Mexico's Tequila Industry Faces Glut Amid Slowing Demand and Tariff Threats

Mexico is sitting on more than half a billion litres of tequila in inventory, almost as much as its annual production, as the fast-growing industry reckons with slowing demand and the prospect of tariffs on exports to the US under Donald Trump. By the end of 2023, the industry had 525mn litres of tequila in inventory, either ageing in barrels or waiting to be bottled, according to data shared with the Financial Times by the Tequila Regulatory Council.

Of the 599mn litres of tequila produced last year, about one-sixth remained in inventory, according to the figures. “Much more new spirit is being distilled than is being sold, and inventories are starting to accumulate,” said Bernstein analyst Trevor Stirling, attributing the build-up to falling demand and new distillery capacity that has recently begun operating in Mexico. “The tequila industry is set for a very turbulent 2025.” Consumers’ thirst for Mexico’s national drink grew rapidly over the past decade as the spirit went mainstream in the US, partly thanks to celebrity-backed brands such as George Clooney’s Casamigos. But demand has fallen back over the past 18 months as the pandemic spirits boom subsided and consumers cut back on their drinking in response to higher prices. The amount of spirits sold in the US in the first seven months of the year shrank 3 per cent compared with the same period last year, according to drinks data provider IWSR. Tequila consumption fell 1.1 per cent, compared with a 4 per cent rise in 2023 and a 17 per cent rise in 2021, the height of the tequila surge. Though some of the inventory is in the process of being aged, rather than just awaiting bottling, tequila evaporates rapidly compared with other ageing spirits — partly because of Mexico’s warm climate — meaning that most tequila is not left in barrels beyond three years. To add to the industry’s woes, Trump has threatened Mexico, the US’s biggest trading partner, with a 25 per cent tariff on its good

Deutschland Neuesten Nachrichten, Deutschland Schlagzeilen

Similar News:Sie können auch ähnliche Nachrichten wie diese lesen, die wir aus anderen Nachrichtenquellen gesammelt haben.

English Wine Industry Faces Challenges Amidst Search for BuyersThe English wine industry is grappling with a downturn as prominent estates like Chapel Down, Gusbourne, and Rathfinny seek buyers or partners. A combination of factors, including a poor 2024 harvest, a challenging UK Budget, and the need for significant capital investment, has dampened investor enthusiasm. Estate founders are reaching a point where they need to either commit to further investment, sell, or pass on the business to the next generation.
Herkunft: FT - 🏆 113. / 51 Weiterlesen »

How the car industry is exposed to Donald Trump’s tariffsUS president-elect’s pledge to impose tariffs on Mexico and Canada would disrupt sector’s complex supply chain
Herkunft: FT - 🏆 113. / 51 Weiterlesen »

Inside the Ghetto Film School that's rewriting the movie industry scriptThe non-profit is helping aspiring filmmakers from underrepresented backgrounds to break through the barriers of the UK film industry.
Herkunft: Metro Newspaper UK - 🏆 61. / 63 Weiterlesen »

Labour Considers Allowing Hybrid Car Sales Until 2035 Amid Industry PressureLabour plans to adjust targets for electric vehicles to permit the sale of hybrid models until 2035, responding to pressure from car manufacturers. The move could extend full-hybrid car sales by five years beyond the original 2030 cut-off.
Herkunft: DailyMailUK - 🏆 7. / 90 Weiterlesen »