Diageo’s Sophie Kelly on why great brand-building starts offline - The Big Impression

Summary5 min read

Podcast Summary: The Big Impression Episode: Diageo’s Sophie Kelly on why great brand-building starts offline
Release Date: August 6, 2025

Introduction

In this episode of The Big Impression, hosts Damian Fowler and Ilise Liffreing delve into the dynamic world of Tequila and Mezcal with Sophie Kelly, Senior Vice President of Global Tequila and Mezcal Categories at Diageo. Sophie brings her extensive experience in leading strategies for some of the world's most iconic tequila brands, discussing how Diageo navigates growth, cultural shifts, and evolving consumer connections with celebration.

Diageo's Approach to Tequila and Mezcal

Sophie Kelly emphasizes the significance of creating memorable experiences for consumers. She states, “[Our moment of consumption is normally when people are out socializing, trying to have the best times of their lives, right?]” (01:13). Whether it's celebrating birthdays, weddings, or attending festivals like Cannes, Diageo focuses on embedding their brands into these special moments.

Recent Campaigns and Cultural Collaborations

One of the standout campaigns Sophie discusses is the collaboration with Peggy Gou, a globally renowned DJ and fashion icon. This partnership led to the creation of the 1942 Goo limited edition, blending luxury with cultural artistry. Sophie narrates, “We approached her and said, any interest in creating a 1942 special limited edition with us? And she was blown away. She was like, yes, but, you know, can I design the product? Can I design the experience? Can it be global? Can it travel? Can it be teased? We said yes to all of the above” (02:08).

The campaign spanned multiple cities, from Miami to Hong Kong, each featuring unique pop-up experiences tailored to Peggy Gou’s influence. For instance, New York saw a pop-up souvenir store in a car park, Milan hosted it in a piazza, and Hong Kong featured a hot pot pop-up. Sophie highlights the strategic element of teasing the campaign across different locations to build anticipation: “We started to tease the collaboration, which was called the 1942 Goo... and that’s a really important element because we changed the logo of 1942 to be 1942 Goo” (03:15).

Marketing Channels and Strategies

While Sophie acknowledges the importance of out-of-home (OOH) marketing, she elaborates on a multi-channel approach that includes digital platforms, static advertising, and live experiences. “[Digital. It was static. It was experiences, real-life experiences, and most importantly, actions, you know, doing something, not just talking about it...]” (04:19). The campaign encouraged consumers to collect branded artifacts, create and share content, and engage with influencers, thereby amplifying the reach organically.

Growth and Market Insights

Tequila is experiencing a significant surge, with Sophie noting, “800 new craft brands have been launched into tequila in the last, I don't know, two years” (05:40). She compares the current tequila boom to the rise of North American whiskeys and bourbons over the past five to six years. This expansion is driven by strong branding, bartender endorsements, and the introduction of versatile tequila options suitable for various occasions.

Sophie underscores tequila’s versatility beyond traditional shots, highlighting its integration into sophisticated cocktails like mezcal negronis and espresso martinis. “We have this huge explosion in aged tequilas which are really sourcing from whiskey moments and rituals as well as kind of the versatility of tequila” (11:43).

Key Takeaways and Metrics

The campaign’s success is evident through impressive metrics. Sophie shares, “[Our consumers had watched over 190 days of content. We got up to 9 billion impressions, which is pretty extraordinary]” (07:26). She credits the blend of cultural collaboration, engaging experiences, and effective distribution strategies for these standout numbers. Additionally, Sophie points out unexpected insights, such as the high engagement hours and the global scalability of localized experiences: “[This relationship started in Singapore and then we cultivated it and then we were able to scale it globally, but also make it extremely local to that market]” (09:46).

Lessons in Cultural Storytelling

A consistent lesson Sophie emphasizes is the importance of authentic cultural storytelling. “Work with people who love your brand. Listen to what's happening with your brand and culture, and then add to that. Enhance the experience. Don't interrupt it and don't make it up. And don't play where you don't have a right to play” (12:22). This philosophy ensures that brand narratives resonate genuinely with audiences and contribute meaningfully to the cultural landscape.

Favorite Drinks and Brand Inspirations

When asked about her favorite drinks, Sophie shares her preferences, highlighting products from Diageo’s portfolio: “You know what I am a Don Julio or a Casamingos reposado on rocks with a slice of orange. I love my 1942, but, you know, so they're mine” (12:59).

She also admires non-spirits brands that excel in emotional and cultural connections, mentioning La Booboo for their engaging monster icons that adorn consumer products: “They are little kind of monster icons that everybody is hanging off their bags. I just love it” (12:44).

Conclusion

Sophie Kelly's insights reveal that successful brand-building in the Tequila and Mezcal space hinges on creating immersive, culturally resonant experiences that extend beyond traditional marketing. By blending luxury with accessibility, leveraging global collaborations, and embracing versatile product offerings, Diageo is effectively positioning its tequila brands as cultural icons. As Sophie aptly summarizes, the key is to enhance existing cultural narratives authentically and provide consumers with meaningful ways to engage and celebrate.

