SINER-GI
GI Products Database
Questionnaire version 190307
The orange questions are mandatory, the others are optional
Author(s)[1] / Author 1: BOWEN Sarah / VAN DER MEULEN Hielke / Author 2: LINK ThierryInstitution(s)[2] / Institution 1: University of Wisconsin-Madison / Wageningen University / Institution 2: INRA
Institution's website
Date of last update / May 20, 2008
1. Product identification
1.1 / Popular name(s) of the product[3] / Tequila
1.2 / Official name(s) as registered (if relevant) / Tequila
1.3 / English name of the product / Tequila
2. Data on the product
2.1 / What is/are the country/ies where the product is produced ?[4] / Mexico
2.2 / Part of the world[5]
2.3 / If federal state : mention the name of the state / Jalisco (entire state), parts of 4 other states
2.4 / Name of the region[6] / Amatitán-Tequila valley, Los Altos (primary production regions)
2.5 / Area of production[7] / Name Jalisco (entire state), and parts ofthe states of Guanajuato, Nayarit, Michoacán, and Tamaulipas.
Size 1,111,946 km2
Description[8]Semi-arid to temperate climate, altitude 1500 m above sea level.
2.6 / Is the product a food product ? /
YES
/ NO2.7 / If NO, which type of non food product?[9]
Textile
Glass and pottery
Metal products / Wool, leather, animal products
Vegetal products (incl. tobacco)
Other
If other, which type?
2.8 / If YES, which type of food product?[10]
Wines and vine-based products
Spirits and liquors
Beers
Other drinks
Cheeses and milk-based products
Processed meat products
Fresh meat
Fresh fish, molluscs and shellfish
Other animal products
Fruit (fresh or preserved) / Vegetable (fresh or preserved)
Vegetal oils and fats
Cereals
Bread, pastry, cakes
Sweets
Tea
Coffee
Cocoa
Other vegetal products
Mineral products, water, etc.
If other, which type?
2.9 / If YES, what is the production period?[11]
During the whole year
During a limited period of the year (seasonal)
In relation with a single harvest per year
2.10 / Minimal duration of aging/maturation[12]Name of the product
No aging/maturation Tequila blanco (less than 2 months)
Aging/maturation less than 1 week
between 1 and 3 weeks
between 3 and 8 weeks
between 2 and 4 months Tequila reposado (at least 2 months)
between 4 and 6 months
between 6 and 12 months
between 12 and 24 months Tequila añejo (at least 1 year)
more than 24 monthsTequila extra añejo (at least 3 years)
2.11 / Description of the product[13] / Tequila must made from at least 51% Agave tequilana Weber, grown within the boundaries delimited by the federal government. The GI protects two basic types of tequila: tequila that is made from 100% blue agave, and tequila that is made from 51% blue agave and 49% alcohol from other sugars (generally sugar cane), known as tequila mixto. Tequila made from 100% blue agave, which is of higher quality and sells for a higher price, must by law be bottled within the GI region. However, tequila mixto, which comprises the bulk of tequila exports to the US, is often sold in bulk and bottled outside of Mexico, to save on transportation costs.
The tequila market is differentiated. Tequila mixto is sold for a lower price and used in cocktails like the margarita. There is also, however, a growing market for premium 100% agave tequilas, which can sell for as high as $400 per bottle in the United States. Sales of premium and ultra-premium tequilas are increasing at faster rates than more standard tequila categories.
2.12 / Description of the process (different steps)[14] / Agave tequilana Weber plants grow best in areas that are at least 1500 m above sea level and that are characterized by volcanic, loamy, and well drained soils, about 1 m of precipitation per year, and temperatures hovering around 20 Cº. Agave plants take 6-10 years to mature. Agave farming is dominated by large-scale, monoculture plantations.
Agave is harvested by professional harvesters known as jimadores.
