Mexico To Bottle Tequila In Russia

The Mexican government has granted a unique license for bottling Mexican-produced tequila in Russia for the first time. Tequila can be extracted exclusively from the ‘Tequila Weber’ variety of blue agave, which is grown in the Mexican states of Guanajuato, Jalisco, Michoacan, Nayarit, and Tamaulipas. The alcohol itself will not be produced in Russia, however the Kaluga-based Kristall distillery will start bottling the product from next year.

The Mexican government registered the right for the exclusive use of the name ‘tequila’ in the second half of the 20th century. In 1974, a law was adopted stating that only blue agave liquor produced in certain regions of Mexico could be branded tequila. Manufacturers willing to produce the drink must obtain permission or a license from the government through the Mexican Institute of Industrial Property (IMPI).

The Kristall spirits plant is one of Russia’s top ten alcohol producers in terms of volume, with an annual capacity exceeding 20 million liters. It dates back to Russian Imperial times.

Chris Devonshire-Ellis of Dezan Shira & Associates comments “The move is an interesting one as it enhances Mexico’s ability to export one of its most famous products, maintain quality control, while lowering costs and enhancing local marketing. This is because instead of individually bottling in Mexico – using local glassware – the product can be shipped in bulk to Russia; and bottled there at lower export cost to the producer. It can also be labelled in accordance with local market requirements such as the Cyrillic alphabet. Instead of purely having a buyer and consumer relationship, companies such Crystal are now adding some production value to an imported item. This could be extended to other mass imported items such as tea, wine, and other consumables.”

The Russia Tequila consumer market is expected to grow by about 7% per annum from 2023-28.

Russia’s bilateral trade with Mexico expanded by 210% in 2022. The main products that Russia exports to Mexico are semi-finished iron, vaccines, blood, antisera, toxins and cultures, and nitrogenous fertilizers. Mexico exports auto components, parts and accessories, and medical Instruments.

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