Tequila Private Brand – Benefits and Disadvantages
Starting a private label tequila company is a huge step to take, and it’s not without its own benefits and disadvantages.
The difference between a private label and a private brand is entirely the customization requested.
A private label is a good option to start with because it requires less order quantity but delivers a certain level of customization. A private brand is fully customized but requires a minimum order quantity and a larger investment.
If you already have experience in the industry, and you want to start big. Before you take the leap to creating your own tequila, here are a few things to keep in mind:
Tequila is one of the most popular spirits on the market, with the industry seeing a nearly 50% increase in sales in 2020 alone. We constantly see an increase in tequila tastings around the country, and many people are making tequila their alcohol of choice rather than more traditional standbys like vodka. More and more people are choosing to jump into the tequila industry, and it’s easy to see why when looking at how much demand has grown.
Dedication to Authenticity
As tequila rises in popularity, more and more connoisseurs are looking for the most authentic tequila possible. When creating your own private tequila brand, you decide where your ingredients are sourced for the most authentic tequila possible. When you provide a quality, authentic tequila, you can expect the customers to all but roll in.
Creating your own tequila private brand allows you to fully customize your label to match your own brand. If you want a guitar shaped, 100% pure agave tequila, you are more than capable of creating it. By creating your own private tequila brand, you’re able to make something you’re proud of that also shows your values as a person and company.
Expect to Invest
There’s no easy way to put this; if you want to create a tequila brand, you need to be willing to invest. It can easily take years for investors to see a return on their initial investment and start making a profit. Why does it take so long? Well, for starters, tequila is an expensive spirit to make if you’re dedicated to producing a high-quality beverage. You can easily expect to spend somewhere around $15 to $30 a bottle. A private brand requires customization, which implies larger orders. Realistically, starting a project like this can easily cost up to half a million dollars. See our article on Why is it more profitable to place large orders?
Know Your Target Market
The tequila market isn’t an easy industry to get into (more on that in a minute), and you need to properly understand what you’re getting into before starting your own brand. There are thousands of tequila distilleries and agave growers in the industry, and you’ll quickly learn that there are plenty of unsavory companies waiting to pounce on those who don’t fully understand the industry they’re getting
into. After sorting through suppliers, you also need to look at your target market. With the steep increase of popularity of the tequila industry, there are thousands of brands creating tequilas of varying qualities. You need to know what your ideal customer is looking for in a spirit and how you can create something people actually want.
Lots of Competition
Did you know there are over 2,000 different tequila brands on the market right now? How many of those have you actually tried? How many can you name? If you’re really invested in tequila, probably several hundred—tops. When you look to go into a lucrative industry like tequila, you’re going to face a lot of competition, and all of you are vying for the same thing: getting in front of customers. You need to prepare to heavily market your brand directly to consumers while also attempting to get shelve space in liquor stores across the country.
The tequila industry is (understandably) full of legal hoops you need to jump through to get your brand off the ground. You’ll have international, federal and state regulations to consider, and you’ll need a great legal team behind you to get all the necessary permitting to sell your tequila.
Know Your Product
Tequila means a lot to people who love the drink, but it also means a lot to the people of Mexico. You need to be prepared to respect both for your company to flourish. Dedication to quality means a lot for people—both behind the scenes and those purchasing your product.
If you are prepared to start your own private brand, Aceves Spirits is here to help. We are family-owned-and-operated with three generations of agave growers and industry experts who provide the highest quality tequila on the market. Our team will assist you every step of the way to make your tequila brand dreams a reality.