Tag #Agave Oversupply

How does the oversupply of agave impact tequila producers' profitability, and what strategies are they employing to mitigate these effects?

Increased agave supply, coupled with reduced consumer spending on premium tequila, has created an oversupply and decreased prices. This market correction follows a period of exceptional growth fueled by the pandemic, and is leading to company-wide cutbacks in marketing and hiring. The potential imposition of tariffs adds further uncertainty.