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Forbes
06-05-2025
- Business
- Forbes
25th SF World Spirits Competition Showcases Top Whiskey Trends
Sweepstakes Round Judging at the San Francisco World Spirits Competition. Photo, courtesy The Tasting Alliance The San Francisco World Spirits Competition has completed its 25th year. The Competition is the largest in North America and the world's most extensive judging of American whiskeys. Recently, we sat down with Amanda Blue, President of the Tasting Alliance, the organization that sponsors the SFWSC, Maddee McDowell, its Executive Vice President, and Steve Beal, Chair of Judges, for their thoughts on the state of the spirit industry and the results of the 2025 competition. According to Amanda Blue, the headwinds currently sweeping the wine and spirits industry also reverberate in the competition space. She noted: 'We fully expected that we would see fewer entries this year. With the uncertainty surrounding potential tariffs, it doesn't make much sense for a foreign brand to enter an American competition when you are unclear whether you can ship products at a competitive price. We planned on a reduction of 20% in the number of entries for budgeting purposes, and we were gratified that we could do better than what we forecasted with more than 5,000 entries.' She went on to add: 'Not surprisingly, the most noticeable decline was among foreign brands. On the other hand, we had submissions from over 70 countries this year: more countries than ever. Perhaps more importantly, we had virtually the same number of entries, over 500, in the bourbon categories.' 'The SFWSC is the most extensive judging of American whiskey in the world, and we were very pleased that, notwithstanding all of the turmoil in the industry, we had an excellent showing of American whiskey expressions. Over 1,600 whiskey expressions were judged, two-thirds American, underscoring our position as the world's most important American whiskey competition!' Judging the Final "Sweeps Round" at the 2025 SFWSC Photo, courtesy The Tasting Alliance Speaking of whiskey, Steve Beal noted' 'The quality of American whiskeys in general, and bourbon in particular, keeps improving. Part of that continuing quality improvement is the growing maturity of the craft sector, but part of it is the culture of experimentation that now dominates the industry. This culture is no longer limited to just the craft sector. Even the legacy whiskey producers are now committed to expanding the aroma and taste boundaries of what they produce, whether with innovative grains and mash bills, different distillation techniques, or new maturation and cask finishing strategies.' One of the functions of the SFWSC is that it often highlights emerging trends. According to Blue, one of the most significant whiskey trends is the steady expansion of whiskey categories. American single malts and American blended whiskeys are now substantial categories. Ten years ago, noted Blue, 'these categories simply didn't exist'. Beal also pointed out that proofs keep getting higher as distillers look to capture and present more flavorful whiskeys. 'Even the big distillers noted Beal are 'increasingly bottling cask strength and overproof expressions.' 'Sometimes it seems that the standard 80 proof is increasingly the exception rather than the rule'. Maddee McDowell pointed out that the competition saw noticeable increases in the number of entries for Asian Spirits, principally Baijiu, Shochu, and Soju, as well as Non-Alcoholic Spirits, Special Barrel Finished Bourbons, Mezcals, and International Single Malt Whiskey. Blue also pointed out that the gin category showed considerable activity. She noted that: 'The gin market is increasingly regional rather than international. That's true for all white spirits. Given their comparatively lower cost, most domestic gin and vodka producers have difficulty being competitive in foreign markets. Many of our top-rated gins and vodkas are unavailable overseas and rarely, if ever, get judged in international competitions. That makes the SFWSC gin and vodka judging one of the most important in the US.' Not surprisingly, McDowell added, there was a significant shakeout in the RTD sector. 'Overall, the category is still booming and is one of the few categories showing positive growth, both spirit and wine-based RTDs. However, there were too many brands in a growing but hypercompetitive market, and it was inevitable that many producers would exit the industry.' Overall, the SFWSC remains the largest spirit competition in America and easily the world's most authoritative judging of American whiskeys, notwithstanding the turmoil in the beverage industry. Consumers aren't going to stop enjoying alcoholic beverages, noted Blue, adding: 'The industry will bounce back; we're managing for the other side of the trough. We will be ready and waiting when the spirits industry recovers!' The results from the 2025 SFWSC, including the world's largest American whiskey judging will be released starting the week of May 5th. Stay tuned for our exclusive coverage of the world's top spirits.