Tequila is made by fermenting and distilling the juice extracted from roasted blue agave hearts. The hearts are split before baking. Baking takes 18 to 48 hours at a maximum temperature of 90 ºC; baking can be done in steel autoclaves or in traditional woodburning ovens. The roasted agave hearts are pressed to obtain the juices. Fermentation takes 1 to 3 days. After two phases of distillation (generally in copper stills), water is added to dilute the tequila to 38%-43% alcohol. The flavor of tequila can be softened with the addition of one or more of the following ingredients: caramel, natural oak extract, glycerin, or sugar syrup. These ingredients should not total more than 1% of the total weight of tequila before being bottled. Since 2006, however, artificial flavors (i.e., vanilla, lime, mango) can also be added. Tequila is aged in wooden barrels or stainless steel vats. 100% agave tequila must be bottled within the GI region, but tequila mixto is often sold in bulk and bottled outside of Mexico.
2.13 / Does the raw material originate from the designated geographical area? /
YES
/ NO2.14 / If YES, is the geographical origin of the raw material mandatory according to the regulation/code of practices? / YES / NO
2.15 / What features within the geographical area contribute to the uniqueness of the GI product?
(10 lines maximum) / Tequila production originated in the 1500s as a combination of indigenous and colonial techniques and practices.The Amatitán-Tequila Valley and the “Los Altos” region, both in Jalisco, are the traditional areas of agave cultivation and tequila production and have climates well-suited to agave growing. Most tequila producers and farmers believe that the area in which agave is grown translates into the specific taste characteristics of the tequila, and they believe that tequilas produced in the Amatitán-Tequila valley and tequilas produced in the “Los Altos” region have different tastes. However, because the GI region is so large and because the tequila companies source their agave from across the entire region, in practice, the link between the taste of tequila and the terroir or particular regions is lost.
2.16 / Are there specific effects on the environment or landscape due to the production of the GI product?
(10 lines maximum) / Agave cultivation is essential to the livelihoods of the people in central Jalisco, especially in the Amatitán-Tequila valley, where there are very few alternative income-generating activities. However, long-term ecological and economic sustainability of the industry and the region are threatened by enduring conflicts between agave farmers and tequila companies, related to the 'natural' cycles of surplus and scarcity of agave. Currently,due to a surplus of agave, the price of tequila has dropped to below the costs of production. Furthermore, the tequila companies have become almost self-sufficient in their agave supply, increasingly excluding (small) farmers from the production process. Modern cultivation techniques are more input-intensive. Monocropping, cloning, low crop care, and high use of chemicals are making agave cultivation less ecologically sustainable than before.
3. Legal protection at the national level
3.1 / Is the GI protected by a specific legal tool? / YES /
NO
3.2 / If YES, mention the legal tool(s) protecting the GIIndividual trademark
Collective trademark
Certification/guarantee mark / Administrative act
Judicial decision
Registration in a specific register for GIs
3.3 / Date of recognition/registration[15] / 1974 in Mexico; 1994 in the USA and Canada; 1997in the EU
3.4 / If YES, mention the institutions in charge of recognition/registration, control (inspection and enforcement)[16] / Mexican federal state (tequila norms), IMPI (registration of GIs in Mexico), Tequila Regulatory Council (quality control and verification)
3.5 / Explain shortly the general application procedure for obtaining a GI in the country of origin
(10 lines maximum) / Mexican GIs (denominaciones de origen) are property of the Mexican state. However, the Mexican Institute of Industrial Property (IMPI), which was primarily established to protect and regulate patents and trademarks, is the body responsible for authorizing their use. Applications for new GIs are submitted to the IMPI. There is no institution dedicated to GIs in Mexico.
The norms that define production of GI goods are established by the Mexican state, in consultation with supply chain actors. Mexican law requires that the quality, characteristics, production processes, and geographical origin of GIs be certified by an accredited organization. The organizations that monitor and certify compliance with production norms and quality standards—the regulatory councils-- are private organizations.
There are currently 11 recognized GIs in Mexico.
3.6 /
Explain the main issues encountered in the application procedure for this product (difficulties, crucial points, negotiations, decisions by courts)
(10 lines maximum)
/The GI was largely ineffective until it was recognized by the United States and Canada in 1994, and by the European Union in 1997.
