Your Margarita Is About to Cost HOW MUCH?

Plus: The Art & Soul of A Cocktail

Author

Luiz Fernandes
February 07, 2025 • Estimated Reading Time: 11 minutes

Good Morning! Another week gone by that has felt like a year. If you work in the restaurant/bar industry, I have no idea how you are handling all of this but I am here to raise a glass to you. Things are crazy out there.

On the personal front, things have been tough but trying to focus on the important elements in my life, like my family and my business. Focusing on bettering my restaurant and making sure my employees are well. Speaking of my restaurant, we are hosting another Private Dinner on Feb 26th, which you can check out the details here.

This week on YouTube I released this video from my trip to visit the Amazzoni Distillery in Rio de Janeiro, Brasil last year. It was so special to get to go back to my home country and visit one of the most magical cities in the world. I love Rio and everyone should experience it at least once.

Anyway! On to this weeks newsletter!

Panic at the Bar: Inside the Trade War That's About to Triple Your Drink Prices

How Politics Is Driving Up Your Drink Prices

Remember when we talked about potential tariffs a few weeks ago? Well, they've arrived, and they're about to reshape the spirits landscape in ways that would make even the most seasoned industry veteran reach for a stiff drink. Let's dive into what's happening and why it matters to everyone who loves a well-crafted cocktail.

The Opening Salvo

On February 1st, the US kicked things off with a 25% tariff on Canadian and Mexican goods (plus 10% on Chinese imports), citing border security. Canada and Mexico didn't take this lying down—they fired back with their own 25% tariffs, taking direct aim at American spirits. It's like watching a bar argument escalate, except instead of flying bottles, we're dealing with flying tariffs.

The Great Northern Boycott

Things got particularly interesting in Canada, where several provinces decided to take matters into their own hands. British Columbia and Ontario—whose liquor purchases could probably float a small nation's economy—announced they're pulling American spirits from their government-run stores. When Premier David Eby and Doug Ford agree on something, you know it's serious. Nova Scotia, Newfoundland, and Quebec quickly joined the party (or perhaps anti-party in this case).

Tequila's Turning Point

Now for the part that might hurt the most: the future of agave spirits in American bars. The situation isn't great:

  • Your favorite cocktails are about to get more expensive. Gabe Sanchez at Dallas's Black Swan Saloon puts it plainly: margarita prices could jump from $15 to $20 or more. At those prices, many bars will have to rethink their entire spirits program.

  • Those small-batch, artisanal mezcals that make spirits enthusiasts' eyes light up? They might become as rare as an empty bar on New Year's Eve. Many small producers simply won't be able to justify the cost of entering the US market.

  • Even the industry giants aren't immune. When companies like Diageo (think Don Julio and Casamigos) start feeling the squeeze, you know we're in uncharted waters.

The Human Element

This isn't just about numbers on a spreadsheet—it's about people. The Wine and Spirit Wholesalers of America estimates we could lose 14,000 American jobs and $2.5 billion in economic output. Behind every statistic is someone who helps create the drinks and experiences we all enjoy.

A Brief Respite

There's a glimmer of hope: on February 3rd, everyone agreed to a 30-day pause to work things out. It's not a solution, but it's a chance for cooler heads to prevail.

The Long View

We've weathered tariff storms before—the 2018-2023 period wasn't exactly smooth sailing for American whiskey. But this time feels different. With inflation already taking its toll and supply chains still finding their footing post-pandemic, timing couldn't be more challenging. Add to this the announced mass deportation plans, and our industry is facing a perfect storm. Restaurants and bars are already struggling to maintain adequate staffing, and the potential loss of experienced kitchen staff, servers, and support personnel could leave many establishments seriously understaffed.

The numbers tell quite a story: in 2023, the US-Canada spirits trade was bustling, with $255 million in US exports to Canada and $537 million coming back our way. That's a lot of bottles crossing borders, and a lot of relationships and businesses built on this exchange.

