Amber Beverage planning to buy agave fieldsBy Amy Hopkins
Amber Beverage Group (ABG) is seeking to establish “field-to-bottle” control over its Tequila production in the face of “feverish” demand for agave.
The spirits firm made its foray into the Tequila sector in 2016 with the purchase of Jalisco distillery Fabrica de Tequilas Finos and its portfolio of brands, including KAH Tequila. ABG later launched the 100% agave Rooster Rojo Tequila.
Speaking to The Spirits Business at the end of last year, group CEO Seymour Ferreira said that “demands on production have changed dramatically” since ABG made the acquisition due to the growing popularity of Tequila and “health-related products in food and drink made with agave”.
He added: “It’s an interesting time because prices are high, demand is high, so it’s a bit feverish at the moment and there’s a bit of a buying frenzy. So we don’t want to take a big step without considering the costs and the opportunity.
“Historically there’s always been ups and downs, but if you look back over the past 30 years the highest price that agave ever got to was about six and a half pesos per kilo, and it’s three times that now.
“Yes, it will be cyclical – it will reset and become more reasonable, but we can’t think about that. We need to think about how we level that out for ourselves, and that’s about having field-to-bottle control over the process. We would like to own our own fields – we need that control.”
Ferreira also told SB that ABG is seeking to triple its revenue over the next four years and become a €1 billion (US$1.14bn) business.
The firm enhanced its global footprint last year after increasing its ownership of UK distributor Cellar Trends and acquiring a majority stake in Australia’s Think Spirits. Also in 2018, the firm took a majority stake in one of Russia’s oldest distilleries, Permalko.