In 2003, the Mexican government, supported by many of the smaller tequila companies and other local interests, proposed that the norm for tequila be modified to require that all tequila be bottled in Mexico. However, in January 2006, under pressure from US bottlers and distributors and several of the large tequila companies, the US and Mexican governments signed an agreement in which Mexico dropped the proposed ban on exportation of bulk tequila.
The norms that define production are heavily influenced by the large tequila companies. Revisions made to the norms have predominantly gone in the direction of lowering quality standards and reducing costs, which threatens the quality and authenticity of tequila.
3.7 / If NO, what are the available systems of protection?[17]No appropriate tool
Collective trademark
Certification/guarantee mark / Administrative act
Registration in a specific register for GIs
3.8 / What are/were the main motivations of the initiators to protect the GI?[18]
Fight against misuses/imitations
Enhance the local or rural development
Improve the access to the market
Marketing tool towards consumers for trust and image
Manage and regulate the relevant market
Preserve the traditional know-how
Preserve specific biological resources
Counter rural exodus from marginal areas
Maintain/develop SMEs
4. Data on production and market
4.1 / What is the relevant market ?[19] / Liquors (vodka, rum, etc.)
4.2 / Referring to this relevant market mentioned in the previous question, what is the product's market share in percentage (compared with the relevant market)? / Much smaller market share than competitors like vodka and rum; however, the tequila market has been growing more quickly than its competitors. In the United States, the tequila market accounted for 15% of the growth in revenues of spirits in 2006.
4.3 / What is the closest substitute of the product ?[20] / Other Mexican agave liquors, both generic and those protected with a GI (mezcal, bacanora, sotol)
4.4 / Mention another substitute
(3 lines maximum) / Liquors (vodka, rum, whiskey, bourbon)
4.5 / Are there imitations of the product?[21] / YES / NO
If YES, describe it/them
(3 lines maximum)
4.6 / Are there misuses of the GI[22]? / YES / NO
If YES, describe it/them
(3 lines maximum) / The main issue is adulterated tequila that is sold as “tequila” but not regulated by the CRT.
4.7 / Yearly volume of production
Volume of products ready for trade
Volume of the main ingredient Name of the ingredient
Indicate the current unit of the volume / million liters
Production volume in 1995 / 104.3 (of which 15.6 was 100% agave tequila)
Production volume in 2000 / 181.6 (of which 25.1 was 100% agave tequila)
Production volume in 2005 / 209.7 (of which 70.1 was 100% agave tequila)
4.8 / Over the last five years, has the growth for production volume been :
Positive Negative Stable
How can the evolution of the production volume be explained? / Improved quality control and regulation of tequila production, through the creation of the CRT in 1994; recognition of tequilaGI abroad; involvement of multinational corporations to penetrate export markets; improved image of tequila among upper-class consumers; industrialization of the production process.
4.9 / Is/are the market/s[23] :
Local
Regional / National
Export
If export : which countries ?
(3 main countries or regions of the world) / United States (76%), Europe, Russia, Canada, Japan
4.10 / Give here the price range of the product (producer price, in US$)[24] / Product: Blue agave
Price: $0.05 (2006) to $13.00 (2002); price varies according to cycles of surplus and shortage
Unit: kg
Give here the price range of the product (consumer price, in US$) / Product: Tequila (blanco)
Price: $5.00 -$40.00
Unit: liter
4.11 / Is this product economically profitable for the producers, compared with the standard ?[25] / The tequila industry has been very profitable for the tequila distilleries and bottlers and distributors, but has not generally benefitted the agave farmers. There is currently a surplus of agave and the farmers are being paid less than the costs of production.
5. Supply-chain
5.1 / Number of producers in 2005[26] / 114 (2007)
5.2 / Number of direct employees in the whole processing chain[27]
Equivalent full-time jobs / 34,951
5.3 / How many producers are also farm processors[28] as well as direct retailers ?
What percentage do these producers represent (%) / Insignif.
