Close Menu
News JournosNews Journos
  • World
  • U.S. News
  • Business
  • Politics
  • Europe News
  • Finance
  • Turkey Reports
  • Money Watch
  • Health
Editors Picks

Harvard Sues Trump Administration Over Student Visa Program Termination

May 23, 2025

U.S. Meteorologists Warn of Data Gaps from Weather Balloon Site Reductions

May 23, 2025

Contempt Ruling Expected in Trump Administration Deportation Case

April 17, 2025

Trump Proposes Self-Deportation for Immigrants with Future Legal Reentry Possibility

April 10, 2025

Democrat Challenges Party’s Strategy on Trump Opposition

April 19, 2025
Facebook X (Twitter) Instagram
Latest Headlines:
  • Potential Breakthrough in Search for Victims of Rogue Filipino Police Officers
  • Mahomes Discusses Throne Coffee Investment and NFL’s Extended 18-Game Season
  • Myanmar’s Military Ruler Thanks Trump for Letter on Tariff Concerns
  • Noninvasive Brain Technology Enables Thought-Controlled Robotics
  • PKK’s First Group Releases Weapons in Last-Minute Move
  • Trump’s 200% Pharma Tariffs Pose Risks of Rising Drug Prices and Reduced Margins
  • Former Justice Department Official Sounds Alarm Over Dire Legal Consequences
  • PKK to Conduct Historic Disarmament Ceremony
  • UK Economy Shrinks Again in May Amid Government Growth Efforts
  • Native Hawaiian Man Faces Increased Sentence for Hate Crime Against White Victim
  • State Department to Lay Off 15% of U.S. Staff in Upcoming Days
  • Tech Giants Face Scrutiny Over Industry Practices and Innovations
  • Trump’s Tariffs Create Unprecedented Challenges for Bedding CEO
  • Explosive-Loaded Donkey Kills Soldier and Injures Two in Colombia
  • Activist Investor Reduces Stake in Johnson Matthey by 50%
  • Norway Embraces Elon Musk Amidst European Backlash
  • Rachel Brosnahan Discusses Lois Lane Role and Local Superheroes in “Superman”
  • Clashes Erupt Between Protesters and Border Patrol Agents Near Ventura County Farm
  • Trump Proposes 35% Tariffs on Canadian Goods
  • Trump Plans 35% Tariff Increase on Canadian Goods
Facebook X (Twitter) Instagram
News JournosNews Journos
Subscribe
Friday, July 11
  • World
  • U.S. News
  • Business
  • Politics
  • Europe News
  • Finance
  • Turkey Reports
  • Money Watch
  • Health
News JournosNews Journos
You are here: News Journos » Business » Tequila Maker Assures Prices Remain Unchanged Despite Tariffs
Tequila Maker Assures Prices Remain Unchanged Despite Tariffs

Tequila Maker Assures Prices Remain Unchanged Despite Tariffs

News EditorBy News EditorApril 3, 2025 Business 6 Mins Read

A Colorado-based tequila brand, Suerte Tequila, is taking a stand against potential price hikes amidst increasing tariffs on Mexican imports. Unlike other tequila manufacturers who are bracing consumers for higher prices, Suerte Tequila’s CEO, Laurence Spiewak, insists that the company will absorb any tariffs incurred rather than passing the costs onto customers. Through its unique position as a small-batch producer that owns its factory and agave fields in Jalisco, Suerte Tequila has established itself with a competitive edge in a market that is witnessing fluctuations in agave prices.

Article Subheadings
1) An Overview of Suerte Tequila’s Operations
2) Economic Landscape and Agave Prices
3) Comparison with Larger Competitors
4) Growth and Expansion of Suerte Tequila
5) Industry Trends and Consumer Behavior

An Overview of Suerte Tequila’s Operations

Founded in 2012, Suerte Tequila has carved out a niche for itself in the crowded tequila market by focusing on small-batch production and maintaining control over its entire production process. The company operates a dedicated factory and agave farm in Jalisco, Mexico, a region renowned for its premium tequila production. Laurence Spiewak, the CEO of Suerte Tequila, describes the brand as a “single-estate, handcrafted tequila,” which gives it certain advantages over many of its competitors who do not own their distilleries. This ownership enables Suerte to control the quality and cost of production, thereby allowing it to offer competitive pricing even in the face of potential tariffs on imported alcohol.

