Understanding the Rising Cost of Tequila"

December 18, 2023
At Mar Azul, we've been keenly observing the tequila landscape. Recent developments show that production costs have been affected by more than just the surge in agave prices. The pandemic's far-reaching impacts have created ripples, making tasks like obtaining bottles, managing label production, and ensuring efficient product shipments more challenging than before.
Industry stalwarts like Tequila El Tequileño have spoken about the difficulties faced during the pandemic, including operational disruptions and the subsequent resumption with several constraints. This has led many brands to reevaluate their supplier relationships due to the unexpected market shortages, especially evident in the scarcity of glass bottles. The current situation can be attributed to various factors, including pandemic-led shutdowns and external disruptions like adverse weather events.
As we dive deeper, we find that the ripple effects are seen industry-wide. Essential packaging resources have become rare commodities. For instance, the rise in online shopping during the pandemic has greatly affected the availability of cardboard. Similarly, the uptick in global housing projects and renovations has influenced certain raw material prices, impacting tequila production indirectly.

Camarena, from El Pandillo distillery, has highlighted how these external market dynamics, combined with intrinsic challenges like rising copper prices, have complicated the scaling of tequila production. Furthermore, consumer behavior, as observed, has shifted more towards home consumption, necessitating producers to adapt.
At stores like El Buho in Tlaquepaque, the resultant effects are evident. While some brands recalibrate their pricing strategies, others remain hopeful of a more stable future. Yet, amidst these complexities, the primary expenditure concern for producers like Tequila Fortaleza continues to revolve around the core ingredient, agave.
In conclusion, while the tequila industry navigates these multifaceted challenges, the essence remains - the quest for that perfect yield, especially when working with mature agave. As always, Mar Azul remains committed to providing insights and staying connected with the pulse of the industry.
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