Tequila maker says tariffs won’t affect prices. Here’s why

While some tequila makers have warned they might have to implement price hikes to offset tariffs, Colorado-based Suerte Tequila said it has been able to keep overhead prices low enough that it will absorb the levies if necessary.

The Jalisco-made tequila label will not pass costs on to customers.

“Absorbing the cost of the tariff goes right along with our philosophy and the way that we were setting up and designing and growing our business,” said Laurence Spiewak, Suerte Tequila CEO.

Suerte Tequila is a small-batch, single-estate, handcrafted tequila that launched in 2012. One year into operation, Suerte acquired majority ownership of its factory in Mexico from the distiller’s family, Spiewak told CNBC.

Along with its distillery, Suerte is one of a few registered tequila brands that owns its agave fields and has long-term partnerships with growers, which Spiewak said give it an edge against the competition.

“99% of brands our size do not own their own factory in Mexico and are co-packing or co-manufacturing with a whole different price structure,” Spiewak said.

Another reason Spiewak said he doesn’t understand the industry bracing consumers for price hikes is that agave prices have been falling. “Agave prices are down tremendously, so why would we raise prices?” he asked.

IWSR in its 2024 analysis of agave noted that prices hit a record 32 pesos (USD $2) per kilogram in 2022, but by February 2024, prices fell to 5 pesos (USD $0.30) per kilogram.

“Tequila margins are stronger than ever,” Spiewak added.

Spiewak’s tone is a shift in departure from larger industry players like Jose Cuervo tequila-maker Becle and Don Julio producer Diageo, which have warned about possible price hikes.

Becle previously said it could face an $80 million impact to its balance sheet this year if President Donald Trump moved forward with tariffs on Mexican products. A Jefferies analyst estimated Diageo, meanwhile, could see group sales decline by as much as 1.5%.

“I completely understand why [larger brands] are up in arms about a 25% tax on business,” Spiewak said. “Our whole cost structure and pricing, I mean everything when it comes to manufacturing, packaging and then exporting from Mexico into the U.S. and importing here is completely different.”

While Spiewak said owning the land allows his company to control overhead production costs that keep prices low, Brian Rosen, chairman at adult beverage investment firm InvestBev, said Suerte’s real competitive advantage is its independence.

“Any of these forward-facing companies that have shareholders and boards of directors are getting hammered because the shelf pull is slowing down, while at the same time the price is going up and at the same time as Americans are drinking less,” Rosen said. “Someone’s got to take a bullet and these smaller companies don’t have any of that kind of pressure.”

Compared with the broader spirits industry in 2024, tequila and mezcal were the only spirits category that saw sales growth, with the U.S. importing $5.2 billion worth of tequila and $93 million worth of mezcal from Mexico, according to the Distilled Spirits Council of the U.S.

Suerte’s tequila shipments grew 55.8% in 2024 compared with the year prior. That’s continued in 2025, growing 43% year-over-year through February, Spiewak said.

“The key to our success is maintaining focus in a very noisy space,” Spiewak said. “Raising prices on consumers already looking to spend doesn’t make sense for us right now.”