Exclusive - CHINA: Patron Spirits to launch in China after high-alcohol Tequila ban lifted
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.
The third part of this month's management briefing, in which Euromonitor considers the year ahead for the global drinks industry, sees Jeremy Cunnington and Spiros Malandrakis look at the spirits cate...
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 ...
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...
Just before January is out, Ian Buxton is here for his first comment piece of 2014, and he's keen to consider what the fist big M&A transacion of the year will mean in the Scotch whisky industry....
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 ...
Wine in Ireland industry profile provides top-line qualitative and quantitative summary information including: market share, market size (value and volume 2008-12, and forecast to 2017). The profile a...
- Pernod's Portman Group penalty - a coincidence?
- A tobacco analogy soft drinks will want to embrace
- just The Preview - SABMiller's Q1
- Comment - Coke Life: Hit or Miss?
- just Five Years Ago: A-B InBev sells Oriental
- Diageo faces public consultation over W&M sale
- Remy posts Q1 sales drop as Edrington loss bites
- Bacardi to fight US football team legal action
- William Grant silent on Drambuie bid talk
- Pernod Ricard swings at Portman Group