Jay Baer Defines ‘Craft Tequila’ Amidst Market Saturation

In a recent LinkedIn post, Jay Baer explores the evolving landscape of the tequila market and introduces a new definition for “craft tequila” to help consumers navigate the growing number of brands. Baer, founder of Convince & Convert, highlights the increasing consumer desire to understand the origins and production methods of their spirits, a demand that has outpaced traditional sorting mechanisms.

Baer points out the current challenge consumers face, likening it to standing before a wall of hundreds of tequila bottles. He notes that the market has become so saturated that distinguishing between brands is increasingly difficult. Historically, the primary differentiator has been the presence or absence of additives.

“The conversation needs to expand. Not away from additives, but past them, toward a broader and more useful way to consider tequila: CRAFT.”

Defining Craft Tequila

To address this, Baer, through his publication The Tequila Report, has established a specific definition for “craft tequila.” This definition is built upon three core criteria that a brand must meet:

• It uses no industrial diffuser.
• It self-declares that it does not use abocantes (additives, sweeteners, colors, or flavors).
• It sells fewer than 300,000 bottles in a six-month period in Nielsen-scanned accounts.

As Baer explains, the inclusion of a volume limit is inspired by the craft beer industry. He states, “Because craft has always meant scale as much as method, and the clearest precedent is beer.” The Brewers Association, for instance, defines a craft brewer with specific production volume and independence criteria. Baer’s definition borrows this logic, adjusting the scale for tequila production.

The Rationale Behind the Volume Cap

Baer elaborates on the significance of the 300,000-bottle ceiling. He argues that this limit serves a similar purpose to the production caps in craft beer, emphasizing that “craft has always meant scale as much as method.” While independence was considered as a fourth requirement, Baer notes that the size ceiling effectively excludes most brands owned by larger conglomerates anyway.

“Drawing the line at 300,000 bottles over six months was a judgment call that was carefully examined and considered before we implemented it.”

Limitations and Transparency in the Definition

Despite the clear criteria, Baer is transparent about what this definition does not guarantee. He emphasizes that the absence of additives is self-reported by the brands and has not been independently verified. This is due to the operational and legal complexities of verification at scale, as well as the regulatory environment.

According to Baer, the Tequila Regulatory Council (CRT) is the sole authority and does not offer a verification process for additive use, as additives are legal. He clarifies that using additives does not inherently make a tequila bad, but mastering excellent tequila production without them signifies a higher level of craftsmanship.

“A media publication like The Tequila Report is entitled to describe and categorize. This is journalism, not confirmation or accreditation.”

Baer concludes by framing the list provided by The Tequila Report as a journalistic endeavor aimed at providing useful categorization for consumers, rather than an official accreditation. This approach empowers consumers with new criteria to make more informed choices in a rapidly expanding market.