%
5.4 / Are the firms generally specialised in that product? / YES / NO
If NO, what is the percentage of specialised firms? / %
5.5 / Over the last five years has the growth in the number of producers been :
Positive Negative Stable
5.6 / How many basic ingredients are necessary to produce the product? / 2
Mention the two most important ones[29]: / A : Blue agave hearts / go to 5.7
B : Sugar from other sources / go to 5.8
C : list the other ingredients:
(2 lines maximum) / Caramel, glycerine, natural oak extract, sugar syrup, yeasts
5.7 / Please present the ingredient A
Supply chain description[30]
Recall ingredient name Blue agave hearts
Mention here three production/ processing steps
1 : agricultural production (type milk, pork, cereals) : perennial crop
2 : processing step 1 (fruit sender, milk collector/processor, slaughterhouse, cheesemaker..) : roasting, pressing, fermenting
3 : processing step 2 (wholesaler, cheese mature, cooked meat products, ready cooked pr) : distilling
For ingredient A, how many actors operate at every step (fill in with figures in the boxes : four possible integration structures are provided here)
Primary production / Planting / Cultivation / Harvesting / Total producers (horizontal sum) :
12,000
Processing Step1:
Fermentation / Roasting / Pressing and fermenting / Total processors 1 (horizontal sum):
114
Processing step 2 :
Distillation / Distilling / Total processors 2 (horizontal sum) :
114
5.8 / Please present the ingredient B supply chain
Recall ingredient name 'Addition of generic (imported) sugars
For ingredient B , how many actors operate at every step (fill in with figures in the boxes : four possible integration structures are provided here)
Primary production / Total producers :
Processing Step1: / Total processors 1:
Processing step 2 : / Total processors 2:
5.9 / In the supply chain, the actors developing the main strategic action (key success actors) are (several possible answers):
Agricultural producers
Processors of the first step
Processors of the second step / Retailers
Other private actors
Other public actors
5.10 / Explain why this kind of actors have a strategic position ?
(3 lines maximum) / The distilleries are substantially more powerful than the agave farmers. The agave farmers are not well-represented in the CRT or in the negotiation of the norms. Most distillers own agave plantations and only offer reverse leasing contracts to farmers; they use intermediaries to buy complementary agave from independent farmers; they can keep agave alcohol in stock for years; they are owned by or collaborate with multinational bottlers-branders-distributors who control large market channels.Blue agave is not differentiated on the basis of quality or (subregional) area of origin.
5.11 / Are there strategic actors outside the geographical area? Is an external actor in a strategic position? Explain
(6 lines maximum) / Multinationalcompanies (owners of distibution networks and/ormajor brands); and foreign governments (USA, EU, Japan) that have influence over recognition/enforcment of the GI agreement and import conditions.
5.12 / Define the organisation of the stakeholders (several possible answers)
Producers' association only for the GI
Producers' association not only for the GI
Interprofessional body only for the GI
Interprofessional body not only for the GI / Organization through a public body only for the GI
Org. through a public body not only for the GI
No collective organization
5.13 / Organisation's role: what are the main actions of the collective organisation? (several possible answers)
Definition of the code of practices
Collective promotion / Defence of interests
Quality monitoring
Technical support
5.14 / Describe the collective organisation (history, composition, debates, etc.)
(10 lines maximum) / The agave-tequila supply chain is managed by the Tequila Regulatory Council (CRT, according to its Spanish acronym), a private organization created in 1993. The primary functions of the CRT are to protect the GI for tequila in Mexico and internationally, and to verify and certify compliance with the norm for tequila production (Bowen 2008).
Within the CRT and the supply chain, the distilleries exercise substantial power over the independent agave farmers. In 2005, four firms (Cuervo, Sauza, Herradura, and Cazadores) controlled aproximately 67% of the tequila market. Most major tequila companies are controlled by multinational spirits corporations (e.g., Fortune Brands, Brown-Forman, Diageo).
