Tequila Creation: This is what you need before jumping into production

Tequila has an incredible market as it’s an incredible spirit. It’s also a largely misunderstood spirit that’s often associated with wild partying and an awful aftertaste.

However, as more consumers are becoming educated on the subject of tequila, leading them to make better sipping choices (such as avoiding chemical filler-latent brands such as Cuervo Gold), the market continues to expand.

While there’s a tequila out there for everyone, finding the right one to drink is much easier than creating your tequila brand. The spirit’s, and especially tequila industry is a complex but generous business to get into.

One of the most common mistakes we see with new brand creators is that they initially focus on creating a product they like rather than looking at an existing unmet demand.

We don’t want our clients to rush into production, only to have a warehouse full of product that costs them money every day while they figure out how to sell it.

Lucky for you, we’ve condensed the complicated creation process into three essential steps you need to be ready before investing in it.

Stage 1: Branding and Development

The first step is to know your market. Who are you going to sell to?

Yes! Understand their lifestyle, what drinks they prefer, where do they usually drink.

For you to be different, they have to feel connected to you.

Know their problems and needs, you don’t have to solve them, just make them know you understand.

Generally speaking, market research can take about six weeks or longer. It all depends on how you’re conducting your research. Either way, it takes time to learn about the product you’ll be pushing, the market that will be accepting it, and the brand identity you’ll create around it.

Stage 2: Legal Decisions and Processes

Once you’ve figured out how you’ll be differentiating yourself in the tequila market, we recommend you to do a thorough research of the legal requirements to own, produce and distribute a brand in your home country.

In addition to having a clear idea of the legal requirements that your producer must have, and be clear before agreeing to work with them.

Tequila is geo-specific, much like champagne and scotch. It can only be made in the Tequila region of Mexico, which includes five states: Jalisco, certain areas of Guanajuato, Tamaulipas, Michoacán, and Nayarit.

Make sure to follow the specific guidelines to distribute your tequila throughout the United States or Canada.

It also must be approved by the Tequila Regulatory Council (TRC), which takes a minimum of two months for the product to be assessed for authentication and quality.

Stage 3: Production

It takes between 8 and 20 years to produce a bottle of tequila.

Of course, this changes if you work with someone who is prepared in the industry to be your supplier. In this case, it can take from 6 months to 1 year.

This product requires a seven-step process:

1. Harvesting (which takes between eight and 10 years)

2. Cooking

3. Shredding

4. Fermenting (this usually takes between three and five days, but can sometimes take up to 12 days)

5. Distilling

6. Aging*

7. Bottling

*The most important part of the production is understanding the aging process. There are three categories of Tequila—Blanco, reposado, and añejo, and they all depend on how long the spirit is left alone to age or, rest, usually in bourbon oak barrels.

Blanco tequila is clear, unaged tequila, although it can be left in the oak barrel for up to 60 days.

Reposado tequila will be slightly darker in color, usually caramel. It is “rested” for a minimum of two months and a maximum of 12 months.

Añejo tequila is rested for a minimum of one year and a maximum of three, deepening the color and flavor. Anything aged beyond three years is considered an extra añejo.

Of course, there’s a lot more involved in these condensed stages than just the liquid. Make sure you consider the entire supply chain value: terroir, workers, machinery, bottling and material risks, insurance, shipping cost, legal process. An insider view will always help to speed up the learning curve.

When you’re ready to create your private tequila brand, let us take care of the whole production process. You’ll take care of what you’re good at: selling!