Suerte Tequila’s devoted manufacturing unit and agave farm in Jalisco Mexico.
Courtesy: Suerte Tequila
Whereas some tequila makers have warned they could have to implement value hikes to offset tariffs, Colorado-based Suerte Tequila mentioned it has been in a position to preserve overhead costs low sufficient that it’ll absorb the levies if mandatory.
The Jalisco-made tequila label is not going to cross costs on to prospects.
“Absorbing the price of the tariff goes proper together with our philosophy and the best way that we have been organising and designing and rising our enterprise,” mentioned Laurence Spiewak, Suerte Tequila CEO.
Suerte Tequila is a small-batch, single-estate, handcrafted tequila that launched in 2012. One yr into operation, Suerte acquired majority possession of its manufacturing unit in Mexico from the distiller’s household, Spiewak informed CNBC.
Together with its distillery, Suerte is one of some registered tequila manufacturers that owns its agave fields and has long-term partnerships with growers, which Spiewak mentioned give it an edge towards the competitors.
“99% of manufacturers our dimension don’t personal their very own manufacturing unit in Mexico and are co-packing or co-manufacturing with a complete completely different value construction,” Spiewak mentioned.
One more reason Spiewak mentioned he would not perceive the business bracing customers for value hikes is that agave costs have been falling. “Agave costs are down tremendously, so why would we increase costs?” he requested.
IWSR in its 2024 evaluation of agave famous that costs hit a document 32 pesos (USD $2) per kilogram in 2022, however by February 2024, costs fell to 5 pesos (USD $0.30) per kilogram.
“Tequila margins are stronger than ever,” Spiewak added.
Spiewak’s tone is a shift in departure from bigger business gamers like Jose Cuervo tequila-maker Becle and Don Julio producer Diageo, which have warned about potential value hikes.
Becle beforehand mentioned it may face an $80 million affect to its stability sheet this yr if President Donald Trump moved ahead with tariffs on Mexican merchandise. A Jefferies analyst estimated Diageo, in the meantime, may see group gross sales decline by as a lot as 1.5%.
“I fully perceive why [larger brands] are up in arms a few 25% tax on enterprise,” Spiewak mentioned. “Our complete value construction and pricing, I imply every thing when it comes to manufacturing, packaging after which exporting from Mexico into the U.S. and importing right here is totally completely different.”
Whereas Spiewak mentioned proudly owning the land permits his firm to management overhead manufacturing costs that preserve costs low, Brian Rosen, chairman at grownup beverage funding agency InvestBev, mentioned Suerte’s actual aggressive benefit is its independence.
“Any of those forward-facing firms which have shareholders and boards of administrators are getting hammered as a result of the shelf pull is slowing down, whereas on the identical time the worth goes up and concurrently People are consuming much less,” Rosen mentioned. “Somebody’s received to take a bullet and these smaller firms have no of that type of strain.”
In contrast with the broader spirits business in 2024, tequila and mezcal have been the one spirits class that noticed gross sales development, with the U.S. importing $5.2 billion value of tequila and $93 million value of mezcal from Mexico, in accordance to the Distilled Spirits Council of the U.S.
Suerte’s tequila shipments grew 55.8% in 2024 in contrast with the yr prior. That is continued in 2025, rising 43% year-over-year by way of February, Spiewak mentioned.
“The important thing to our success is sustaining focus in a really noisy house,” Spiewak mentioned. “Elevating costs on customers already wanting to spend would not make sense for us proper now.”
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