The company’s decision to absorb potential tariff costs rather than passing them on to consumers is a testament to its commitment to quality and customer satisfaction. Spiewak asserts, “Absorbing the cost of the tariff goes right along with our philosophy and the way that we were setting up and designing and growing our business.” This proactive approach positions Suerte Tequila as an appealing choice for consumers looking for quality without the escalating prices seen in the broader market.

Economic Landscape and Agave Prices

The agave market has experienced significant fluctuations in recent years, which has considerable implications for tequila production costs. According to a 2024 analysis by IWSR, agave prices peaked at a record high of 32 pesos (approximately USD $2) per kilogram in 2022, but by February 2024, those prices plummeted to just 5 pesos (approximately USD $0.30) per kilogram. This drastic drop has led to enhanced profit margins for tequila producers, allowing companies like Suerte to remain competitive.

Spiewak has expressed confusion over widespread industry concerns regarding potential price hikes, particularly when raw material costs are declining. He remarked, “Agave prices are down tremendously, so why would we raise prices?” This lower input cost gives Suerte Tequila a unique opportunity to maintain attractive pricing while ensuring profitability.

Additionally, the strength of tequila margins in the current economic landscape supports Suerte’s strategy. As the cost dynamics shift, companies that can absorb shocks without transferring costs to consumers will have a distinct competitive advantage in a market marked by volatility.

Comparison with Larger Competitors

In stark contrast to industry giants like Jose Cuervo (produced by Becle) and Don Julio (owned by Diageo), Suerte Tequila has taken a more holistic approach to pricing. Both larger brands have warned of possible price increases and adverse financial impacts stemming from recent tariffs. Becle previously noted that it could encounter an $80 million hit to its financials if tariffs on Mexican goods are enacted, while analysts have projected a potential decline in sales for Diageo of about 1.5% due to these pressures.

Spiewak acknowledges the challenges faced by larger brands, stating, “I completely understand why [larger brands] are up in arms about a 25% tax on business.” He elaborates that the operational model of Suerte—focused on ownership and independence—differs fundamentally from that of larger companies reliant on complex supply chains and shareholder expectations. This radical divergence in business structure has insulated Suerte from some of the financial pressures manifesting in larger corporations.

Growth and Expansion of Suerte Tequila

Suerte Tequila’s growth trajectory has been impressive, showcasing a remarkable 55.8% increase in tequila shipments in 2024 compared to the previous year. This trend has continued into 2025, with a reported year-over-year growth of 43% through February. Such growth is not only a testament to the brand’s operational effectiveness but also its ability to engage a consumer base looking for both quality and value.

The company’s strategy, as articulated by Spiewak, involves a clear focus on maintaining a coherent brand identity in a saturated marketplace. “The key to our success is maintaining focus in a very noisy space,” he notes, suggesting that amid growing competition, Suerte’s dedicated approach sets it apart. By prioritizing consumer satisfaction and quality over short-term pricing strategies, Suerte positions itself for sustained growth.

Industry Trends and Consumer Behavior

In a market context, tequila and mezcal are emerging as the only spirits categories demonstrating consistent sales growth in 2024, with the U.S. importing approximately $5.2 billion worth of tequila and an additional $93 million worth of mezcal from Mexico. This positive trend signals a robust demand for agave spirits, marking a departure from declining sales trends seen in other spirit categories.

Consumer behavior appears to favor brands that offer transparency, quality, and strong customer relationships. As noted by Brian Rosen, chairman at adult beverage investment firm InvestBev, smaller companies like Suerte are positioned to thrive in this environment. “Any of these forward-facing companies that have shareholders and boards of directors are getting hammered because the shelf pull is slowing down,” he explains. The pressure to satisfy shareholders often stifles innovation and flexibility, whereas smaller companies can operate nimbly, adapting quickly to market shifts.

No. Key Points
1 Suerte Tequila is absorbing potential tariff costs instead of passing them onto consumers.
2 Agave prices have decreased significantly, allowing for better profit margins.
3 Suerte’s business model provides a competitive advantage over larger brands with complex operations.
4 The company has reported substantial growth in shipments and sales in recent years.
5 The tequila market is seeing increasing consumer demand as other spirits face declines.

