Brand Finance 2026 Spirits Report: Tequila Leads Global Growth as Crown Royal Tops Strength

Brand Finance’s latest Alcoholic Drinks 2026 report shows Diageo’s Crown Royal crowned the world’s strongest spirits brand, while tequila labels (José Cuervo, Don Julio, Patrón) deliver the fastest brand-value growth. Scotch and Cognac brands slipped amid trade headwinds.

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Global Spirits Brand Values

Brand Finance values the top 50 spirits brands at about US$161 billion in 2026 (down ~4% from 2025). Chinese baijiu still dominate overall value – Kweichow Moutai leads at roughly $59.6 billion (up 2%), far ahead of runner-up Wuliangye (US$27.3 billion). The baijiu sector is now splitting: lighter Fenjiu (Xinghuacun) gained 6% to $6.2 billion, while Luzhou Laojiao fell 16% to $5.3 billion. This reflects softer demand for heavy “sauce-aroma” styles and growing consumer interest in milder baijius. Overall, baijiu’s strength partly cushions the market: outside China, tequila and ready-to-drink (RTD) cocktails drove the few bright spots. By contrast, Cognac, Scotch and gin brands tied heavily to the US/China have suffered declines.

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Tequila’s breakout year

Brand Finance finds the three fastest-growing spirits brands in 2026 are all tequila: José Cuervo (+61%), Don Julio (+57%) and Patrón (+36%). Their new brand values (US$1.6 bn, $2.5 bn and $2.4 bn, respectively) now exceed those of almost all Scotch whiskies. In fact, Don Julio and Patrón have become more valuable than every Scotch in the ranking except Johnnie Walker. This surge underscores tequila’s successful shift from party shots to premium sipping occasions and lifestyle appeal. Notably, this growth came despite a flat US spirits market – US supplier sales were down ~2% in 2025 – highlighting the importance of pricing power, brand loyalty and innovation. Tequila brands have leaned into aged expressions, craft credentials and cocktail culture to capture premium consumers. For example, Bacardi’s Patrón has launched marketing campaigns around “100% agave, water, yeast” purity, tapping a wider trend toward authenticity.

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Crown Royal’s Canadian lead

Diageo’s Crown Royal was rated the strongest spirits brand globally in 2026. The Canadian whisky scored an AAA+ brand strength (BSI 96/100) and saw its brand value rise 12% to US$2.7 billion. Brand Finance attributes this to Crown Royal’s “credibility and price acceptance,” especially in the US, and the appeal of its ready-to-drink (RTD) cocktail extensions. In practical terms, Crown Royal has innovated with flavored variants and canned cocktail packs that play to convenience and casual occasions, broadening its reach beyond traditional whisky drinkers. Its story shows that even large legacy brands can grow by refreshing their portfolio and connecting with new consumers while maintaining core quality. (By comparison, last year’s strongest brand was Don Julio, underscoring Diageo’s momentum in both tequila and Canadian whisky.)

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Trade risks - Scotch and Cognac

Not all segments fared so well. Scotch whisky brands have been hurt by US tariffs, weak overseas demand and higher costs. Pernod Ricard’s Chivas Regal plunged 32% in value to only US$900 million, and even global leader Johnnie Walker fell about 10% to $2.8 billion. The Scotch Whisky Association reports US export volumes plunged 15% after a 10% tariff came into force in 2025. (By contrast, Glenfiddich was a notable exception – up 13% to $493 million as it benefited from premium niche positioning.) Cognac was similarly pressured: LVMH’s Hennessy fell 29% to $3.8 billion and Rémy Martin 4%. This reflects trade barriers (e.g. Chinese anti-dumping duties on Cognac) and softer luxury demand in the US and China. Pernod’s Martell stood out with modest growth (+7% to $925 million) – perhaps due to better distribution in Africa and emerging markets. In short, brands heavily reliant on just one or two export markets have seen their brand value erode.

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Implications & Recommendations for Brand Leaders

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The Brand Finance findings underscore several strategic priorities for spirits companies:

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Diversify Geographies

Avoid over-reliance on any single market. Scotch and Cognac declines show the dangers of tariffs and trade shocks. Seek new growth regions – for example, EU data show strong spirits export growth into India, Africa and Latin America – so that emerging markets can begin to offset losses in the US/China. (Spirits Canada warns that 93% of Canadian whisky export value went to the US in 2025, highlighting why brands like Crown Royal should diversify or build partnerships abroad.)

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Double-Down on Brand Strength

High BSI correlates with resilience. Strengthen consumer trust and premium positioning. Crown Royal’s AAA+ status shows the value of credible branding and price acceptance. Invest in marketing that emphasizes authenticity (e.g. Cuervo and Patrón touting 100% agave content) and heritage. Loyalty programs, social media engagement and data-driven consumer insights will help maintain advocacy – a key driver of long-term brand value.

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Innovate for New Occasions

The rise of tequila and RTDs highlights changing drinking occasions. Ready-to-drink spirits cocktails grew ~16% in the US in 2025. Brands should explore convenient formats (canned cocktails, pre-mix drinks) and creative flavor extensions. Whiskies might launch lighter or flavored lines (as Crown Royal has done), while tequilas can expand premium añejo/extra-añejo variants or tequila-based liqueurs. Innovation attracts younger consumers and adds usage occasions, supporting pricing power.

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Manage Cost & Channel Strategy

Soften impacts of rising costs and supply-chain issues. For example, Scotch producers are dealing with steep haulage and duties – they can respond by optimizing cask sourcing or emphasizing “craft” narratives (as seen with the new protected status for English whisky) to sustain margins. Similarly, ensure agility in distribution – focus on direct-to-consumer or travel-retail channels that can command higher prices when mass markets slow.

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Monitor Policy & Industry Trends

Keep a close watch on trade policy and consumer trends. Tariffs and regulations (e.g. the recent US ban on certain Canadian spirits) can rapidly reshape markets. Engage proactively with governments and industry bodies to mitigate risks. Additionally, leverage industry analytics (like Brand Finance’s reports) to benchmark brand value and identify emerging threats or opportunities.

The Brand Finance 2026 spirits ranking delivers a mix of opportunity and caution for alcohol brand leaders. The standout message is that brand strength and innovation matter more than ever: the most valuable and fastest-growing spirits combine solid heritage with fresh appeal. Tequila’s momentum and Crown Royal’s win show how brands that evolve with consumer tastes – premiumization, authenticity and convenience – can thrive even in tough markets. Conversely, the Scotch and Cognac cases are a warning: concentrated market exposure and lack of agility can erode even iconic brands. C-suite marketers should therefore balance tradition with transformation – investing in brand equity and exploring new segments – to sustain growth in the shifting global spirits landscape.