Notable Quotes:

“Our moment of consumption is normally when people are out socializing, trying to have the best times of their lives...” — Sophie Kelly (01:13)
“We approached her and said, any interest in creating a 1942 special limited edition with us?... We said yes to all of the above.” — Sophie Kelly (02:08)
“Digital. It was static. It was experiences, real-life experiences, and most importantly, actions...” — Sophie Kelly (04:19)
“800 new craft brands have been launched into tequila in the last... two years” — Sophie Kelly (05:40)
“Work with people who love your brand. Listen to what's happening with your brand and culture, and then add to that...” — Sophie Kelly (12:22)

Produced by Molten Heart. Theme by Love and Caliber.

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Transcript38 lines

[00:00]
A
Hi, I'm Damien Fowler.
[00:01]
B
And I'm Ilise Lofren.
[00:03]
A
And welcome to this edition of the Big Impression.
[00:09]
B
Today we're talking about how one of the fastest growing categories in the spirits industry, Tequila and Mezcal, is being shaped by culture, identity and global consumer trends.
[00:21]
A
Our guest is Sophie Kelly, SVP of global Tequila and Mezcal categories at Diageo. She's leading the strategy behind some of the world's most iconic tequila brands, helping Diagonal Diageo navigate its growth, changing cultural expectations, and the new ways consumers connect with celebration.
[00:40]
B
We'll talk about how Diageo is balancing global scale with local storytelling, and in short, how tequila has become a cultural force beyond just the shot glass.
[00:51]
A
So let's get into it.
[00:53]
B
Diageo is no stranger to bold campaigns and really intersecting in today's culture. How does your latest work in the Tequila and Mezcal category continue that legacy? And with your latest campaigns, what was one core story, or rather insight that you're trying to bring to life?
[01:14]
C
Our moment of consumption is normally when people are out socializing, trying to have the best times of their lives, right? Or celebrate a major moment in their life. So think birthdays, weddings, you know, or.
[01:26]
B
Even here at Cannes.
[01:27]
C
Even here at Cannes, right? Festivals. So what is really important for us as we build our brands and think about how we go to market is that we are creating experiences for consumers to participate in. You know, I think some of my favorite stuff across the category is on Don Julio. I mean, we launched a brand new product, 1942 Minis, which was a 50ml, supposed to allow people to access the luxury of 1942 at a better price point in a fun format. And we did that in the Oscars. Right? But the most recent one, which I just adore and I'm still obsessed with and is still going, would be our cultural global collaboration with Peggy Goo. She is number one DJ globally. She's also an icon in the fashion world and she creates a load of fashion jewelry. We discovered her in Southeast Asia and she is a massive fan of 1942. You know, as marketers, we just started to ride along with her and gift her and be a part of her experience. So we approached her and said, any interest in creating a 1942 special limited edition with us? And she was blown away. She was like, yes, but, you know, can I design the product? Can I design the experience? Can it be global? Can it travel? Can it be teased? We said yes to all of the above. So we started off in Miami, where we had an intimate party, but that intimate party probably had influence at it. That had over 100,000 followers on Instagram. So we started to tease the collaboration, which was called the 1942 goo. And that's a really important element because we changed the logo of 1942 to be 1942 goofy. We teased the campaign with outdoor and these events. And we went from Miami to New York to London to Milan and then to Seoul and then to Hong Kong. New York had a pop up souvenir store in a car park. When we went to Milan, we did it in a piazza. When we went to London, we did it differently. When we were in Hong Kong, we did a hot pot pop up. One of the most special parts of the experience was in Seoul and right in her home neighborhood and right next to where she was going to perform. And that was already up six weeks before it came. So we're teasing the drum roll in and the desire for people to be a part of this limited experience.
[04:12]
B
Now, I know you're talking a lot about like out of home, but what were some of the other marketing channels that you leaned into for this campaign?
[04:19]
C
Everything in the pop up was consumable or was collectible. So whether it was the keychains, whether it was the hats, whether it was her specifically designed scars, consumers could collect it, they could create content on it, and they could share it broader. So then what started to happen was they were creating their own content, she was creating her own content, and influencers within her sphere were creating their own content. And then the, there was the tease that we were moving to a new city. So that was creating hype in that. So when you think about channel mix, it was, you know, digital. It was static. It was experiences, real life experiences, and most importantly, actions, you know, doing something, not just talking about it and then providing people with beautiful little artifacts that they could collect from the experiences to participate and create around.
[05:18]
A
We want to get to like, what your takeaways in a minute. But before that, I want to ask you, you know, you know, it's interesting when you watch the kind of trajectory of different spirits, it seems like tequila's having a serious moment right now. I mean, for example, in New York, just the other week, I ordered a mezcal negroni. It was amazing.
[05:41]
C