Summary

Suerte Tequila’s approach to navigating tariffs and agave price fluctuations reflects a proactive and consumer-focused strategy in an evolving market. By absorbing potential costs rather than increasing prices, Suerte has positioned itself favorably amidst larger competitors who struggle with financial pressures. With continued growth and a unique operational model, Suerte serves as an illustrative case of resilience and innovation in the spirits industry.

Frequently Asked Questions

Question: What makes Suerte Tequila different from other tequila brands?

Suerte Tequila distinguishes itself by being a small-batch, single-estate brand that owns its factory and agave fields in Jalisco, Mexico. This ownership allows for greater control over production quality and costs.

Question: How has the agave market impacted tequila pricing?

The agave market has seen significant price reductions, which has allowed tequila producers like Suerte Tequila to maintain profitability without raising consumer prices.

Question: What trends are currently shaping the tequila market?

The tequila market is experiencing robust sales growth compared to other spirits, driven by increasing consumer interest and demand for premium agave spirits. This trend reflects a shift towards quality and brand transparency among consumers.

Assures Business Ethics Business Growth Business News Business Technology Consumer Trends Corporate Finance Corporate Strategy Economic Outlook Entrepreneurship Global Business Innovation Investment Opportunities Leadership maker Management Market Trends Mergers & Acquisitions prices Remain Retail Business Small Business Startups Supply Chain tariffs Tequila Unchanged
Share. Facebook Twitter Pinterest LinkedIn Email Reddit WhatsApp Copy Link Bluesky
News Editor
  • Website

As the News Editor at News Journos, I am dedicated to curating and delivering the latest and most impactful stories across business, finance, politics, technology, and global affairs. With a commitment to journalistic integrity, we provide breaking news, in-depth analysis, and expert insights to keep our readers informed in an ever-changing world. News Journos is your go-to independent news source, ensuring fast, accurate, and reliable reporting on the topics that matter most.

Keep Reading

Business

Mahomes Discusses Throne Coffee Investment and NFL’s Extended 18-Game Season

6 Mins Read
Business

Trump’s Brazil Tariffs May Increase Coffee Prices

6 Mins Read
Business

Family Offices Invest in Sports: From Fantasy Apps to Ski Resorts

6 Mins Read
Business

Space Startup Secures $187 Million for Orbital Drug Production

6 Mins Read
Business

Eli Manning Declines Ownership Bid Opportunity

5 Mins Read
Business

Generic Semaglutide Available from Hims & Hers as Novo Nordisk Patent Expires

5 Mins Read
Mr Serdar Avatar

Serdar Imren

News Director

Facebook Twitter Instagram
Journalism Under Siege
Editors Picks

Appeals Court Allows Trump to Temporarily Enforce Anti-DEI Executive Orders

March 14, 2025

Trump Administration Increases Oversight of Potential Iran-Backed Cells in the U.S. Amid Strike Considerations

June 19, 2025

Old Clip of Schumer Praising Trump as Business Prodigy Reemerges Online

April 21, 2025

Chinese Nationals Charged with Smuggling Fungus Linked to Agroterrorism into the U.S.

June 13, 2025

Trump Proposes Sanctions Against Russia Following Ukraine Attack

March 7, 2025

Subscribe to News

Get the latest sports news from NewsSite about world, sports and politics.

Facebook X (Twitter) Pinterest Vimeo WhatsApp TikTok Instagram

News

  • World
  • U.S. News
  • Business
  • Politics
  • Europe News
  • Finance
  • Money Watch

Journos

  • Top Stories
  • Turkey Reports
  • Health
  • Tech
  • Sports
  • Entertainment

COMPANY

  • About Us
  • Get In Touch
  • Our Authors
  • Privacy Policy
  • Terms and Conditions
  • Accessibility

Subscribe to Updates

Get the latest creative news from FooBar about art, design and business.

© 2025 The News Journos. Designed by The News Journos.

Type above and press Enter to search. Press Esc to cancel.

Ad Blocker Enabled!
Ad Blocker Enabled!
Our website is made possible by displaying online advertisements to our visitors. Please support us by disabling your Ad Blocker.