The estimated cost of starting a tequila brand is about $100,000. However, the transporting, taxes, and packaging is not included in this. First is the need for blue agave which is only produced in the 5 states of Mexico. its production is illegal in any other state.
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Things you need to know before starting your own tequila brand
Starting a tequila brand is not an easy process. But if you are willing to start one then you will need to keep a lot of things in mind. Giving a rough estimation in making one tequila bottle will require more than 250 dollars. It includes all harvesting, transporting, tax, machine expense, bottle, labels, etc. bur once you successfully start your brand you will get a lot of profit. So hang on to your idea if you want this. Every new business requires investment so keep your money ready and I will tell you how to start your own tequila brand.
The very first requirement is to grow your blue agave in one state of Mexico. But the Mexican government has banned this. So only five states can operate this. Although in Mexico there are more than 220 types of agave present you will need that specific one for tequila. The name of five states where agave production is not illegal is Jalisco, Guanajuato, Tamaulipas, Michoacan, nayarit. The harvest and transportation along with the taxes and distillery fees will be around 80-90 dollars.
Process of making tequila
This process consists of seven steps.
1) Harvesting of blue agave. More than 20 varieties of agave can be used in this process.
2) Baking- this method requires baking the core of the agave plant. You can also use pineapple. But making tequila from blue agave is a traditional method.
3) The next step is extraction. You will need to make sure that the agave juice has been extracted.
4) Moving on to the other step of fermentation. It must ferment the agave juice.
5) Now put the tequila in the ageing process.
6) Distilling is the last step.
7) The seventh step is called cooking but it happens at the very end.
Time required to make your own tequila brand
After going through the distillation process it will be ready around after eight to twenty years. It’s a very time-consuming process. You will need to have patience for this since it takes so long to make. I will suggest you avoid making a small batch. You can take help from an expert to avoid any mistakes. Making large batches will save your money and resources too. United States people consume the largest amount of tequila so try to keep in mind the choices of your customers. Research what type of tequila is most famous and you will be good to go.
Estimated cost in packing
Along with the quality, the presentation is also important. You will need bottles for storage and labels of your brand. So the approx price for cheap standard bottles labels and caps is five dollars. It is the price per bottle. The cheap-looking bottle can come under 3 dollars while a little fancy will cost more.
Always remember the most expensive tequila will be the one containing 100% agave. As the selling price, the making cost is also high for this. But it gives the most benefit.
Total estimated price for this project
The total includes the making, storing shelves, and the store. It will cost around $100,000 and excluding your store it will cost approx $65,000. To make your stock for tequila you will need money in cash, say $40,000. So before starting the business be prepared for the expense. Because this business is something you can not stop in the middle. If you have started then you will have to complete one batch. Try to make a large portion in one batch.
Is making my brand of tequila is tough?
See, everyone likes this thing called tequila. So the profit in this business is very good. But in terms of legal perspective, it is a little tough. You will barely face any problem in the production and selling process but getting legal authorization is very tough. You will have to go through many quality checks and even after they can check the quality of your brand. Because in most countries alcohol is banned, you will need to find the perfect place for your store where you can access everyone without getting in trouble. you will need a trade agreement before start selling your brand. And an international trading license will be required if you wanna sell in other countries.