Tequila has been trending over recent years, and in a big way. Since 2003, the American Association of Wine Economists has recorded a sales increase of over 270%. However, unlike other spirits in which production can easily be increased to meet demand, agave spirits–and especially the appellation-limited tequila–have found themselves in a tricky situation due to the fact that agave-producers are becoming increasingly constrained as consumption continues to grow; a bi-product of the arduous multi-year agricultural process required to fully mature blue weber agave plants. Naturally, this has led to inflated prices and a hesitancy to pursue expansion in markets other than the currently dominant US, which accounts for over 60% of total tequila consumption.
“There is no real incentive for brand owners to invest in countries further away if they can make money closer to home. While tequila continues to be strong in the US, this market will take priority over anything else,” said Research Director at IWSR Jose Luis Hermoso in June.
Despite this, IWSR predicts Australia will be one of the markets to register tequila consumption growth in coming years, with a predicted compound annual growth rate of 7-9% up until 2027.
“Australia is a major growth market, and … we see a lot of positive momentum in Mexico with the development of the cristalino segment for Espolòn,” commented Bob Kunze-Concewitz, CEO of Campari.
With growing demand and continued pressure on tequila producers, many are touting the growth of other agave and agave-adjacent categories to fill potential market gaps. One clear proof of concept is Top Shelf International’s new Australian agave spirit Act of Treason. Its first release, the First Harvest Blanco, sold out within 24 hours of being on sale.
“Act of Treason symbolises the pioneering spirit of a project that will create a new region of agave spirit. The dry tropics of north Queensland are the ideal place for that to occur,” said Top Shelf International CEO Trent Fraser.
Similar to wine, geographical location and agave-variety both play an important role in imparting characteristics to the final bottled spirit. Act of Treason was crafted using a variety of Blue Weber Agave suited to Queensland’s dry tropical north.
“We’re approaching this as an opportunity to create something new and expand the horizons of a category that has been geographically limited for centuries. In many ways it’s no different to the evolution wine underwent three decades ago.”
Almost exactly four years passed between preparing the ground for initial plantings in January 2020 to final bottling - four years of hard work that sold out within a day!
The Top Shelf International team have advised customers that more spirit will be available soon.
“There was an overwhelming response to the first release of Act of Tequila. The next batch will be available very, very soon!”
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