Connect with us
https://tickernews.co/wp-content/uploads/2023/10/AmEx-Thought-Leaders.jpg

Money

The Aussie company taking on the soaring tequila market

Published

on

The pandemic has seen us all drink a lot more tequila. In fact the market has increased by 30 per cent and is rapidly growing. Now one Aussie company is expanding into Queensland, to take on the soaring tequila market.

In the dry fields of tropical North Queensland, inland from the Whitsundays and the Great Barrier Reef – a massive project is underway to transform Australia’s spirits industry.

Seb Reaburn is the Master Distiller with Top Shelf International.

“The agave a project is one great big experiment right now to the level that no one has grown it in this part of dry tropical Queensland and no one has, other than a few experiments, no one has distilled it,” Seb says.

Established in 2014, Top Shelf International (TSI) is an ASX-listed Australian spirits company with global ambitions. it sees the soaring tequila market as a leap forward.

Their current brands include NED Australian Whisky and Grainshaker Hand Made Australian Vodka.

Seb Reaburn is the Master Distiller with Top Shelf International.

Proserpine in the heart of North Queensland

The project is happening at Prosepine, near the famous Airlie Beach. Known as a haven for backpackers. For over a century Australians have produced world class wines – but the spirits industry has recently had a massive transformation, mostly thanks to the pandemic.

Drew Fairchild is the Founder and Managing Director of Top Shelf International.

“I think Covid has accelerated a lot of trends at home cocktail culture people preparing to mix things. The younger generation have a global mindset and are wanting to experiment,” Drew says.

The management and distillers of the Top Shelf International Agave farm

That experiment brought them to an abandoned eggplant farm, which will soon be home to a million agave plants as far as the eye can see. They plan to harvest 250,000 plants a year.

“I’ve spent my career in the liquor industry and through there into distilling but there were no plants. Nothing was growing that you could distil so it’s a privilege,” Seb says.

But you can’t actually call it tequila

“A lot of people come to tequila as a challenge shot. They sort of go and have one sort of attitude and culture which is really not what we are trying to do we are trying to make a top shelf.

“If you look at the wine industry, there’s a lot of wine that is a really reasonably priced. And there’s a lot of exceptional Australian wine which is an expression of place,” Seb says.

The agave plant in north Queensland

And that has led to another experiment – what to call this agave spirit. A problem Drew Fairchild is trying to fix.

“The brand strategy has to navigate that. But we think it presents an opportunity to create a category of one,” Drew says.

“When you look at the spirits industry in Australia it’s an $11 billion industry and 60% of that is dark spirit’s scotch and bourbon. So clearly it’s started around whiskey and talking to that market but also a scale.

Vodka is the single largest outside of dark spirits. So again, the opportunity to play in that space within Australian vodka. When we looked at tequila, it was the fastest growing spirit in the world,” Drew says.

Plans for the agave bar and customer facing building.

The company is working with local tourism authorities in tropical North Queensland to create a great destination for tourists, especially from the southern states.

Top Shelf has plans to build a massive distillery and agave spirits bar on the property too.

Top Shelf International highlights

Top Shelf Intentional highlights

But in the end, it all comes down to taste.

Drew says it’s not about replicating the taste of Mexican tequila.

“We’re In the process of finalising brand. And Australian agave spirit, in many ways, when you’re talking about introducing brands competing at scale against internationals, which led the way in terms of what does an Australian whiskey taste like? We are not seeking to copy scotch or bourbon.

“We are comfortable in our own skin in terms of defining the taste profile,” Drew says.

Agave plants use the light from the moon to grow overnight

So what’s the best mixing drink to go with Agave spirit? Seb has a rather expensive answer.

“Tequila and orange is probably a little retro nowadays. But when someone else is paying, honestly margaritas topped with champagne can’t be beaten. It’s lovely and extravagant and delicious.”

Ahron Young travelled to North Queensland as a guest of Top Shelf International.

https://www2.asx.com.au/markets/company/tsi

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Money

Wall Street hits record highs on low inflation

Wall Street hits record highs on cool inflation and strong earnings ahead of key Federal Reserve interest rate decision

Published

on

Wall Street hits record highs on cool inflation and strong earnings ahead of key Federal Reserve interest rate decision

video
play-sharp-fill
In Short:
– U.S. stocks rose to record highs on Friday due to lower inflation and strong corporate earnings.
– Key earnings reports from major companies are expected next week, influencing market trends.
U.S. stocks rose to record highs on Friday due to lower-than-expected inflation data and positive corporate earnings.The S&P 500 and Nasdaq achieved their largest weekly gains since August. The Dow saw its biggest jump from Friday to Friday since June.

Banner

The Labor Department reported that the Consumer Price Index was slightly cooler than analysts’ predictions, easing concerns about inflation impacts from tariffs. This development suggests a likely interest rate cut by the Federal Reserve at its upcoming meeting.

