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Lost Explorer CEO: ‘We enter Tequila with humility’
Mezcal brand The Lost Explorer moved into Tequila earlier this year. To celebrate National Tequila Day today (24 July), the brand’s CEO, Tanya Clarke, spoke to us about the move.
For some, expanding into Tequila seemed an obvious move for The Lost Explorer; others questioned the brand’s ability to stand out in a crowded sector. “The Tequila market is more than 30 times bigger than the mezcal market globally,” explained CEO Tanya Clarke. “We enter this category with a lot of humility and a lot to learn.”
Sustainability – both environmental and social – is a key part of the brand, and this will extend into the Tequila business, Clarke confirmed. “We believe the way we have been building our mezcal business – supporting sustainable Mexican enterprise, protecting the artisanal craft, heritage and biodiversity of Mexico – creates a strong foundation for this Tequila launch.
“Given our brand purpose to celebrate the earth by partnering with the best makers, who can create the most extraordinary flavours from the wonderful agave plant – it seems like a natural next step for us.”
To create the Tequila, the brand collaborated with maestro Tequilero Enrique de Colsa, whose experience includes being head distiller at Diageo-owned Don Julio. “Like with Don Fortino Ramos, our maestro mezcalero, we had a strong existing relationship with Enrique de Colsa and a shared set of values,” explained Clarke.
Clarke believes the brand will stand out because of its sustainability credentials and its partnership with de Colsa. “People are interested in accessible new flavours from within Tequila, where they know who and how they were created,” she added. “We also will continue to open up the worlds of mezcal and Tequila and share their similarities and differences, recognising that they are ultimately born from the same plant and provenance.”
While the spirits derive from the same plant, the two industries are vastly different, as The Lost Explorer team has learned. “The sheer scale of the category is the biggest difference for us,” explained Clarke. “We typically count in bottles in mezcal – I’m sure that will change to cases in Tequila.”
Tequila is a fast-growing spirit in most markets, with the agave spirit overtaking American whiskey in value terms to become the second most valuable spirit category in the US last year. Many have predicted this boom will soon slow – but Clarke believes opportunity remains.
“There is still very strong growth in the US and UK markets – and many other markets like Spain for instance. In nearly every case the category is premiumising. Customers and consumers are trading up and looking for higher-quality products with strong provenance and maker-led storytelling.”
She added that while the spirit has long been popular in cocktails, sipping Tequilas are growing, as well as the use of Tequila in a classic spirit and soda mix.
With Tequila’s growing popularity, there have been issues with agave pricing. First, it rocketed; then, it fell – dramatically. Clarke said that Espadín, the main agave used in mezcal, saw a price drop, but Tobala and Salmiana – other agave varietals that The Lost Explorer uses – were less affected. Energy and staffing cost increases have balanced out any savings the brand could have made.
“All of our mezcal is hand-bottled at our palenque in Oaxaca by a team of more than 10 people,” she explained. “We are a small producer, so we are less sensitive overall to the relative reduction in agave costs. Both our maestro mezcalero and our maestro Tequilero select suppliers directly and choose agave based on quality and sustainability credentials. This forms the key part of our agave selection, rather than price only.”
For now, the brand doesn’t intend to explore raicilla or other agave spirits any time soon. “We are always open about the possibilities that might arise in the future but, for now, we are going to focus on growing our portfolio from a mezcal-only range to now Tequila and mezcal.
“We will be introducing a reposado Tequila early in 2025, so there’s a lot of experimentation happening in the background.”
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