Supply Chain Research

The tax reform currently being reviewed by the U.S. Congress includes excise reductions on alcoholic drinks of 11% on beer and up to 80% on small production spirits. The move may encourage investment in the industry, but could simply end up boosting demand via lower prices, and may also help imported supplies as well as domestic. Growth in U.S. liquor imports has slowed recently, with a 2% growth in the past year vs. 4% annually in the past three. That’s been due to a drop in vodka exports of 10% being offset by a 12% rise in tequila shipments. Mexican exports of tequila in total have no...