Agave Distillers, South Africa’s ”tequila” producing distillery, has invited potential shareholders or equity partners to invest in the business ahead of its product launch into the global market.
The company launched its home-grown brands of agave spirit locally in November last year and was preparing to take on the international market, chairperson Keith McLachlan said on Thursday.
The drink is not marketed as tequila because the name is considered a trademark of Mexico, even though the two products are virtually identical.
McLachlan said international interest in the South African product had been ”overwhelming” particularly from the United States, Europe, Asia and Africa because there was a worldwide tequila shortage.
Production of the drink in Mexico has been severely curtailed after a virus struck the country’s Agave crops, which is used to produce tequila, causing the global shortage.
The South African product is already exported to Australia, Angola, Madagascar and the Seychelles but the export potential to the US was by far the most attractive, McLachlan said.
The company was in the process of raising the capital required for the production, marketing and distribution process.
Since receiving product, trademark and label approvals to import the brand into the US, McLachlan said the time was right take the business to the next level.
”It is for this reason that we are inviting individuals to participate in the private placement of shares as well as for potential equity partners to consider investing with us,” McLachlan said.
”We are now on the cusp of a major international thrust and the outlook is monumental. There is unprecedented interest, in particular from the US, which is the biggest tequila-consuming nation in the world and who are facing a shortage of the product.”
McLachlan said that to break into the international market it was necessary to raise the capital required for a boost in production at the company’s Graaff-Reinet distillery as well as a concerted and effective international marketing campaign and distribution programme.
He said a prospectus and evaluation of his company was underway by Midboard Financial Services after which a share scheme may be made available.
A delegation from Mexico’s Tequila Regulatory Council, which strictly controls production in that country, visited South Africa last month to discuss possible cooperation with Agave Distillers in tequila production. Talks to this effect were currently underway.
McLachlan said liquor distributors Halewood International had been appointed to take charge of local distribution and marketing.
The distillery at Graaff-Reinet has the capacity to produce about 100 000 litres of the drink a month but McLachlan aims to double this figure in its second year of operation. – Sapa