The PEI Liquor Control Commission has been notified of a worldwide shortage of Tequila. Tequila is fermented from the blue agave plant which primarily comes from the Tequila and Guadalajara regions of Mexico.
Recently, a fifth of the agave crop was destroyed either by drought or by angry farmers disputing crop prices with the regions' distillers. The agave plant must grow for 12 years before it can be distilled so the Tequila shortage could be impacted for years before it turns around.
The Liquor Commission is in the process of finding an additional source of supply. Wayne MacDougall, the Commission's Chief Executive Officer, expects the price of a bottle of Tequila to rise 25 - 35% this summer. This equates to somewhere between $10.00 and $20.00 per 750 ml bottle.
As a result of this shortage situation, Tequila suppliers are increasing their prices worldwide. This increase will certainly slow the demand for tequila and force consumers to change to another type of beveraged alcohol product.
"Tequila Sunrise and Margarita's are popular summertime cocktails" quoted Mr. MacDougall. Approximately 6,000 bottles were sold during 1999 which was a 17% increase over 1998. Unfortunately, the present situation is one that is beyond our control.