The tequila industry is dominated by a handful of major tequila houses. The biggest firms benefit from the combined advantages of scale, vertical integration, and deep supply chain networks. In comparison, competing brands and distributors find it a lot harder to overcome challenges such as agave price volatility, inconsistent product quality, and disruption to tequila deliveries.

There is a way to level the playing field - Team Arquero

Smaller brands are the most vulnerable, but even distributors with significant brand recognition and sales volumes are not immune to the risks. In recent years, the tequila industry has been challenged by a spiraling cycle of supply chain disruption that upends business models, harms profits, and even threatens a company’s viability. 

However, there is a powerful way to level the playing field: partnering with an independent tequila distillery that offers the strategic advantages of a large, farm-to-factory operation.

At Destilería Arquero, we have full control over every step of the tequila production process. We cultivate agave on our own farms and produce tequila in our new, state-of-the-art distillery. We offer the production scale and vertical integration that enables us to extend the stability and support of the majors to brands and distributors of virtually any size. Our partnership approach enables our customers to match their biggest competitors on stability, consistency, financial margins, and ability to innovate.

1. Supply Chain Stability

One of the most critical challenges in the tequila industry is securing a dependable supply of quality agave. Agave plants take years to mature, and fluctuations in agave availability have significantly impacted tequila production. The result is price spikes and unpredictable supply. We own and operate more than 100 agave farms, which ensures that we always have sufficient raw material to meet production demands. This is a significant advantage for our customers, as it mitigates supply chain disruption risk and allows for better long-term planning.

2. Price and Margin Stability

Controlling the entire production process gives us the ability to stabilize prices for our partners, helping them to protect their margins. Suppliers that lack vertical integration – where agave sourcing and tequila distillation are separated – are more subject to supply and price unpredictably. Our farm-to-factory operation helps us to iron out market volatility, allowing our customers to focus on their core business. For brands competing against larger, more established players, the ability to forecast costs and maintain stable distribution is a key strategic advantage.

3. Consistent Product Quality

End-to-end control over agave cultivation, harvesting, tequila formulation and distillation allows us to maintain tight quality control throughout production. Our customers can be confident that their products always meet their precise specifications. Our partnership approach enables brands and distributors to capture a broader range of market opportunities, from high-value and mass-market bottles to ultra-premium labels that appeal to the most discerning drinkers. 

4. Expertise Across the Production Process

Destilería Arquero has earned more certifications for the quality and production standards of its agave than any other distillery. Our expertise encompasses agriculture, laboratory-controlled formulation, cutting-edge manufacturing, and supply chain integration. For brands that are newer to the industry or those looking to refine their products, our team brings invaluable knowledge that reduces risk, accelerates product development, and maximizes cost efficiency.

5. Scope for Innovation

Consumer trends in tequila are rapidly evolving. Brands and distributors in highly developed markets, such as the United States, face unparalleled competition for consumer attention. In emerging markets, such as Europe and Asia, consumers are awakening to the breadth of tequila varieties and quality is a key driver. The ability to innovate for local preferences is paramount, but that’s hard to achieve without the backing of a sophisticated partner. Destilería Arquero offers the facilities and expertise that enables our partners to experiment with new techniques, aging processes, and flavor infusions. For brands looking to offer something truly unique, our capacity for customization and innovation is a major advantage. 

Whether your brand or distribution operation is large or small, there is no avoiding the industry giants. The solution is not just scaling up – it’s about making smart partnerships that give you the freedom to compete without the distractions of supply chain problems.

Destilería Arquero is an independent, vertically integrated distillery that offers brands and distributors the benefits of a large-scale operation while maintaining the agility and creativity to define their differentiation. From reliable supply to consistent quality, from price predictability to platforms for innovation, we provide the tools, insights and partnership mentality that can help your business thrive.