American-made tequila takes shot at market
By Daisy Nguyen, Associated Press Writer | February 23, 2005
TEMECULA, Calif. -- J.B. Wagoner planted blue agave around his 25-acre property as an inexpensive landscaping alternative to water-loving citrus or avocado groves.
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But now he's found another use for the plants.
After years of research and experimentation, Wagoner plans to use the 1,000 agaves to produce tequila in hopes of cashing in on the distilled spirit's growing popularity.
"I figure in the worst case, I'll have a nice landscape," said Wagoner. "In the best case, I'll create a new market for American-made tequila."
Tequila consumption increased 5.8 percent in 2004, with Americans downing 8.5 million cases or about $1 billion worth, according to the Distilled Spirits Council of the United States.
Despite the demand, there is an obstacle to Wagoner's plan. Tequila is as sacred to Mexico as champagne is to France, and international trade laws forbid use of the name tequila unless it's made from blue agave in the Mexican state of Jalisco.
Wagoner, who claims to be the first maker of blue agave liquor in the United States, came up with a solution. He labels his liquor "Temequila," after the city of Temecula, 85 miles southeast of Los Angeles, where it's produced.
Wagoner also put an American flag design on the 750-milliliter bottles, scheduled to hit the market in April. The $58 price tag is aimed at sophisticated consumers who are driving the luxury spirits industry.
"We've already gotten a surprising level of demand for the product from people looking for something new and different," he said.
Shawn Kelly, spokeswoman for the distilled spirits council, said demand for high-end liquor is being driven by a stronger economy, a re-emerging "cocktail culture" and new laws in several states allowing liquor stores to stay open longer.
Although tequila sales in the United States ranked ninth in 2004 behind vodka, rum, gin, whiskey and other liquors, high-end tequila brands saw big growth at 15.4 percent.
"People are drinking less beer and more vodka, whisky and rum," said Tom Pirko, president of Bevmark, a beverage consulting firm in Santa Barbara. "It's a great time to be in the spirits business."
Wagoner said he spent six years learning to grow and process blue agave, which involves fermenting its sweet nectar into wine, then distilling it into liquor.
Pirko warned that Wagoner will face challenges in trying to gain a share of the market.
"Authenticity is a real issue," he said. "Tequila is made in Mexico, by people who have made it for many years."
Wagoner seemed unconcerned.
"There are some 50 different kinds of tequilas from Mexico," he said, "but there's only one that's 100 percent agave tequila, made in the USA."
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Chef2Chef News Desk