Made in Moscow: Mexican Government Grants Russia Unique License to Bottle Tequila

(Photo: Moscow Distillery Crystal)

The Mexican government is teaming up with Russia’s state-owned Kristall Distillery to expand tequila’s global footprint. As part of a newly inked deal, Russian distilleries will be allowed to bottle mixto tequila on-site for the first time.

Historically, tequila has been grown, distilled and bottled exclusively within Mexico following a protected designation of origin granted in 1974. Over the years, the rules have changed only slightly — today, bottling rights have been granted to a select few nations, so long as the tequila is first shipped in bulk from Mexico.

The shift toward Russia — where the local market is dominated almost entirely by vodka — represents an unexpected change of pace.

“The move is an interesting one as it enhances Mexico’s ability to export one of its most famous products, maintain quality control, while lowering costs and enhancing local marketing,” Chris Devonshire-Ellis of Dezan Shira & Associates told Russia Briefing.

“This is because instead of individually bottling in Mexico – using local glassware – the product can be shipped in bulk to Russia; and bottled there at lower export cost to the producer. It can also be labeled in accordance with local market requirements such as the Cyrillic alphabet.”

Though Russia is the world’s 4th largest alcohol market by volume, agave spirits have yet to catch on.

In 2023, Russian tequila imports are expected to reach around three million liters. In comparison, the United States annually imports over 300 million, while European countries like Germany, Spain and France clock in around 6-10 million.

In the absence of immediate demand, granting bottling rights to Russia may have wider implications for trade between the two nations. In a June interview, Mexican ambassador Eduardo Villegas Megias indicated a desire to boost tequila exports to Russia, qualifying that his country would be “very interested” in negotiating better import prices for Russian fertilizers and steel.

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