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Tequila producers pouring on promotions in China

By China Daily (China Daily) Updated: 2014-07-22 07:30

Tequila producers pouring on promotions in China

For most Chinese consumers, tequila-a distinctive product from Mexico made from the fermented juice of agave plants-is an exotic liquor compared with foreign rivals cognac and whiskey.

But it may not be long before they list the exotic beverage as among their favorite during get-togethers or in bars as Mexico pushes ahead with an ambitious plan to make China its second-largest market after the United States within five years.

Mexico exported 525,000 liters of tequila to China in 2013, a 28 percent increase over 2012. According to the Tequila Regulatory Council of Mexico, the export momentum started in 2009, with solid double-digit growth in the following four years.

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This led the Mexican government to set an annual export target of 10 million liters of tequila for the Chinese market by 2019.

Mexico exported 132 million liters of tequila to the United States, its largest export market, last year.

The United States accounted for nearly 80 percent of Mexico's tequila exports last year, followed by Germany and Spain.

Despite the relatively small tequila market in China, Eduardo Orendain, president of the National Chamber of the Tequila Industry, sees a large potential for Mexican tequila exports to the country.

"When the two countries' presidents agreed to allow the imports of 100 percent agave alcohol (in China), they have opened up vast prospects for the tequila industry," he told China Daily.

Before President Xi Jinping's visit to Mexico in June 2013, China imported only "light tequila" with a lower intensity of agave juice out of concerns for its high methanol content. As part of an agreement to increase bilateral trade, China agreed to lift the ban, greenlighting imports of premium tequila from Mexico.

To take advantage of the favorable policy, the National Chamber of the Tequila Industry launched a campaign in Beijing and Shanghai to promote the products to Chinese traders and consumers in late June.

But it has not all been toasts and celebrations for the upstart imports.

"The major difference between China and established markets is that people in the US and Europe have better knowledge about tequila. This is what we need to work hard on (in China)," Orendain said.

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