Tequila sales and exports increase in Mexico
In the face of the health and economic crisis that the coronavirus pandemic brought with it, there is one industry that unexpectedly benefited: the tequila industry.
Agave liquor has become one of the main alcoholic beverages in confinement in Mexico and the United States. According to Nielsen, the market research company, sales soared 60% in four weeks to April 25 compared to the same period last year, surpassing all other liquors.
Mexico closed all non-essential industries in March, but tequila industry authorities managed to get the drink considered as an essential product, otherwise, the harvest would have been lost.
Since the US and Canada, the partners in the NAFTA and T-MEC free trade agreements did not impose restrictions on the sale of alcoholic beverages, industry authorities argued that they had to keep tequila flowing. Meanwhile, more than 80% of tequila is for export.
In contrast, the brewing groups were not successful in getting their product considered essential. Manufacturers suspended production and some states banned the sale of alcoholic beverages during closures.
This caused the prices of the small inventories that remained to shoot up and generate trade of beer in the black market, that is, a can of beer used to cost between 11 and 12 pesos, now it costs 35 pesos, which represents the corner stores, of which 800 thousand earn 40% of their turnover with beer.
Meanwhile, according to trade data company Panjiva, total exports of tequila were 42% higher in the first quarter compared to the same period of 2019, including an increase of 43% in March.
According to the IWSR, the London-based alcoholic beverage industry authority, Americans have already spent around $2 billion more on alcohol purchases in March than last year.
Also, during the first quarter of the year, sales of the distillate also increased 4.5% in Europe, Asia, and Latin America, to $739 million pesos, according to the report of Becle, the owner of Jose Cuervo and other brands of tequila.
On Mother's Day, in the absence of beer, tequila, and other liquors became the plan B of many Mexican families, that although health authorities recommended not to meet to celebrate, sales in establishments increased.
