The history of tequila goes back two thousand years.
That’s when the Aztec Indians figured out how to ferment juice from the blue agave plant.
It was created as a ceremonial drink that had the power to comfort those who’d lost a cherished friend or family member.
But its popularity didn't take off until the Spanish showed up to crush the Aztec empire. You see, the Spaniards decided that el tequila was intoxicating and delicious. So they created a trade route to a tiny Mexican town called Tequila.
The Spanish made a fortune from tequila — and now it’s time for you to do the same.
It’s Been a Tough Year for Main Street Investors
To set the stage here, let me explain how most people invest.
When most folks invest, they stick with stocks and bonds.
For decades, the typical portfolio for Main Street investors has been 60% stocks, 40% bonds.
A 60/40 portfolio is meant to provide growth as well as stability. So even if your stocks are crashing, hypothetically, your bonds should keep you above water.
But it’s been a tough year for such investors. The stock market’s been terrifying. But at the same time, bonds are getting crushed, too.
For Main Street investors, this has led to crashing portfolios and surging anxiety.
An Alternative to Stocks and Bonds
But the rich invest differently…
They don’t have typical 60/40 portfolios. And this difference might explain why they keep getting richer.
You see, according to the Motley Fool, the rich mainly invest in “alternative assets.”
What are these alternatives? Well, for starters, they include private startups and private real estate deals — the kind we focus on here at Crowdability. But they also include “collectibles” including fine art, baseball cards, vintage sports cars, and (you guessed it) tequila.
In 2020, the wealthy had about 50% of their assets in these alternative investments, and just 31% in stocks. The remainder was made up of bonds and cash.
50%! Why would they do such a thing? Let’s take a look…
Three Reasons the Wealthy Invest in Alternatives
For starters, investing in alternative assets provides diversification. So even if the stock market and bond market keep crashing, these assets can keep growing in value.
Furthermore, alternative assets can offer a hedge against inflation. In inflationary times like we’re in today, that’s a valuable trick.
But perhaps most important of all, they can provide market-beating returns.
For example, over the last 25 years, early-stage startup investments have provided 55% annual returns. That’s about 10x higher than the historical average for stocks.
And meanwhile, according to the Motley Fool, over the last decade:
- Wine has shot up 127% in value.
- Classic cars have gone up 193%.
- And rare whisky is up an astonishing 478%.
But recently, interest in tequila has grown even more than that of whiskey…
Take a look.
Tequila: A Fast-Growing $5 Billion Market
First of all, consumers have started doing more online searches for tequila than for whiskey:
Secondly, for the year 2021, the #1 spirit by revenue growth was Tequila and its “cousin” Mezcal, at 30.1%. In contrast, revenue growth for Whiskey was just 6.7%.
Makes sense. The most popular cocktail in America is the Margarita. (Two parts tequila; one part lime juice; one part triple sec.) Here’s the list, compliments of binwise.com:
And lastly, the price consumers are willing to pay for premium tequila is surging. In fact, according to alts.com, its price is currently growing a stunning 75% year over year.
Perhaps that explains why Tequila has become a $5.2 billion market in the U.S. alone.
So, how can investors like you get access to this high-potential market?
Let’s take a look…
How to Invest in Tequila
There are three ways to invest in tequila: bottles, barrels, and the distilleries themselves.
That’s where you can find everything from $50 bottles that you might end up drinking yourself, to $7,000 Patron en Lalique.
Barrels — But if you’re truly seeking the biggest investment returns, you’ll need to invest in barrels of tequila.
For example, a company called House of Rare operates a special underground cellar in Tequila, Mexico where it ages ultra-premium tequilas for at least 3 years.
You invest in the barrels, and it handles everything else, from bottling to storage. After 3 years, it will propose various “exit” strategies so you can make a return. For example, it might propose that you export the barrel elsewhere, or sell it back to tequila producers, or even turn your barrel into special bottles.
As an investor, you can visit House of Rare in Mexico, see your barrel, and meet the whole team. And by the way, if you’d like to sell your barrel before 3 years, you can aim to do so via the House of Rare’s blockchain technology.
Distilleries — And of course, since you’re reading this on Crowdability.com, we’d be remiss if we didn’t mention the opportunity to invest in a startup tequila company.
Here’s one called Espanita. It won "Tequila of the Year" in 2021. It’s already being sold at retailers including Walmart, Publix Liquors, and Total Wine. And it’s been featured everywhere from Forbes, to Rachel Ray’s TV show, to Bartender Magazine.
To learn more, just click here »
Keep in mind, all the typical caveats about investing apply here:
For example, don’t invest more than you can afford to lose; invest in what you know; and be sure to dip your toe into the water before diving in.
Furthermore, many alternative investments (like the tequila barrels mentioned above) aren’t guaranteed to be “liquid.” That means they can’t necessarily be converted into cash at the snap of your fingers.
So don’t invest your rent or grocery money into these offerings. Just a “shot” or two will do.
But if you’re looking to invest like the rich, Tequila might be a great place to start!