During the last couple of years, the tequila market has seen a significant growth in popularity, which means that sales have also grown, leading to an interesting boom in tequila producers and endorsements. The United States has become the country that consumes more tequila, and China is another market on which the spirit has a bright and quite promising future. However, tequila producers and marketers need to keep working on the growth of the market in order to be able to fulfill the potential of the spirit.
One of the most important steps producers need to take in order to keep the market growing is to develop a plan for future sales. Unlike other spirits, tequila is one of the drinks that highly depend on agriculture, since agave has to be grown for 8-12 years before starting the tequila making process. Therefore, careful and detailed planning is essential. In the case of small tequila brands, they also need to come to agreements with distilleries, as they might not have their own.
Another challenge that most producers need to overcome is the actual prices of agave, which have skyrocketed since demand increased during the early 2000s. During the beginning of the century, many producers were forced to reduce their 100% agave tequila production, focusing on their mixto brands, which consist of only 51% agave. Therefore, any current and aspiring producer must plan ahead and ensure enough capital is reserved for purchasing agave.
An interesting yet effective strategy that marketers are well aware of includes highlighting the importance of the heritage and the connection of tradition and their products. Because of the strong ties between tequila and Mexican culture, along with the artisanal process of production, many consumers are interested in purchasing tequila that comes along with a sense of history and tradition. Therefore, any producer must be mindful of the message behind their product and the story it tells.
Just as it is important for any other business nowadays, building a base of customers and deepening that relation is an essential aspect of the industry of tequila. However, unlike many other industries, there is a part of the market that is key to the success of new and existing tequila brands, and that is the bartender community. In order to succeed in the quite small and competitive world of spirits, finding the balance and creating a relationship with both consumers and bartenders should be a priority.
Last but not least, because of the recent boom in the tequila market, brands have to be ready and well prepared in order to manage their growth. We are seeing a continuous rise in popularity in spirits like tequila and mezcal, especially for new and coming brands. Since tequila isn’t a really new spirit in the country, many consumers are looking for smaller brands, as they offer new and unique products. This is the case for both tequila connoisseurs and those who are just trying for the first time.