Liquor store chain Licor Zone is to acquire several Mexican tequila distilleries in a bid to become heavy weight in the tequila business.
The move comes as several small and medium-sized distilleries may cease their operations or may forcefully sell their facilities between 2015 and 2018 due to increasing production cost.
Licor Zone general manager Alfredo Zapata said: "I am proud to be part of Licor Zone expansion.
"The idea of regrouping several small and medium distilleries under one roof is brilliant, this will allow Licor Zone to become a heavy weight in the tequila business by reducing cost and increasing profitability."
The anticipated shortage of agave, the raw material used to manufacture tequila, in the near future may result in the increase of its price by over 100% by 2018.
However, large distilleries could capitalize on this situation and expand their manufacturing capabilities by leasing, renting or buying these facilities.
The larger distilleries may also sign third-party production agreement to produce their brands in these facilities.
Over the past five years, Mexico has increased its exports at a rate of 4.5% in order to cater to the increasing global demand for tequila.
The demand for the drink is expected to increase in China, which lifted the ban on Mexican 100% tequila in 2013.
Until 2012, the US was the largest importer of tequila with close to 75% of the export market for Mexico.
