Park Street Insider Podcast

Essential Talks - Carlos Ochoa on the Economics of Mezcal Production

June 15, 2023 Park Street Companies Season 4 Episode 12
Park Street Insider Podcast
Essential Talks - Carlos Ochoa on the Economics of Mezcal Production
Show Notes

The popularity boom of agave spirits over the past decade needs no introduction. The category saw a volume increase of 13% between 2021 and 2022 alone, according to IWSR, and is poised to take an ever-increasing share of the total spirits market.

In the latest Essential Talks episode from the Park Street Insider Podcast, you'll hear from Carlos Ochoa, the COO of Mezcal El Silencio. In this talk, Ochoa will give listeners insight into what it's like to produce an agave spirit in Mexico with a window into the brand's production process. 

 He offers brand owners an understanding of how bottles are produced and eventually make their way to a point of sale. He also offers a cost-of-goods breakdown for each step, explaining how a bottle arrives at a certain price point. 

Ochoa also makes the case for marketing agave spirits brands in ways that honor Mexican culture. He shares how his brand brought its production capabilities in-house to flip the script on outdated representations of mezcal production. 
Episode Breakdown:

1:15 - The cost of buying finished goods
2:35 - The backward incentives for brokers
4:30 - Making the case for in-house production

Key Quote:

"I'm a true believer that optimization does not mean industrialization. By buying finished goods, you're incentivizing the producers and the broker to squeeze down every penny. What I'm trying to convince people of is to hire those people (producers) directly."

In this episode you'll hear from:

Carlos Ochoa, COO, Mezcal El Silencio

Mentioned in this episode:

El Silencio
El Silencio’s Carlos Ochoa on Mezcal Production Costs & Innovation

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