Exclusive - CHINA: Patron Spirits to launch in China after high-alcohol Tequila ban lifted

By | 1 August 2013

The opportunity for Tequila in mainland China is seen as significant

The opportunity for Tequila in mainland China is seen as significant

Premium Tequila producer Patron Spirits is gearing up to launch its products in China as the country's long-running ban on high-alcohol versions of the spirit has been lifted.

China is expected to become the world's second-biggest Tequila market within five years now the restriction has been removed, according to Mexico's National Chamber for the Tequila Industry. The group anticipates annual export levels to mainland China to reach 10m litres by 2018. 

An agreement between Mexico and China's Government was reached in June, four years after negotiations over the ban began. 

The ban prevented Tequila containing more than two grams of methanol per litre being imported into mainland China. Concerns centered around the health implications of high-alcohol Tequila, but after an investigation it is understood China's authorities accepted the products are safe. 

Patron confirmed to just-drinks this week it plans to launch its full portfolio in China soon. “Product is on its way,” a company spokeperson said. “Our focus will begin with the major hubs - Shanghai, Beijing - and we'll grow from there.” 

Ten Tequila brands are already sold in China - including Jose Cuervo, Pernod Ricard's Olmeca Altos and Proximo's 1800 - that meet the country's regulations. Others include Pepe Lopez and Camino Real.

But Francisco Jiminez, the Tequila chamber's director general, told just-drinks today (1 August): “With this new opportunity in the China market we are expecting important growth to make it the second-largest market for exported Tequila in five years.”

In Apri, it emerged that Mexico had asked China to give a "scientific justification" for the ban.

The US is the largest importer of Tequila, around 130m litres annually, followed by Germany where the market is around 7m litres. 

Expert analysis

Tequila & Mezcal in China to 2016: Databook

"Tequila & Mezcal in China to 2016: Databook" contains detailed historic and forecast Tequila & Mezcal consumption analysis, segmented at a category level. It provides year on year growth figures for Tequila & Mezcal category in China, as well as volume data based on price segments and alcoholic strength.

Sectors: Emerging markets – BRIC, Spirits

Companies: Pernod, Ricard

View next/previous articles

Currently reading -

Exclusive - CHINA: Patron Spirits to launch in China after high-alcohol Tequila ban lifted

There are currently no comments on this article

Be the first to comment on this article

Related research

Pernod Ricard: Premiumization and decentralization fuelling growth in mixed macroeconomic environment

Over the last 10 years of rapid acquisitions, Pernod Ricard has built a strong portfolio of premium brands on a global scale. Most of its brands enjoy a leading position in international markets. The company has adopted a decentralized operational st...

Pernod Ricard Groupe in Spirits (World)

With very limited resources for expansion through acquisition until at least 2015, Pernod Ricard’s key focus has to be through organic growth. The profile looks at how its current portfolio of brands is positioned and what it should do to maximise it...

Pernod Ricard Groupe in Wine (World)

As well as ranking third in the global spirits market, Pernod Ricard is the world’s fourth largest wine producer. This profile analyses the company’s efforts to adapt its wine offer to challenging and changing conditions in core markets and to levera...

Related articles

Analysis - Moet Hennessy offers boost to Pernod Ricard's H1 prospects

Moet Hennessy's full-year results yesterday must have made satisfying reading for the company's parent LVMH.

just For Subscribers - The week in drinks

Here are the ten most viewed, subscriber-only items on just-drinks this week:

UK: Sport, music alcohol tie-ups under spotlight with new code

Drinks companies that sponsor sport, music and cultural events in the UK will be monitored under a new industry code being introduced today (31 January).

just-drinks tagline

Not a member? Join here

Decrease font sizeDecrease font sizeDecrease font size Increase font sizeIncrease font sizeIncrease font size Comment on this article Email this to a friend Print this page