800 new craft brands have been launched into tequila in the last, I don't know, two years, Right? So we are seeing a boom in tequila in the same way we saw in North American whiskeys in bourbon in the last sort of five, six years. And as A global business unit that I represent. So you're running the gamut of understanding the benefit of the experience of tequila, which is high end tequilas that are incredibly versatile, that are suitable for multiple occasions and multiple drinks in a culture like the US to teaching people that tequila is no longer that bad shot you had in college. How do you educate, how do you train, how do you get these drinks into culture so that people choose them? Well, you got to have strong brands, right. You got to have the love of the bartender and the on premise and you create the biggest rituals there be beyond anywhere else. And they travel into the home and then you've got to pick up how consumers are interacting. Right. So I'll give you a fun one. For example, we were in the ski fields and we observed that people were taking hot chocolates in shot glasses and then they were tipping the mini that I gave you, the 1942 Mini into the top of the shot glass. And that was a serve. So we took that and we scaled it across the ski resorts. Right. So from simple mixed drinks to sipping aged liquids to fun novel rituals in clubs is how you really fuel what's going on.
[07:19]
A
You know, in terms of takeaways, do you have any kind of data points that show the growth and interest in this category?
[07:26]
C
It's the fastest growing spirit segment in the category right now and is forecasted to be that way for the next five years. So if you've got spirits running at about 3 or 4%, you've got tequila running at about 6 to 11%, which is kind of amazing. It's also very specific on its development. So if you look at the US it's more developed. You look at Mexico, it's very developed. In the rest of the world, it's between 5 and 15% penetration. Give you a fun fact. Like whiskey and vodka is up around 36, 42 depending on the market. Yeah, too many people associated tequila with college shots. That is not the experience of tequila. It is playing across high energy. It's in the club, it's with the VIPs, it's with the celebrities, but it's also playing in casual connect moments, simple mixed drinks. So you're able to get into cocktail culture as well as simple mixed drinks. So I think that's a lot of the key to the growth we're seeing and just the versatility and the taste.
[08:36]
A
Profiles now that the campaign's out there. Did hit on some of these obviously, but other key signals and metrics that you look to on your dashboard, as.
[08:45]
C
It were Our consumers had watched over 190 days of content. Right. We got up to 9 billion impressions, which is pretty extraordinary. And what I'd say is, you know, lots of chat about AI and is it going to take over? I think the beautiful combination of cultural collaboration with talent, the right kind of elements in the experience to create talkability and then utilizing tech from a generate insights about the communities and how we're going to combine them and what they need in the experience to also distribution, right? Taking the influencer content, taking the bartender content, taking the experience content and amplifying that out to a further bigger audience was critical on distribution.
[09:34]
B
Sophie, can you tell me whether there is a market or a moment that delivered the most surprising engagement or maybe taught you something new out of this whole campaign?
[09:47]
C
One of the most surprising stats was just how many hours of content our consumers consumed on the campaign because it was so engaging. Right. The other thing I'd say is as she traveled, she went into global duty free, she signed bottles, she met consumers, and that exploded as well. So I think one of the surprising things for us was, you know, this relationship started in Singapore and then we cultivated it and then we were able to scale it globally, but also make it extremely local to that market.
[10:31]
B
So Sophie, from your perspective, and here's your big impression here, how are those broader cultural shifts really influencing the way Diageo approaches brand building in the tequila and mezcal space?
[10:46]
C
You must create experiences that allow what we like to talk about, which is accessible luxury, right. For people to engage in. So when you think about this, we created the baby Mini Peggy goo bottles which are 50ml bot and you can access the taste of the experience. I mean, I think formatting is a really simple way of doing it. I think inviting people in to experiences at multiple layers and letting them access, you know, a world that they may have thought was out of reach is super important when you're creating experiences. And then I think giving them little artifacts from that to carry through that represent that something special, that represents the experience they were able to engage in?
[11:36]
A
I want to ask you, this is a very important question. What new drinks around tequila are available now? Are you seeing pop up?
[11:43]
C
I think you said it. The negroni, the espresso martini. We're even doing old fashions with tequila. And that is a real result of versus people thinking about tequila is just blanco or mixed in a margarita. We have this huge explosion in aged tequilas which are really sourcing from whiskey moments and rituals as well as kind of the versatility of tequila.
[12:14]
B
So, Sophie, you've worked across several iconic brands. What's one lesson about cultural storytelling that stayed consistent throughout your career?
[12:23]
C
Work with people who love your brand. Listen to what's happening with your brand and culture, and then add to that. Enhance the experience. Don't interrupt it and don't make it up. And don't play where you don't have a right to play.
[12:37]
B
Is there a non spirits brand that you admire right now for the way it connects with people emotionally or culturally?
[12:45]
C
La booboo. Have you seen these?
[12:47]
B
Oh, yes.
[12:48]
C
They are little kind of monster icons that everybody is hanging off their bags. I just love it.
[12:54]
A
A final question I think is what's your favorite drink?
[13:00]
C
You know what I am a Don Julio or a Casamingos reposado on rocks with a slice of orange. I love my 1942, but, you know, so they're mine.
[13:16]
A
And that's it for this edition of the big impression.
[13:19]
B
This show is produced by molten heart. Our theme is by love and caliber, and our associate producer is today.
[13:26]
C
And remember, work with people who love your brand. Listen to what's happening with your branding culture, and then add to that. Enhance the experience. Don't interrupt it and don't make it up. And don't play where you don't have a right to play.
[13:41]
B
I'm Damian and I'm a.
[13:43]
A
And we'll see you next time.