Tequila sparks a trade war against Heineken over Desperados beer

The Regulatory Council for Tequila (CRT), which brings together the 163 major producers of the Mexican drink, wants to take advantage of the fact that the negotiation of the free trade agreement between the European Union and Mexico is facing its final stretch (now it must be ratified by all the member countries of the EU and the Mexican Congress and Senate for its final approval in late 2021 or early 2022) to redouble its pressure on Brussels and shield tequila against uses that it considers to "adulterate" a trademark protected by Europe.

In the spotlight is Heineken, with which it maintains a legal and commercial battle even before in 2019 tequila became a protected geographical indication in Europe, being the first product in Mexico to access the maximum protection of its brand and its manufacturing process.

Two years earlier, the Tequila Regulatory Council already filed lawsuits in the courts in Amsterdam (Holland) and Nanterre (France) with the same argument that it uses now: that Heineken was misusing and unauthorized the word tequila, “adulterating the Mexican drink par excellence to turn it into an essence in their Desperados beer ”.

"He does not use tequila in the content of the drink, but he does use the label"

This beer, whose brand belongs to Heineken, is manufactured by the French group Brasserie Fischer and is marketed as “beer flavored with tequila”.

The French courts have ruled in favor of the tequila producers, while in the case of the Netherlands, an unfavorable ruling against the CRT has been appealed to a higher court.

"If it is unfavorable again, we will go to the Superior Court of Justice of the European Union," says

Fernando Cano, representative for Europe of the CRT

.

In parallel with the judicial process and once the shielding of the brand with the geographical indication had been achieved since 2019, the CRT chose to deny the production company that supplies tequila to a Heineken subsidiary to issue the certificates of authenticity necessary for the export of the Mexican drink.

Faced with this blockade, Heineken sought the support of the European Brewers Association and reported Mexico to the European Commission for "technical obstacles to trade."

For its part, the CRT presented to the community authorities a letter of support from 40 spirits associations, including those that make cognac or Scotch whiskey, defending the intellectual property of the registered trademarks.

Heineken's complaint, registered on August 13, 2020, triggered an investigation that has not yet concluded, and that will be resolved with complete certainty on March 13.

“What we cannot allow is that the work of 163 producers and 20,000 farmers is harmed by the bad practices of a multinational that is not complying with the spirit of the norm, which requires that at least 25% of the drink contains tequila .

Heineken created a beer brand for young people with the aim of making them think that it has tequila and that they could get drunk sooner and it is not like that ”, he emphasizes.

Cano recounts the beer giant's modus operandi.

“He imports tequila, empties it into tanks and transforms a spirit drink into an essence.

It does not use tequila in the content of the drink, but it does use the label.

We are not going to give in to our demands ”.

18 'armored' Mexican products in the European Union

Trade.

The main element of negotiation before the European Commission.

it will be the ratification of the free trade agreement between the EU and Mexico.

In the text, Mexico recognizes 300 European denominations of origin and the EU recognizes 18 Mexican denominations, including tequila.

But there will be no agreement if the conflict with Heineken is not resolved first.

The interest of the Mexican government also lies in the important weight that Spain plays, since it is the second largest buyer of tequila in the world, only behind the United States.

Resolution.

The Tequila Regulatory Council seeks that Desperados beer does not carry any reference to tequila on the label or in advertising and if it does, that 25% of the drink is tequila.