As part of the National Tequila Day, we can’t foresee a better time to explore some fascinating facts about tequila, a globally recognized Mexican spirit. From its rich history and regulations to the rise of private labels as profitable business ventures, we have a lot to share with you. Let’s explore six interesting facts about Tequila together!
#1 Tequila Has a Rich History
There is a reason so many celebrate National Tequila Day: its deep, rich history and cultural significance. In the 13th century, the Aztecs were among the first to ferment blue agave, creating an alcoholic beverage that became quite popular at the time, called pulque. These tribes continued to consume this traditional drink. However, when the Spanish invaded, they discovered a distillation process, which created a new spirit, mezcal.
Over the years, distillers played around with agave potential, and by the 1750s, the true tequila emerged. The Cuervo family began commercial distillation of tequila in 1758, followed later by the Sauza family in 1873. People eventually identified blue agave as the best plant for producing tequila, which still holds true to this day.
#2 The First Spirit to Receive the Appellation of Origin Label was Tequila
Tequila was the first product to receive the Appellation of Origin label in Mexico. Established in 1974, this legislation ensures that tequila can only be produced in specific regions of Mexico. In addition, they have to use traditional distillation methods. Producers exclusively make this protected designation of origin spirit in the state of Jalisco and certain municipalities in:
- Guanajuato
- Michoacán
- Nayarit
- Tamaulipas
Established as a Mexican designation of origin product in over 40 countries, tequila is protected through bilateral agreements. With this recognition, the Mexican government can guarantee the integrity and maintain the quality of all tequila spirits made. Overall, holding tequila and other products to these high standards, the unique status is cemented into the global market.
#3 Tequila is Crafted Exclusively with Blue Agave
As mentioned earlier, in the 1750s, people began to associate tequila with the succulent blue agave. While not always true, nowadays, producers exclusively craft tequila with blue agave. In fact, in the 21st century, the stringent regulations surrounding tequila production emphasize that this spirit can only be labeled as tequila if it is made from a minimum of 51% blue agave. However, producers craft the highest-quality tequilas from 100% blue agave. This dedication to using the finest agave contributes to the exceptional quality of premium tequilas.
The blue agave plant (agave azul), scientifically known as Agave tequilana, is native to Mexico and thrives in the region’s volcanic soil and arid climate. People seek it for tequila production because of its sweet and aromatic notes, which create the rich and sought-after flavors of top-shelf tequilas.
#4 Tequila is a Cultural Heritage of Humanity
On July 24, 2006, the Agave Landscape and Ancient Industrial Facilities of Tequila in Mexico received the prestigious UNESCO World Heritage status. This recognition was a significant achievement for the historical and cultural importance of Mexico’s agave fields and tequila factories. Because of that, Mexican authorities chose this date to celebrate the National Tequila Day.
For those who may be unaware, the UNESCO Cultural Heritage of Humanity label indicates that producers make this spirit using traditional processes that honors the cultural significance. This status attached to tequila increased its universal value. Which caused the global market to show greater interest in stocking their shelves with authentically crafted tequila spirits.
#5 Tequila’s Demand is Rising Globally
Tequila has a promising future as its demand is rising globally, and more individuals are becoming consumers. Projections indicate that by 2028, the worldwide tequila market will reach an estimated value of 14.35 billion USD. Not only do we see a shift in the U.S. and the Mexican market. We are also seeing this growth in other areas around the world, such as Europe and East Asia.
The two tequila market segments that are seeing the most notable growth are premium and super-premium tequilas. With these on the rise, it sends a clear signal that consumers are willing to spend a bit more for a high-quality tequila brand. With that said, many are targeting these market segments and achieving higher, more sustainable profits due to the increase in price point.
Premium tequilas not only have larger profit margins. They also enable private labels to establish a stronger position in a competitive market. This is because these private labels can build a brand based on quality and exclusivity rather than relying solely on low pricing as their selling point.
#6 A Private Tequila Label is a Profitable Investment
Investing in premium private-label tequila can offer significant financial benefits, and not only on National Tequila Day. This lucrative aspect attracts business owners, entrepreneurs, and high-profile celebrities. One example of this is famous actor George Clooney. He created his own private tequila label, which amassed a huge following and sold for a whopping 1 billion dollars in 2017.
With more labels coming to the market, investors and entrepreneurs are competing to produce the richest, smoothest, highest-quality tequilas. Because of this, price points are on the rise as consumers are willing to pay a premium for tequila that offers both a distinctive flavor and a compelling brand. Investors are feeling excited as this high price point is translating to a substantial rise in revenue and an increase in product demand.
This goes to show that with a premium private tequila label, entrepreneurs and investors can position themselves in the upper segment of the market. Here, profit margins are at their highest and names are being made.
Getting Started with Your Own Tequila Label
Looking to launch your own tequila brand? National Tequila Day is an exciting time to decide to venture into this growing industry. Tequila and Spirits Mexico supports aspiring tequila entrepreneurs like you. Every tequila visionary should have the opportunity to bring their dream to life without getting bogged down by the nitty-gritty details.
Our team has the expertise, knowledge, and skills to deal with the complexities, regulations, and the craft of distillation. With our help, you can avoid the hassle and confusion and let your imagination run wild while we take care of compliance details.
Learn more today about how Tequila and Spirits Mexico can help you build a tequila brand. Explore our services today and position yourself for success when National Tequila Day rolls around again next year!