Tequila Prices Skyrocketing
Contact: Lynn M. Walding, Administrator 515.281-7402 / 515.229.7777
Ankeny, Iowa (July 10, 2000) – Tequila’s popularity isn’t
the only thing that is skyrocketing, so is its price!
“The wholesale price of tequila will increase 20 – 25%
effective August 1st, resulting in substantially higher prices for
Iowa consumers,” warns Lynn Walding, Administrator of the Iowa
Alcoholic Beverages Division.
The price increase is not the first in recent months. The price
of many tequilas has doubled in the past year. Industry analysts
expect a liter bottle of Juarez Tequila, the second best selling
brand in Iowa, to retail at $16.99 after the price hike, a 99% increase
over the $8.99 retail price from last year.
Higher prices result from a shortage of the blue agave, a cactus-like
plant from which tequila is distilled. A freeze two years ago severely
damaged the crop in the tequila region of Mexico, the sole source
of the region-specific brand of mescal designated as “tequila.”
Industry experts cite growing demand as a second factor for higher
prices. Tequila based drinks, such as margaritas are increasingly
popular in the United States, fueling American consumption of nearly
80% of the total Mexican production.
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