Forbes
22-04-2025
- Business
- Forbes
Tariffs Are Already Hurting Tequila Producers And Importers
Talk of tariffs has already destabilized the tequila industry. If the tariffs go into effect, some experts predict the economic harm won't be limited to agave farmers and tequila producers. When it comes to tequila and tariffs, talk has not been cheap. In March, the Trump administration briefly instated a 25% tariff on Mexico. Though it was soon temporarily suspended, this move and discussions around future tariffs have already had a negative impact on the tequila industry. Amanda Blue, president of the Tasting Alliance, which runs the San Francisco World Spirits Competition and several other popular spirits competitions, says many tequila producers she interacts with are not happy. 'There's a mass amount of uncertainty and a lot of general resentment towards American leadership,' she says. Tequila and other types of mezcal are the second-best-selling spirit in the U.S. according to the Distilled Spirits Council. The Council's annual report noted that in 2024, tequila and mezcal sales were up 2.9% and totaled $6.7 billion — only vodka sold more. However, since President Donald Trump's tariff proposals gained serious traction, many tequila producers have canceled expansion plans and product launches and are rethinking marketing strategies. Andrew Muhammad, an economics professor at the Institute of Agriculture at the University of Tennessee, believes its possible some tequila producers might focus on distributing their products outside of the U.S. 'Companies need stability in supply chains, and they need stability in trade policy,' he says. 'This type of uncertainty that says at any given moment your product can face not just tariffs, but tariffs out of nowhere at the whim of leadership, it makes you say, 'Well, the European market is stable, and maybe their customers will be willing to pay this extra price for transport.' Near Puerto Vallarta, Jalisco, Mexico —- Wall of different tequila bottles at Mister Tequila tasting gallery —- Image by © Holger Leue/Corbis 'If tariffs are imposed immediately, we'll likely see a price reaction on the shelves. We could be talking about increases of up to 10 percent for tequila in an extreme case,' Laura Noguera a tequila expert and judge who lives in Mexico City. She adds, consumers in the U.S. may also have fewer tequila and mezcal varieties to choose from. 'Tariffs could affect the quantity and competitiveness of tequila exported to the United States, the main market for this spirit, and many brands would be affected, especially artisanal and low-production tequilas.' Talk of more significant U.S. tariffs is not just disrupting tequila. Blue has heard from global spirits producer who have now decided to skip attempting distribution to the U.S. 'They are trying to refocus their efforts on other countries where it's easier to deal with the distribution system and not as expensive,' she says. Tequila producers might employ a similar strategy long-term, but it's a less palatable move for them in the interim. 'There's not a real appetite yet for tequila in Europe,' Blue says. 'America really is the market that they need to break into, so they're really stuck in a hard place.' Sales of tequila at bars, restaurants and liquor stores could be impacted by proposed tariffs on the spirit. Consumers and producers in Mexico are not the only ones who will be impacted. Based on a 25% tariff rate that Trump initially proposed, Muhammad estimates that tequila importers will lose $800 million in trade. This number doesn't even take into account potential losses faced by middleman distributors, bars and restaurants. 'So there's a lot of economic value-added activity that we will also lose that's not captured in just the trade loss,' Muhammed says. The Trump administration has claimed the tariffs will generate revenue for the U.S. government, but Muhammed's research suggests these gains will not outweigh the costs to businesses and consumers in general. Tequila is a particularly unusual item to receive significant tariffs because it cannot be produced in the U.S. and can only be made in select regions of Mexico. 'The whole point of tariffs is to encourage domestic production,' Muhammed says. 'One of the things I think we often lose sight of is imports are a function of our consumption exceeding what we're able to produce, as well as a function of our taste exceeding what we're able to produce.'
