MHD Newsletter July 2023

Mark your calendar for: National Tequila Day July 24th

TEQUILA 101 Types of Tequila

TEQUILA FACTS Tequila has an appellation of origin.

MARKET OBSERVATIONS

Whilst Tequila makes up a small share of spirits consumption is rising, especially within the premium ranges.

Like champagne, cognac, and some fine wines, tequila can only be produced in five regions in Mexico—Guanajuato, Michoacán, Nayarit, Tamaulipas, and Jalisco, though far and away the largest producer is Jalisco. It must be made from the blue agave plant. To be classified as tequila, a spirit must be at least 51% derived from blue agave with the rest made up from another neutral spirit. Only the agave heart is used to make tequila. Known as the piñas, are cut out, cooked, ground down, and fermented to make tequila. People have been enjoying tequila for a LONG time. Tequila’s predecessor, called “pulque,” was imbibed as early as 150 B.C. As with wine, terroir can influence the taste of tequila. The type of soil agave is grown in has a large impact on the flavor of tequila. Broadly speaking, tequilas from the Highlands (Los Altos) often have grassier and sometimes sweeter flavour profiles, while those from the Lowland (El Valle) can have an earthier, more mineral quality. There are five official classifications of tequila. Blanco (also known as Silver tequila) and Joven (aka Gold) are the youngest varieties.

Blanco - Bottled immediately following distillation, some are aged for a short period of time. Reposado - Tequila aged between 2-12 months in oak barrels. Joven - A mixture of Blanco and Reposado tequilas. Añejo - Tequilas aged between 1-3 years in oak barrels. Extra Añejo is aged 3 years or more. Mixto - Tequila containing less than 100% blue agave, usually mixed with sugars or other spirits.

Leading brands in the category in Hong Kong

Top Performing Agave-Based spirits in Hong Kong

Brand

Owner

Brand

Cuervo Joven de Lo’s Dorados Potter’s Olmeca El Jimador

Potter’s Joven de los Dorados Ocho

Proximo La Cofradia Andrew Peller Pernod Ricard Brown-Forman

Source: IWSR Drinks Market Analysis 2023

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INTEL INSIGHTS

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