Ryan Detrick from Carson Group noted the positive inflation news may facilitate forthcoming Fed rate cuts. Despite the ongoing government shutdown affecting data releases, this CPI report provided much-needed clarity.

Earnings reports are continuing, with 143 S&P 500 companies having reported results. Growth expectations for third-quarter earnings have risen to 10.4%. Detrick indicated a strong opening to the earnings season with a significant percentage of companies exceeding expectations.

This coming week, key earnings will be reported from Meta Platforms, Microsoft, Alphabet, Amazon, and Apple, alongside industrial companies like Caterpillar and Boeing.

The Dow rose 472.51 points to 47,207.12. The S&P 500 increased by 53.25 points to 6,791.69, while the Nasdaq gained 263.07 points, reaching 23,204.87.

Alphabet gained 2.7% following a deal expansion with Anthropic. Coinbase saw a 9.8% increase from a JPMorgan upgrade. In contrast, Deckers Outdoor’s shares fell 15.2% after lowering sales forecasts.

Market Trends

Advancing stocks on the NYSE outnumbered decliners by 2.18 to 1. The S&P 500 had 34 new highs, with the Nasdaq recording 124.

Trading volume was 19.04 billion shares, lower than the average of the past 20 days.


Download the Ticker app

Continue Reading

Money

US stocks face tests from Tesla, Netflix earnings

US markets brace for Tesla and Netflix earnings amid rising volatility and delayed inflation data

Published

on

US markets brace for Tesla and Netflix earnings amid rising volatility and delayed inflation data

video
play-sharp-fill
In Short:
– Earnings reports from Tesla and Netflix might affect U.S. stock performance next week amid high inflation concerns.
– Increased market volatility arises from U.S.-China trade tensions and fewer S&P 500 stocks in an uptrend.
This coming week, earnings reports from companies including Tesla and Netflix are anticipated to impact U.S. stock performance.
Investors are also awaiting delayed U.S. inflation data, which could test market stability as it remains near record highs.Recent trading activity has shown increased volatility, influenced by ongoing U.S.-China trade tensions and concerns regarding regional bank credit risks. The CBOE volatility index has seen a rise, indicating increased market uncertainty.

Banner

The S&P 500 entered its fourth year of growth amidst these fluctuations, having previously experienced a period of calm. Experts suggest market risks are intensifying as valuations reach peak levels.

Market Volatility

Concerns regarding U.S.-China trade relations escalated last week when the U.S. threatened to raise tariffs by November 1 over China’s rare-earth export policies. President Donald Trump is scheduled to meet with President Xi Jinping in two weeks to discuss these issues.

Despite these challenges, major stock indexes gained ground over the week, with the S&P 500 up 13.3% year-to-date. However, a noticeable decline in the number of S&P 500 stocks in an uptrend raises caution among investors about underlying market weaknesses.

The upcoming third-quarter earnings will be closely monitored, especially as the government shutdown halts economic data releases. Companies like Procter & Gamble, Coca-Cola, RTX, and IBM are due to report. The delayed U.S. consumer price index is also expected to provide crucial insights ahead of the Federal Reserve’s monetary policy meeting on October 28-29.


Download the Ticker app

Continue Reading

Money

Australia’s unemployment rate rises to 4.5 per cent

Australia’s unemployment rate rises to 4.5 per cent in September, prompting calls for potential Reserve Bank interest rate cut

Published

on

Australia’s unemployment rate rises to 4.5 per cent in September, prompting calls for potential Reserve Bank interest rate cut

video
play-sharp-fill
In Short:
– Australia’s unemployment rate rose to 4.5% in September, the highest since November 2021.
– Economists note a cooling labour market, with fewer job ads and increased participation rate amid rising living costs.
Australia’s unemployment rate increased to 4.5 per cent in September, up from 4.3 per cent in August.It marks the highest seasonally adjusted unemployment rate since November 2021.

Economists suggest that the Reserve Bank should consider another interest rate cut next month. BetaShares chief economist David Bassanese noted a slowdown in employment demand as the labour market struggles to accommodate job seekers.

The number of officially unemployed rose by 33,900 in September, while the employment count increased by 14,900. The labour force expanded by 48,800 people, resulting in a participation rate rise of 0.1 percentage points to 67 per cent, returning to July levels.

In trend terms, the unemployment rate remained steady at 4.3 per cent.

Banner

Labour Market

BDO chief economist Anders Magnusson stated that while the unemployment rate has increased, the labour market is cooling, not collapsing.

He pointed out that the 14,900 jobs added in September were slightly below the average for the past year.

A growing participation rate indicates that rising living costs are prompting more individuals to seek employment. Magnusson said the release confirms a gradual cooling of the labour market that keeps the Reserve Bank on track without necessitating immediate action.

He added that hiring activity is slowing, signalled by a 3.3 per cent drop in job advertisements in September, the largest monthly decrease since February 2024.

Despite this, he does not foresee a rate cut in November.


Download the Ticker app

Continue Reading

Trending Now