Loca Loka bets on India’s premium tequila wave with measured rollout

India’s spirits market has long been anchored in whisky, rum and vodka. Yet the centre of gravity is shifting, and rapidly. The momentum now sits with agave-based spirits; once relegated to margarita-only consumption, it is increasingly defining the premiumisation wave unfolding across India’s metros. This trend is accelerated by rising disposable incomes, a maturing cocktail culture and globally exposed consumers, coinciding with a generation willing to explore beyond familiar brown spirits.

Within this backdrop, another tequila label, Loca Loka, has arrived in India. Co-founded by entrepreneur Sree Harsha Vadlamudi, actor Rana Daggubati and composer Anirudh Ravichander, it represents another signal of the category’s evolution and its contest for cultural relevance.

Conceptualised in India but produced in Jalisco, Mexico, the brand has formally introduced its Blanco and Reposado expressions into the Indian market this week. The launch follows an international rollout in late 2024 across the US and Southeast Asia, where the brand worked to build presence in duty-free and export markets before turning to India. Its domestic approach prioritises experience-led retail and urban on-trade channels across major metros.

Industry projections underline the commercial opportunity. India’s tequila segment is expected to exceed $76 million in 2025. More broadly, the global tequila market, valued at $600.1 million in 2024, is forecast to reach $1.68 billion by 2033, at a CAGR of 12.1%. In 2024 alone, agave-based spirits reportedly grew 36% by volume in India, driven by premium consumers and well-travelled young professionals gravitating towards terroir, craft and sipping culture rather than traditional party-led consumption.

Pop culture and premiumisation

Tequila’s newfound popularity is not occurring in isolation. Globally, the spirit has been propelled by a potent mix of celebrity-backed brands (remember John Dwayne launching Teremana in 2020 or Kendall Jenner founded 818 Tequila the next year), luxury positioning and pop culture visibility—from Hollywood endorsements to streaming-era lifestyle cues. Those dynamics increasingly inform Indian consumption, where aspirational cues and global product discovery are now mainstream.

Bartenders and mixologists, who often function as early category gatekeepers, are reporting sharp consumer interest in higher-end agave expressions and alternative agave products beyond conventional tequila. Mixologist Nicholas Pat observed that premium agave spirits and luxury variants “are all the rage now and are helping agave as the parent category to expand rapidly.”

He added that consumers have begun appreciating nuance in sipping-grade spirits, noting that there is specific interest in “pure 100% agaves” and in “new-world non-Mexican agave spirits, thanks to their unique and diverse flavour profiles.” As the category progresses, he anticipates “a bigger focus on craft, additive-free and limited-edition agave spirits, and of course high-quality, unique collectables.”

Agave’s positioning aligns closely with ongoing premiumisation trends in India’s broader alcohol market, where category education, process transparency and provenance increasingly inform purchase decisions. These conditions favour niche players building premium credentials rather than those chasing volume.

A global-first playbook

For Loca Loka, the strategy is designed around early positioning rather than scale. Vadlamudi, the company’s co-founder and chief executive, emphasised the intent to grow through controlled placements and an artisanal narrative. He described the business as anchored in craft and clarity, encompassing sustainable agave sourcing, barrel strategy and global distribution planning. “India is a market that’s shifting to premium, and our rollout is designed to meet that shift with measured distribution and trade partnerships that respect the category,” he stated.

Unlike most Indian spirits brands that build domestically before moving abroad, Loca Loka’s approach began with global distribution. The founders prioritised what they term “shelf credibility” and international legitimacy before launching in India. Since launch, the brand has picked up medals at the San Francisco World Spirits Competition 2025, the New York International Spirits Competition, the Miami World Spirits Competition and the WSWA Wine & Spirits Tasting Competition in Denver. Awards remain a common signalling tactic within premium spirits, offering visibility, but real traction typically rests on bartender endorsement and repeat consumption.

The brand staged an exclusive launch event across Delhi and Mumbai, built around a guided tasting that showcased the difference between Blanco’s fresh agave-forward profile and Reposado’s oak-driven structure. The activation leaned heavily into multimedia staging, positioning the brand at the intersection of nightlife, design and cultural entertainment rather than conventional liquor launches.

At the heart of its messaging is cultural fusion. The name Loca Loka blends Spanish and Sanskrit—'Loca' meaning crazy and 'Loka' meaning world. For Daggubati, narrative sits alongside production.

“Storytelling is the spine of this brand because it’s not just a bottle, it’s a cultural remix. Loca Loka lets us celebrate two worlds at once: Mexico’s terroir and India’s colour and rhythm. The launch will be a narrative in motion,” he said.

Ravichander, whose artistic involvement extended into fermentation, positioned the brand away from the typical celebrity-led template. Sharing a little secret, he said that the yeasts actually ferment better with music. “This time, they worked to a playlist of my own tracks. Let’s just say the tasting notes might hit a few unexpected high notes,” he commented.

Production is led by Willy Bañuelos Ramírez, a third-generation distiller and head of production at the Jalisco distillery. Describing the launch as a cultural exchange that extends beyond commerce and watching Indian drinkers explore the category, he said, is an energising shift for distillers and characterised the launch as “a cultural crossover we’re proud to pour.”

From hype to habit

Loca Loka’s immediate rollout includes Delhi, Mumbai, Bengaluru and Hyderabad, along with key airport duty-free stores, reflecting a focus on premium bars, luxury retail and travellers rather than mass distribution. The brand plans continued on-trade activations and B2B partnerships through 2026, with nightlife and culture-driven experiences playing a central role in consumer discovery.

Yet despite the momentum, challenges persist. India’s regulatory structures, state-level taxation, high import duties and fragmented distribution environment continue to constrain growth for imported spirits. The tequila category, while expanding, remains niche among the broader domestic drinking base and pricing sensitivity could restrict category penetration.

Competition is also escalating. Over the last two years, several international tequila labels have expanded distribution and visibility in India, including ultra-premium expressions priced above INR 10,000. With both global and emerging independent entrants building presence, differentiation increasingly hinges on education, transparency and bartender advocacy.

The shift toward experience-led marketing is also intensifying across the sector. Immersive formats, which combine mixology theatre, technology and social content creation, have become central to brand building across premium spirits. With dense bar clusters emerging in metros and younger consumers gravitating toward sipping spirits over beer, experiential culture is shaping retention as much as taste.

Whether Loca Loka can convert early buzz into sustained market share will depend on whether novelty translates into repeat consumption—a test that defines most premium spirits categories. In markets where bartender recommendation remains the decisive signal, authenticity and consistency often outweigh celebrity visibility.

As the category continues to climb, launches such as this represent more than product unveilings. They reflect a shifting cultural landscape and an increasingly competitive contest for India’s premium drinker—one who privileges provenance, craft and experience. Agave spirits may still be niche, but they are expanding—and competition is accelerating.