He is considering starting his own brand of the Mexican spirit, mezcal, but has some doubts about the project’s viability in this now-booming market for tequila’s lesser-known cousin. Alternatively, he just has a little difficulty understanding all the steps he has to take or options. You want to be part of the boom; perhaps as a passionate no-holds-barred capitalist who seizes opportunity when it calls. Or alternatively as someone with a pure passion for mezcal and its artisanal production methods and the rudimentary tools of the trade. Maybe you are somewhere in between. Is there still room for your project given that practically every month there is a new line of products on the market that you want to export to from Mexico? It likely has its sights set on importing from the southern state of Oaxaca, where most of the agave-based aguardiente is distilled.

The simple answer to the market saturation question is yes, there are still practical trading opportunities. But this assumes that you have a reasonable price point for the quality of mezcal you have in mind and a strong distribution/promotion plan.

Start by learning as much as possible about the regulatory framework of the jurisdiction in which you want to distribute mezcal. In short, it is very different from how you would import and sell shirts, microwaves or sofas. Presumably, you already have at least a cursory understanding of the distribution of alcohol in at least your home country. But remember that, for example, with respect to Canada, there are governments (ie, of the province of Ontario) that control at least some aspects of all sales of spirits, beer, and wine. If you are considering the US, there are some states that are subject to the three-tier system. Accordingly, take your time and learn before you dive in.

There are matters that you should at least consider before even visiting Oaxaca with your mezcal business in mind. They affect the extent to which your plan will be feasible and, more importantly, successful. Think about:

• ABV (alcohol by volume) of the spirit, because making that determination will affect the price you pay for your mezcal and the final retail cost to consumers, and will have an effect on your target market. It should be between 36 and 55 percent, though it’s suggested that the closer you get to the lower end of the range, the less successful you’ll be at attracting those who are already fond of the spirit.
• Packaging in terms of bottle, lid, labeling including seal. Are you considering a standard bottle or making a mold? Will it be a more or less standard 750ml shape, or do you have a stockier bottle with a shorter neck in mind? If it’s the latter, the weight and shape can negatively affect the extent to which bartenders will be inclined to grab it from a shelf containing several other products. Are you considering natural cork instead of artificial, and why? Would you rather put your money on the label instead of a heavy, expensive bottle? If you’re leaning towards the latter, keep in mind that a shipping pallet can hold only 500 bottles instead of 900 bottles, increasing your final cost per unit.
• Whether you want your mezcal to be high priced, medium priced or cheap.
• Decide if you will sell only white / young (clear without aged) or if you will consider having an aged mezcal in your repertoire. Why?
• Will you start with a single species of agave, such as espadín, and then expand your offerings over time, or hit the market with a bang? Do not forget that there is a middle ground.
• Decide if you will initially work with a single palenquero or with more. Do you expect exclusivity over all certified mezcal from your palenquero and recognize that, at least initially, this might not be in your best interest?
• You may want to consider a start-up approach plan, reach an agreement with a palenquero who is not yet certified and is looking for capital to follow that route by which he, through you, has access to the export market , whether national gold international.
• Is the imported plan ancient (typically distilled in clay and crushed in a relatively rudimentary way) or artisanal (traditionally distilled in copper pot stills? There are other permutations and differences between these two categories.
• You should consider whether you would be prepared to live in Oaxaca or, at a minimum, visit the city/region of the state where your operation is located several times a year. Alternatively, you can have one or more full-time employees to run it.
• Can you afford to start a project that won’t necessarily produce enough revenue for your continued viability?
• What type and amount of capitalization are you considering?
• Determine the most prudent approach in terms of the number of bottles to initially import into your market and the long-term goal. This is likely to affect your decision on the type and size of distillery/distilleries you wish to partner with and the final number of palenqueros when your project is operating at its full potential.
• Legal matters such as contracts, registrations, and filings must be considered not only for the jurisdiction you wish to import the mezcal to, but also for Mexico. There is a relatively sophisticated multi-departmental regulatory administrative framework that you must comply with in order to export mezcal, which is why a Mexican lawyer is suggested, better yet Oaxacan with experience in both intellectual property and spirits.

The brand is, of course, important, but sometimes other factors play a bigger role in impacting the success of a mezcal project. Your brand must be registered in Mexico even if you have no interest in the national market. Therefore, you should consider a name that you believe is available in the jurisdiction of your proposed market, as well as Mexico. Do not spend an excessive amount of effort and resources on developing a brand until you have confirmed that the name is not used in Mexico. Some entrepreneurs actually wait until they have been to Oaxaca and decided on a palenquero, then select a name, or wait until they are in the region and have somehow been inspired to the point where a marketing concept emerges. , including the name.

The foregoing is an enumeration of a limited number of considerations that must be weighed at the beginning of the process of embarking on a mezcal import project. The list is far from exhaustive, and is meant simply to alert those interested in entering the mezcal business to its complexity. Proceed with caution and explore every detail meticulously, thereby maximizing the chance of success.