6. Consumers
6.1 / Define the main type of consumers/customers (several possible answers)
Urban consumers with high income
Urban consumers with low income
Connoisseurs / Local traditional consumers
Diaspora
Consumers are not specific
6.2 / What is the main occurrence of consumption? (several possible answers)
Everyday consumption
Seasonal consumption
Consumption only for celebrations or special occasions
Consumption as an ingredient
6.3 / Cultural context: describe the historic and present cultural consumption context considering its impact on the consumption of the GI product
(10 lines maximum) / Drinks based on fermented and distilled agave juice have a long-standing tradition in Mexico. It is estimated that “agave liquor” was first distilled in the mid-1500s (Limón 2000). The first documented reference to the production of “mescal wine” (essentially modern-day tequila) in Jalisco dates from 1608 (Muría 1996). Today, the drink is deeply rooted in Mexican culture.
6.4 / Describe the consumption of the GI product in relation to the welfare and income contexts
(10 lines maximum) / Within the local region, there is a substantial market for generic (non-GI labeled) agave liquors. Tequila can be found in many price categories. Foreign consumers often drink cheap mixto tequila in cocktails. On the other extreme, there is an emerging market for high-end tequila, especially in the United States. Mexican consumers are in between and tend to be brand loyal.
7. Public support[31]
7.1 / Financial support from public bodies / YES / NO
If YES, describe
(10 lines maximum) / The Mexican government supports tequila distilleries and agave farmers during times of crisis. In 2001, because of agave scarcity and high price level, the government began providing tequila companies with a subsidy of 3 pesos per kg, which was raised to 9 pesos in 2002. In 2006, during a period of oversupply of agave, when prices dropped below production cost level, the SAGARPA (Ministry of Agriculture) allocated 59 million pesos for agave growers. The Mexican government allocated another 200 million pesos for them in 2007. However, agave farmers protested in 2008 that the vast majority of the funds had still not been allocated.
7.2 / Technical support from public bodies / YES / NO
If YES, describe
(10 lines maximum) / Agricultural extension by the Ministry of Agriculture and through universities; technical support and quality control by the CRT (a private organization that is accredited by the federal government)
7.3 / Administrative support from public bodies / YES / NO
If YES, describe
(10 lines maximum)
7.4 / Other kind of support from public bodies / YES / NO
Describe
(10 lines maximum)
7.5 / Summarise and describe the general level of support to initiatives given by public institutions (whatever they are)
(10 lines maximum) / Price subsidies (limited), extension, and support for the GI. However, although the Mexican government technically owns the GI and writes the norm that regulate production of tequila, the government has not intervened on behalf of marginalized supply chain actors (e.g., the agave farmers).
8. General synthesis
8.1 / Brief SWOT analysis
(3 lines maximum per category) / StrengthsTequila has strong cultural and historical ties to its region of origin, the Amatitán-Tequila valley, and also to the “Los Altos” region, where production takes place for more than 100 years. Production volumes have increased tremendously in the last 10-15 years, mainly on the account of exports. Tequila is the product with the greatest impact on the gross domestic product of Jalisco.
An economically strong agro-industrial district (cluster) has developed. / WeaknessesVery large GI area (overproduction potential), and some smaller areas in regions without tequila history (credibility problem).
The norms for the GI tequila do not specify the primary production process, keeping the local rural population and the environment vulnerable.
Lack of regulation of agave supply, causing cycles of suprlus and shortage, which pushes out smaller farmers, destabilizes distlleries and undermine markets.
OpportunitiesEmerging group of high-end consumers in Mexico and the USA, willing to pay for quality tequila.The production of 100% agave tequila more than tripled between 1995 and 2005, whereas cheaper “tequila mixto” (min. 51% blue agave) increased by only 57% of blue aga. Between 1995 and 2005, it more than tripled, wheras mixto grew by only 57%. / ThreatsLack of collective action to dampen the agave supply cycle, and persisting tensions between farmers and distillers (plant blocks, protests).Persisting high risk of pests and plagues, due to the 'industrialization' of agave prodcuction.Potential competion from non-Gi labeled 100% agave spirits.
8.2 / All issues
(20 lines maximum)
9. Information sources
Bowen 2008
Leclert 2007
Bowen and Valenzeual 2005
Valenzuela 2003, 2005
Bowen and Gerritsen 2007
Luna 1991, 2001
González 2002, 2003
Muría 1996
Limón 2000
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