Image credits: Owen Prior
Weekly Roundups

Tequila Name Must Be Protected Better

By Jan Hogewoning | Fri, 11/06/2020 - 12:06

While the elections may have considerable impact on bilateral dynamics between the Mexico and the US, there was another significant event this week that set a new precedent on how Mexico could strengthen its bilateral relationships. On Tuesday, the Ministers of Agriculture of the Netherlands and Mexico opened the first virtual horticulture trade mission to Mexico. Its goal is to strengthen ties in areas of technology and sustainable innovation between the two countries.

In an interview with Heraldo de Mexico, the director of the Tequila Regulatory Council and the president of the National Chamber of Industry reiterated their views on tequila as a national heritage product and said its name must be protected. This comes after a Dutch company recently launched a beverage with a label that read “flavored with tequila.” Both parties have started a legal procedure to adress this product.  According to Mexican law, products with the name tequila on their label must contain at least 25 percent of the spirit.


Interested in more? Here are the week’s biggest agribusiness & food headlines!


  • The Federal Consumer Protection Office (PROFECO) published a study on different American-style cheese brands which it says do not meet the new labeling standards that went into effect on Oct. 1. This comes only a few weeks after the government suspended the sale of several dairy products temporarily, citing labeling issues and ‘deceiving’ information.


  • On Oct. 28, Mariano Salceda Servín de la Mora, Vice President of New Business at Danone de México, was appointed the new President of the National Chamber of Dairy Companies (CANILEC). This is an autonomous public interest body that consults with the Mexican government. Salceda will be accompanied by representatives from a wide range of companies in the industry: Lactalis, Alpura, Qualtia, Lechera Alteña, Yakult, Liderlac, Sigma, Mead Johnson, Covadonga, Nestlé, Navarro, Lyncott and Mondelez.


  • The pandemic has claimed another victim. On Dec. 4, 2020, food delivery company SinDelantal will close operations in Mexico. "Mexico is living in an environment of intense competition in the food delivery industry, where many brands seek to win the heart and stomach of the Mexican consumer. SinDelantal's partners will focus their resources on those markets where they are in a leadership position," the company said in a statement on Wednesday afternoon.


  • This week, Uber asked the Federal Commission for Economic Competition (COFECE) to approve its acquisition of grocery delivery app Cornershop in Mexico. COFECE has reasoned that the deal could negatively impact competition in the Mexican market. Uber, meanwhile, stated that the delay sends “a negative signal to foreign investment by undermining business confidence and the execution of investment plans.”


  • Minister of Agriculture and Rural Development Víctor Villalobos has announced the launch, starting this month, of financing and credit schemes for  medium to small agricultural producers of basic grains.


  • In another press release, the Instituted Trusts in Relation to Agriculture (FIRA) announced the implementation of a Price Coverage Program. This will provide medium to small producers coverage through third party institutions, allowing them to access hedging markets. This complements the already existent Guaranteed Prices Program operated by SEGALMEX for basic food products, where participants must acquire a risk management instrument.


  • To commemorate the Regional Day of Agricultural Health, representatives of country members of the International Regional Organization for Agricultural Health (OIRSA) held a virtual meeting this week to evaluate the actions that have been taken in the region during the COVID-19 health contingency. The member countries are Mexico, Belize, Guatemala, El Salvador, Honduras, Nicaragua, Costa Rica, Panama and the Dominican Republic.



The data used in this article was sourced from:  
SADER, La Jornada, Mexico Business News, Agronoticias, ArribaElCampo
Photo by:   Owen Prior
Jan Hogewoning Jan Hogewoning Journalist and Industry Analyst