Diageo posted stronger-than-expected Q1 2026 results this week, with North American net sales climbing 4.2% year-over-year. The London-based spirits giant credited its tequila portfolio and ready-to-drink (RTD) cocktail lines as the primary growth drivers.
Don Julio and Casamigos both posted double-digit volume gains in the U.S. market, reflecting the continued consumer shift toward premium tequila. The RTD segment, anchored by Smirnoff Ice and newer Ketel One Botanical Spritz offerings, grew 18% in the quarter.
CEO Debra Crew noted in the earnings call that the company is “investing aggressively in the RTD space” and expects the category to represent 15% of North American revenue by 2028, up from roughly 9% today.
For the Texas market specifically, Diageo’s distributor network reported above-average growth in Dallas-Fort Worth and Houston metro areas, with tequila outperforming all other spirit categories in the state.