Mezcalum Co-founders Discuss Potential Tariff Impacts on Spirits

Potential Tariff Impact on Mezcalum

• 💡 Mezcalum co-founders Abe and Erin Lichy discuss the potential impact of President Trump's tariffs on Mexican-made spirits.
• ⚠️ The tariffs, if implemented, could lead to higher prices for tequila and mezcal.
• 🎯 Mezcalum has taken proactive measures to mitigate margin impact, including forward purchasing contracts and locking in favorable exchange rates.

Business Strategy and Mitigation

• 💰 The company has mitigated margin exposure by about a third and is working with their importer on federal excise tax relief.
• 📈 As a small, independent brand, Mezcalum can absorb short-term margin hits while keeping prices steady, potentially gaining a competitive edge.
• 🛒 While they considered hoarding product, it was deemed more costly than proactive financial measures.

Market Trends and Brand Growth

• 🚀 Mezcalum is experiencing significant growth, with tequila and mezcal projected to overtake vodka as the number one spirit in the country.
• 📈 Agave spirits are currently the only spirits category showing revenue growth.
• 🧩 The founders believe that increased competition and education about mezcal and tequila categories are beneficial to all brands in the space.

Mezcal's Appeal and Brand Origin

• ✨ Mezcal is highlighted as a purer spirit than tequila, as it must be 100% agave by Mexican law, unlike tequila which can contain additives.
• 🚫 Mezcalum's product specifically aims to be less smoky than traditional mezcal, broadening its appeal, particularly to women.
• 💡 The brand was inspired by a trip to Tulum where the founders realized the purity and smoother hangover of mezcal compared to tequila.