Diageo, the top international spirits brand and the producer of Don Julio tequila, noted that tequila is one of the fastest growing spirits categories. Alcoholic beverages as a whole have seen record growth over the last decade, in both developed and emerging markets. This is fueled by population growth, greater penetration of spirits and increased demand for premium products.The industry is only expected to grow in the following years, with 600 million likely new customers by 2032 due to continued increases in “middle and upper class income.” Moreover, spirits penetration remains relatively low, providing opportunity for further growth. In the U.S., Diageo’s largest market, only about 50% of households purchase spirits each year.The increase in sales is tied to the broader trend of “premiumization,” and it is expected that sales of higher-priced bottles will grow at twice the rate the entire international spirits category did between 2016 and 2021, based on Diageo’s projections.Diageo has the largest premium market among international spirits brands. Its “superpremium plus” portfolio, which encompasses its luxury brands, grew by 31% in the last year.Despite potential short-term setbacks due to the global economic downturn, Diageo predicts that its premium market will continue its record of steady growth. Still, the tequila market is volatile, as agave supply is dependent on a number of small producers with limited capacity to produce enough raw materials to meet rising demand. Tequila is produced only from agave plants grown in Jalisco and parts of four other states. The plants require six or more years to reach maturity and be ready for harvest.Nepal’s new govt seeks to balance ties with India, China, economy in focusKATHMANDU, Dec 26 (Reuters) – Nepal’s new government, led by the former Maoist rebel chief, will try to balance ties with its immediate neighbours China and India as it seeks economic growth in one of the world’s poorest countries, officials of the ruling coalition told Reuters.Pushpa Kamal Dahal, who still goes by his nom de guerre Prachanda, unexpectedly became prime minister for a third time on Sunday after leaving his previous coalition and securing the support of the opposition Communist Unified Marxist-Leninist (UML) party and five other smaller groups. Last month’s election had returned a hung parliament.The UML leader and former prime minister, Khadga Prasad Sharma Oli, is believed to be pro-China.Nepal is one of several South Asian countries where India and China both seek influence. India has long considered Hindu-majority Nepal, a Himalayan country of 30 million, as a natural ally based on their close historical ties and long open border.”We’ll maintain relationships of equi-proximity with both our neighbours,” Narayan Kaji Shrestha, a senior member of Prachanda’s Maoist Centre party, told Reuters. Shrestha was later named as a deputy prime minister.View 2 more stories”We must immediately focus on containing inflation, maintain reserves, raise capital expenses, narrow the trade deficit and lower interest rates.”ECONOMIC CHALLENGESPrachanda also named six other ministers and gave the key finance portfolio to Bishnu Prasad Paudel of the UML party. Paudel has been finance minister twice before.Another key appointment is that of Rabi Lamichhane, a television talk show host, to the home (interior) ministry.Prachanda kept the foreign ministry for himself.
This article was originally published by Reuters.