Discover Suerte Tequila’s dedicated distillery and agave farm located in Jalisco, Mexico.
Image credit: Suerte Tequila
While several tequila manufacturers have indicated they might need to raise prices due to tariffs, Suerte Tequila, based in Colorado, has managed to keep its production costs low enough to absorb any increased expenses if they arise.
The Jalisco-produced tequila brand will not transfer these costs onto its consumers.
“Taking on the cost of the tariffs aligns with our company’s philosophy and the way we structured our business,” stated CEO Laurence Spiewak of Suerte Tequila.
Founded in 2012, Suerte Tequila is a small-batch, single-estate, handcrafted brand. Within a year of its inception, it achieved majority ownership of its Mexican distillery from the founding family, as Spiewak revealed to CNBC.
In addition to its distillery, Suerte is among the few registered tequila brands that own its agave fields and maintain long-term partnerships with growers, which Spiewak believes gives them a competitive advantage.
“Ninety-nine percent of brands our size do not own their own factory in Mexico and instead co-pack or co-manufacture, dealing with a different pricing model,” said Spiewak.
He also questioned the industry’s predictions of price increases, noting that agave prices have significantly decreased. “Agave prices have plummeted, so why would we raise prices?” he asked.
According to IWSR’s 2024 analysis of agave, prices soared to a record high of 32 pesos (USD $2) per kilogram in 2022, but by February 2024, they fell to just 5 pesos (USD $0.30) per kilogram.
“Tequila profit margins are currently stronger than ever,” Spiewak affirmed.
Spiewak’s perspective contrasts with that of larger industry players like Jose Cuervo’s parent company Becle and Don Julio producer Diageo, both of which have warned about potential price increases.
Becle indicated it might face an $80 million impact this year due to proposed tariffs on Mexican goods, while analysts at Jefferies predicted Diageo could see a group sales decline of up to 1.5%.
“I completely understand why larger brands are concerned about a 25% tax,” Spiewak admitted. “Our entire cost structure, including manufacturing, packaging, and the logistics of exporting from Mexico to the U.S., is fundamentally different.”
While Spiewak mentioned that land ownership enables his business to control production costs and maintain low prices, Brian Rosen, chairman of beverage investment firm InvestBev, highlighted that Suerte’s true competitive edge lies in its independence.
“These larger companies with shareholders and boards are facing serious challenges due to slowing sales, rising prices, and decreased alcohol consumption among Americans. Smaller companies like Suerte, however, are not under that same pressure,” Rosen noted.
In comparison to the broader spirits market in 2024, tequila and mezcal were the only categories experiencing sales growth, with the U.S. importing $5.2 billion in tequila and $93 million in mezcal from Mexico, according to the Distilled Spirits Council of the U.S.
Suerte’s tequila shipments increased by 55.8% in 2024 over the previous year. This growth has continued into 2025, with a 43% year-over-year rise through February, as stated by Spiewak.
“Focus is key to our success in such a crowded market,” Spiewak concluded. “Raising prices for consumers who are already cautious about spending doesn’t align with our strategy right now.”
Suerte Tequila, a Colorado-based brand known for its small-batch, handcrafted tequila, is taking a unique approach in the volatile market of spirits by absorbing potential tariff costs rather than passing them on to consumers. Laurence Spiewak, the CEO of Suerte, emphasized that their business philosophy aligns with this strategy, enabling them to maintain low overhead costs without raising prices despite looming tariffs that have caused concern among larger tequila makers, such as Jose Cuervo and Diageo.
Founded in 2012, Suerte Tequila distinguishes itself by owning its distillery and agave fields in Jalisco, Mexico, an advantage that only a few other brands of their size possess. By acquiring majority ownership of their factory within a year of launching, Suerte has established long-term partnerships with agave growers, providing them with a competitive edge over many other tequila brands that typically rely on co-packing arrangements and face fluctuating costs associated with external manufacturers. As Spiewak noted, “99% of brands our size do not own their own factory in Mexico,” giving Suerte a unique position in terms of pricing stability.
Spiewak expressed confusion over the industry’s widespread expectation of price hikes, arguing that the declining prices of agave—dropping from a peak of 32 pesos (approximately USD $2) per kilogram in 2022 to just 5 pesos (around USD $0.30) in early 2024—should not justify increased retail prices. He mentioned that “tequila margins are stronger than ever,” indicating healthy profit potential without the need to burden consumers with higher costs.
In stark contrast to larger players like Becle, which owns Jose Cuervo, and Diageo, concerned about the financial impact of a 25% tariff, Suerte’s independent structure allows it more flexibility. Becle predicted an $80 million hit to its balance sheet, while analysts estimated a potential sales decline for Diageo of up to 1.5%. Spiewak acknowledged the pressure larger brands face but signaled that Suerte’s cost structure, which is significantly different from theirs, allows them to navigate these challenges without feeling the same financial strain.
Brian Rosen, chairman of the beverage investment firm InvestBev, highlighted that Suerte’s real competitive advantage lies in its independence. He noted that larger corporations are under pressure due to sluggish sales and rising prices, which is not as pronounced for smaller companies like Suerte, who do not face the same investor pressures.
The tequila segment is performing notably well within the spirits industry, with 2024 data from the Distilled Spirits Council indicating that tequila and mezcal are the only spirit categories experiencing sales growth. The U.S. imported $5.2 billion worth of tequila and $93 million worth of mezcal from Mexico. In this favorable climate, Suerte reported an impressive 55.8% growth in tequila shipments in 2024 compared to the previous year, a trend that has continued into 2025 with a year-over-year increase of 43% through February.
Spiewak underscored the importance of focus in a crowded marketplace: “The key to our success is maintaining focus in a very noisy space.” He reiterated that raising prices is not a sensible option for their company at this juncture. By strategically absorbing costs and maintaining control over their production processes, Suerte Tequila aims to enhance its market position while continuing to offer competitive pricing to consumers. Overall, Suerte Tequila is an example of how smaller, independent brands can thrive in a challenging market by leveraging their unique operational advantages and a steadfast commitment to their business philosophies.
