are aligned with celebrities, leading to lifestyle-oriented marketing.” This approach connects them easily with younger consumers who are increasingly drawn to buying less but spending more.

As whisky navigates the evolving luxury landscape, there is an opportunity to redefine tradition while embracing innovation, but it's a tough shift when tradition has always driven whisky’s allure.

Yet, there’s an opportunity now to be more open to people who feel they don’t know anything about whisky, without alienating old fans. Yes, keep the heritage, but do so without succumbing to old tropes. By tapping into what makes each distillery unique, whisky brands infuse their communications and branding with modern storytelling.

It’s also time for whisky brands to challenge stereotypical branding and lay down a welcome mat to wider, more diverse audiences. Pernod Ricard research finds that at least one-third of whisky drinkers globally are women. Representation in advertising and the industry is starting to reflect this, but there is still a long way to go to make the category as open and accessible to the many different types of people that enjoy a dram.

Brands can do this by embracing new styles and approaches to design – like Glenmorangie making a virtue of its intense orange colour, combining it with fun, whimsical moments that appeal to a younger, more diverse demographic. Similarly, Bruichladdich shook up the category with its turquoise packaging, a bold move away from the muted browns and greats of the Scottish moors.

The journey ahead for whisky is not about forsaking tradition but about reinterpreting it for a new generation. By taking cues from tequila and rum while staying true to their heritage, whisky brands can carve out a distinct identity that appeals to the discerning tastes of today’s luxury consumer. It's a delicate balance of honoring the past while embracing the future, and the possibilities are as rich and complex as the spirits themselves.

Anna Hamill, London Managing Director

Anna formerly worked client-side (SAB Miller) to agency-side at Design Bridge, where she worked on Mars, RBS and Hiscox, before specialising in drinks. This experience helped her to understand both sides of the fence, informing everything she works on today at Denomination. She is a strong advocate for design in the drinks industry, with the belief that design offers a huge opportunity for drinks brands, crafting a unique accompaniment for life’s most emotive moments.

Denomination – Global

Denomination are drinks experts. Female founded and owned, they are proudly independent, valuing intelligent bravery,  believing in the power of ideas. Although they have a global reach, they work to help their clients reduce their environmental footprint, working with successful brands such as, Penfolds, 19 Crimes and Chapel Down.