Licor Zone invites qualified investors to participate
ARANDAS, Mexico, Sept. 1, 2015 /PRNewswire/ -- Tequila continues
to gain interest among consumers across the world with the global
demand rising significantly each year. Exports of tequila from
Mexico increased at a compounded
annual growth rate of 4.5 percent over the past five
years.1 On the other hand, agave, the raw material used
to manufacture tequila, is expected to face a severe shortage in
the near future and increase in price by more than 100 percent by
2018.1 Distilleries must equip themselves to mitigate
the anticipated risk resulting from this rising cost of raw
materials.
Unable to withstand the rising production cost, a significant
number of small and medium-sized distilleries may possibly shut
down or be forced sell their facilities between 2015 and 2018.
Large distilleries could capitalize on the situation and expand
their manufacturing capabilities by leasing, renting or buying
these facilities. This is what Licor Zone will accomplish by
grouping several small and medium distilleries under one
roof.
Demand for the drink is projected to rise with China removing the ban on Mexican 100 percent
tequila in 2013. The ban was originally imposed because of
tequila's high methanol content. The
United States was the largest importer of tequila until
2012, accounting for approximately 75 percent of the export market
for Mexico.5
China is expected to grow as the
second largest importer by the end of 2018, importing more than 10
million liters.5 Thus, rising demand for the drink will
likely keep the distilleries running at almost 100 percent
utilization rates. However, the rising price of the raw material
poses a severe threat to the industry.
Only opportunities for large liquors buying groups like Licor
Zone.
Although the raw material costs are expected to increase moderately
for the larger distilleries, certain opportunities exist for these
distilleries to explore. Larger distilleries could have the
opportunity to buy, rent or lease these small and medium-sized
facilities over a period of time. On the other hand, these large
companies could engage in a third-party production agreement for
their brands in these facilities.
"I am proud to be part of Licor Zone expansion. The idea of
regrouping several small and medium distilleries under one roof is
brilliant, this will allow Licor Zone to become a heavy weight in
the tequila business by reducing cost and increasing profitability"
said Alfredo Zapata, General
Manager.
For more information
Contact Licor Zone at:
Licor Zone S.A. de C.V.
Km 10, Carretera Tepatitlan- Arandas
Arandas, Jalisco, Mexico
+ 52 1 (449)-962-0225
WWW.LICORZONE.COM
WWW.LICORZONE.COM.MX