The Development of the Tequila Value Chain
Read Time: 4 min.
Premium tequila brands do not get their exceptional reputation by delivering subpar products to their consumers. Everything from the taste of the spirit to the brand’s marketing strategy to the bottle design make a difference when it comes to prestige in the tequila industry. But what about the parts of the process that are less easy to control?
When a consumer buys a product on a shelf, they are expecting a certain level of quality. Up until packaging, the tequila developer is responsible for this oversight. But after the tequila is bottled, there are many remaining steps in the process where things can go awry before the product reaches its customer. Because of this, tequila brands must develop a value chain so ensure product quality from start to finish.
The Early Stages of the Tequila Value Chain
To start with, the quality of the tequila product begins at growth and harvest. Tequila developers can start to ensure product caliber by the care they take with the agave and its farmland. Keeping the agave plant thriving and tequila production sustainable should remain at the heart of a brand’s mission. Farming with minimal intervention ensures that agave land continues to thrive and the industry will endure in the long run.
Another important part of the tequila value chain is in the harvesting process. The jimadores, or agave farmers, and anyone else working the land must take great care with the plant. Tequila developers can ensure this through proper training and education, as well as providing farm workers with the rights and resources they need to do their jobs well.
Next in the business model of the tequila value chain is the manufacture of the product itself. Keeping ovens and cooking equipment well-maintained is crucial to the eventual success of the product. The same goes for distillation equipment. A good value chain will safeguard from errors happening due to faulty manufacturing equipment. This requires a keen eye on material management and supply as well as regular maintenance checks.
The warehouse and moving equipment also must be tended to frequently. Accidents can easily happen in warehouses without the machinery or training. From forklifts to cranes to docks, executing a regularly scheduled inspection will go a long way to ensuring the safety of both warehouse employees and eventually, product consumers.
The bottling process is another step in the chain that requires close oversight and inspection for any defects or breakage, prior to packaging. After bottling and packaging, the finished product is stored in a warehouse. This must be a clean, dry, and climate controlled environment. Inspections of the facilities for leaks or fire hazards will be of the utmost importance.
Why Invest In A Tequila Business Right Now?
If investing in a tequila business is on your radar, you could not have picked a better time to do it. Ultra-premium tequila is currently enjoying surge in popularity, fueled by emerging celebrity brands, high-value acquisitions, smart marketing campaigns, and massive growth potential.
Logistics and Shipping
Now come the steps in the value chain when the risk of defect becomes higher. It’s not easy to ship glass bottles without risking potential breakage. Even boxes can become dented and damaged, resulting in an unsellable product. Keeping the product packaging intact and looking brand new is critical. So working with reputable logistics equipment and transportation suppliers is important, especially for new and emerging premium tequila brands.
If shipping internationally, tequila brands must have an airtight process for both the origin country and destination country’s customs and legal requirements. Often, this step includes thorough product inspection control, so this is not something to overlook. The same goes for any import processes. Once the product is ready for distribution to retail, further logistics will be required, including additional transportation of the product in the destination country. Working with credible, experienced suppliers is always a smart decision.
The Final Steps
Finally, the product is ready to be distributed for the enjoyment of consumers. A strategic plan will include a focus on digital channels, keeping information accurate and up-to-date. Aligning a tequila brand’s promotions and marketing with its target audience is also important, which should involve market research to understand consumers’ needs and interests.
Lastly, there is the shipping to the final product consumer. So often, products have made it through all steps in the value chain with no problems, only to encounter damage during customer shipping. Again, prioritizing proper packaging through use of a reputable supplier will make a big difference in this final step.
Contact Aceves Spirits
If you’re starting your own tequila brand and looking for a developer with all the industry know-how you need, reach out to us at Aceves Spirits. Our focus on developing sustainable and unique products comes through in everything we do, from the way we treat our workforce to the way we protect our farmland. Tell us about your project and we’ll tell you how we can help you make it environmentally sound and financially successful.