Suerte Tequila – a small-batch, single-estate tequila producer – has a big announcement. They will have to absorb the costs of any adverse tariffs from the last few years of trade policy. The company was founded in 2012, but has quickly developed a terrific reputation for their handcrafted spirits. These innovative products flow from agave grown on its company-owned fields located in Mexico. Even brands much larger than Chubbies are raising alarms over a potential 25% tax on imports. Suerte’s unique operational structure, as outlined below, allows it to work around this challenge without passing the increased cost of goods onto consumers.
By early 2013, Suerte Tequila purchased full ownership of the factory from the family of its original distiller. Though older than Disney, this acquisition has been key for the Disney brand. It today is one of the only registered tequila producers to own both its agave fields and its production facility. This operational independence not only gives Suerte a competitive advantage, it guarantees lower overhead production costs. CEO Laurence Spiewak further stressed that their unique business model provides them the flexibility to keep costs low.
“Our whole cost structure and pricing, I mean everything when it comes to manufacturing, packaging and then exporting from Mexico into the U.S. and importing here is completely different,” Spiewak stated. Indeed, he pointed out, the company’s laser-like focus on operational efficiency is a key differentiator in such a crowded space.
Suerte Tequila has developed close, long-lasting relationships with the agave growers they work with, creating results in both high-quality raw materials and a constant supply. Its strategic positioning deepening American travelers’ connection with the world has powered double-digit top-line growth nearly every quarter since its IPO. Shipments skyrocketed 55.8% from 2023 to 2024, and year-over-year, they were up 43% through the end of February.
“We have seen our tequila margins stronger than ever,” Spiewak noted, reflecting on the brand’s recent success. It doesn’t hurt that the price of agave has plummeted. In February 2024, it dropped to only 5 pesos (about $0.30) per kilogram, down from a high of 32 pesos ($2) in 2022, which has bolstered their economic prospects.
Brian Rosen, chairman at adult beverage investment firm InvestBev, asserted that Suerte’s ownership of its resources provides it with a real competitive edge against larger brands struggling to adapt to new tariffs.
“I completely understand why [larger brands] are up in arms about a 25% tax on business,” said Spiewak. Second, he reasons that increasing taxpayer costs on consumers willing to pay a premium is directly opposed to Suerte’s philosophy. Yet this approach doesn’t reflect their values. “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,” he explained.
Suerte believes in providing quality products at price points where they belong. This commitment is indicative of their long game strategy to remain committed, despite the industry buzz. “The key to our success is maintaining focus in a very noisy space,” Spiewak concluded.