The founders say the confidence comes from a mix of early global validation, meticulous product development and a market that is finally ready to embrace tequila at scale. “Everyone who’s tasted it so far has really liked it,” Ravichander said, adding that the team spent more than a year perfecting the profile. “If the product is good, everything else falls into place. So yes — 5% is doable,” he said in an interview to CNBC-TV18.
Loca Loka began with what Daggubati calls a “wild thought” when Vadlamudi suggested creating an Indian-founded tequila brand. What followed was an 18-month effort that involved frequent trips to Mexico, trials with multiple agave-growing families, and several rounds of focus groups in India. The turning point for Daggubati came when he tasted the final Reposado blend. “That’s when I felt, ‘We have a truly fine spirit,’” he said.
Long before entering India, the company launched in the United States — the world’s most mature tequila market — and began competing against legacy brands. The founders say the early wins, including gold and silver medals across competitions in San Francisco, Miami and New York, reinforced their conviction. “We started competing in the US market before anywhere else,” Daggubati said. “We’ve made a superior spirit and kept it affordable.”
With the US team active for eight months and markets like the Philippines now coming online, the focus has shifted firmly to India, where the brand sees the biggest growth opportunity. Loca Loka has already entered duty-free retail and is now beginning an aggressive multi-city rollout over the next six months. Mumbai and Delhi are launching this month, followed by Goa, Bengaluru and Hyderabad.
Navigating India’s fragmented alco-bev landscape — where states differ sharply in compliance rules, distribution models and taxation — is a major part of the strategy. Vadlamudi says the team is prepared. “Northern markets are largely privately distributed; southern markets are government-controlled. We’ve dealt with these challenges for decades, so we understand how to navigate them.”
Pricing has been calibrated to attract younger consumers without diluting premium positioning. In the US, Blanco and Reposado sell for $40–45, while Anejo retails at $69.99. In India, costs are lower due to in-house manufacturing, import and distribution capabilities. “Many layers are removed, thanks to capabilities we’ve built over decades,” Vadlamudi said.
The founders believe the brand’s cultural positioning — a fusion of Indian and Mexican worlds conveyed through design, storytelling and music — will help it stand out in a market dominated by global tequila giants. “No other tequila bottle looks like ours,” Daggubati said. “It has energy and speaks to the younger generation.”
With consumer interest in tequila accelerating, and Loca Loka planning retail and on-premise availability in major Indian cities within 30–45 days, the trio is betting that India is at the start of its tequila moment — and that they’re entering just in time to lead it.
Watch accompanying video for entire discussion.