EconomyFinancialHello Asia! Tequila makers looking to expand beyond the...

Hello Asia! Tequila makers looking to expand beyond the US

Mexican tequila has earned a place in the world. Whether in a margarita or straight, as an appetizer before a meal or on its own, more and more people are encouraged to try this distillate outside of Mexico, even in distant markets.

Alfonso Mojica Navarro, director of the National Chamber of the Tequila Industry (CNIT), comments that tequila sales amounted to 527 million liters, 40% more than in 2021. Tequila exports increased 18.2% to 338.1 million liters .

In Mexico there are 1,900 brands of tequila owned by the 174 distilleries authorized by the CNIT. They have all carved out a niche for themselves in the national market, and several of them have also found a place in the United States, which has become the main export destination for the Mexican beverage. Although most of the exports -representing 64% of production- go to the United States, tequila makers now say they are ready to conquer other palates in Europe and Asia.

In 2021, Mexico sent 288.2 million liters to the United States. The second most important market is Germany, where 6.4 million are sent, Spain receives 4.7 million liters, Canada with 3.1 million liters, and Colombia with 2.9 million liters of tequila. From the markets in Asia, Japan receives 1.6 million liters and China 1.3 million, according to data from the Tequila Regulatory Council (CRT).

In the United States, where there were no restrictions on the sale of alcoholic beverages during the 2020 lockdown, there was a boom in demand for premium tequilas that consumers used to prepare cocktails at home. This in the midst of the closure of bars and restaurants. Added to this is a significant growth in ready-to-drink beverages, which generated an additional demand for tequila houses.

“During the pandemic there was an increased demand for cocktails and more and more consumers are switching to RTD. So yes, there are habits that are changing,” he adds.

The outlook for the future is promising. The representative of the tequila industry estimates that during this year the dynamism in exports and the growth in production will be maintained, at around 10%, driven by the expansion towards new markets.

Mojica comments that, since the disappearance of ProMéxico with the current administration, the Foreign Ministry has taken on some promotional tasks in new markets. “We have already had about 30 interviews, seminars and virtual missions,” he says.

Shortage of glass in sight?

While the world is experiencing effects derived from the pandemic, such as the increase in logistics costs, and the shortage of glass bottles or caps, the tequila industry has shown that it has a strengthened supply chain. Mojica comments that for now the large companies in the sector have not had an impact, while the Chamber steps forward to support smaller producers if necessary.

The director of the CNIT highlights that there are companies in the industry that have their production chain vertically integrated, with their own transport and storage capacity, and their glass factories, which reduces all risks.

“The pandemic came to leave quite a few gaps in the production chain. So far we haven’t had any problems, but we are starting to see where there is glass. There are companies that have inventory. The increase in costs is not an issue that is worrying us, in the issue of supply”, he declared.

In Mexico, there are 135 municipalities in Jalisco that have the denomination of origin to produce tequila, which was granted in 1974. It can also be produced in some states in some adjoining municipalities of Guanajuato, Michoacán and Nayarit.

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