The Guadalajara Reporter

Distillers eye new mega market as China opens doors to tequila

In the coming days, the first shipment of high-quality tequila made from 100 percent blue agave will make its ways across the Pacific Ocean on its journey to China.

The most populous country in the world has had tequila, but only in the form of mixtos with agave blended with other sugars to make the spirit. While only a trace, the methanol content in tequilas made only with blue agave – as is the case with any top notch bottle – exceeded regulation levels for Chinese imports.

But earlier this year, Mexican President Enrique Peña Nieto was able to strike a deal with Chinese officials allowing an exception for Mexico’s signature drink, said Ramón González Figueroa, the general director of the Tequila Regulatory Council, an organization that monitors the quality of tequila.

The spirit, which has seen its global reputation grow as higher quality bottles have become available worldwide, is an important export for Mexico. The ability to ship tequila made from 100 percent agave to China is a significant accomplishment for distillers as it opens a country that could become the second largest market for exports after the United States.

Distillers of the drink are already looking at seizing that opportunity.

“We’re looking for a distributor in China,” said Beatriz Beltrán, the exports manager for Tequila Don Roberto. The distiller sends its product to the United States, Canada, Chile and Nicaragua and it has the capacity to export to China as well, she said.

As one of the oldest brands, and as a Mexican company, Tequila Don Roberto would like to have a presence in China, Beltrán added.

Like any new market, China must be entered carefully and continue to be monitored for imitation tequila products, said Héctor Quirarte Gutiérrez, the institutional relations director for Tequila Herradura. Still, opening the country to higher quality tequilas is an important development for the industry, he said.

Tequila takes its name from a town cradled among volcanoes northwest of Guadalajara. The spirit can only be manufactured in Mexico, and only in certain parts of Mexico.

The entire production process – from choosing the land and planting blue agave seedlings to fermentation and bottling – is monitored by the Tequila Regulatory Council, or CRT, an agency funded by tequila distillers.

A big part of the CRT’s job is working with foreign countries to recognize the denomination of origin of tequila. Countries generally comply through trade agreements that accept tequila as a unique product that can only be produced here. Obtaining that distinction has become increasingly important as phony tequila makers have looked to exploit the spirit’s growing popularity.

Most recently India and Australia have recognized the denomination of origin, González Figueroa said.

There are different levels of protection around the world, and the CRT is continuously looking to strengthen some of its agreements, including one with the United States.

“We have a good level of protection in the United States,” González Figueroa said. Mexico, Canada and the United States each recognize the distinction of Canadian whisky, Tennessee whiskey and tequila. Even so, the CRT is looking to further fortify that by obtaining a certification mark from the United States. Currently, tequilas can be mixed with liqueurs and sold as a new product. That’s not a problem so long as those bottles are marked correctly, but sometimes when exported out of the United States, they’re incorrectly labeled as tequila in the destination country, González Figueroa said.

The CRT is also working with Brazil to recognize tequila’s denomination of origin and with customs officials in countries in the European Union. While countries in the European Union have already recognized the unique character of tequila, the CRT is hoping customs officials there will crack down further on phony bottles of the spirit as they come through the borders.

Meanwhile, at CRT’s headquarters in Zapopan on Avenida Patria near Avenida Guadalupe, technicians in white lab coats test the alcohol content and amount of solids in every batch of tequila that’s going to be sold in Mexico and throughout the world.

Each bottle must meet strict requirements. As it turns out, the drink that has long fueled Mexican parties is taken pretty seriously here.