Looking Ahead

The next month will be crucial. While the politicians negotiate, bars and distilleries are already planning for various scenarios. In places like North Texas, where agave spirits make up nearly a third of cocktail menus, the anxiety is palpable.

We'll keep tracking these developments and what they mean for our industry. After all, good spirits and good bars are about more than just business—they're about bringing people together, sharing stories, and creating memorable experiences. That's worth protecting.

👉 For more on how tariffs could impact your favorite agave spirits & spirits as a whole, check out the full article from Reason here and the Break down from Seven Fifty Daily here

Share the Spirit, Get Rewarded (Like, Really Good Rewards) 🥃

You know that feeling when you taste something incredible and immediately want to tell everyone about it? That's exactly how we feel about our community. So we're launching something special...

Introducing our Share the Spirit program! Every time you spread the word about In Good Spirits, you unlock increasingly epic rewards:

Share with 1 friend: Snag an exclusive sticker, designed by yours truly.
10 shares: Rock our butter-soft IGS t-shirt
15 shares: Toast with a crystal tasting glass, engraved with our logo
20 shares: Unbox our legendary Mystery Box (trust us, it's good)
25 shares: Get Cozy in a IGS Hoodie.
30 Shares: Dinner for you and a guest at my restaurant, Ember & Alma ($150 value)

Why? Because this newsletter isn't just about drinks – it's about the people who love them. And the more passionate spirits enthusiasts we bring together, the better our community becomes.

Ready to start sharing? Just use your unique referral link below!

Cheers to spreading good spirits! 

P.S. Curious about what's in that Mystery Box? Let's just say I've been saving some special items for this... 😉

The Soul of a Cocktail: The Fascinating Truth Behind What Makes Your Drink Special

This week, I want to take a step back and explore something fundamental that often gets overlooked in our community's endless pursuit of the next great drink: What exactly makes a cocktail a cocktail, and why should we care?

In my years behind the bar and connecting with drink makers worldwide, I've noticed that we sometimes get so caught up in the latest trends that we forget to appreciate the beautiful simplicity and rich history that makes cocktail culture so special.

What Makes a Cocktail?

While the Oxford dictionary defines a cocktail as "an alcoholic drink made up of spirits and other ingredients such as fruit juices or cream," this clinical definition barely scratches the surface. Anyone can throw ingredients together in a glass, but understanding the method behind the magic is what elevates a drink from merely palatable to truly exceptional.

A Journey Through Time

The story of cocktails is, at its heart, a story of human ingenuity. Centuries ago, our ancestors faced a challenge: early spirits were harsh, unrefined versions of what we enjoy today. Whether it was raw rum or early cachaça, these spirits needed something to make them more palatable.

Enter the punch – the grandfather of all cocktails. The word "punch" comes from the Hindi word for "five," referring to the five essential components that would become the blueprint for cocktail creation:

  • Spirit (the base)

  • Sweetener (for balance)

  • Citrus (for brightness)

  • Spice (for complexity)

  • Lengthener (water or tea, for dilution)

This five-ingredient formula became the template that would influence centuries of cocktail development, leading to the sophisticated drinks we enjoy today.

Why Cocktails Matter

As someone deeply embedded in this community, I often draw parallels between cocktail-making and other culinary arts. Think of the difference between store-bought cookies and your grandmother's fresh-baked chocolate chip cookies. Sure, both satisfy a craving, but one carries something extra – love, craft, and tradition.

The same applies to cocktails. Yes, you can grab a pre-mixed margarita from the store, but when you taste one crafted with fresh lime juice, quality tequila, and proper technique, you're experiencing something transcendent. It's not just about getting tipsy (though let's be honest, that's part of the fun) – it's about experiencing flavors and traditions that connect us to centuries of human culture and creativity.

Every time we shake a daiquiri or stir an old fashioned, we're participating in a conversation that spans generations. We're connecting with the bartenders, distillers, and drink enthusiasts who came before us, all while adding our own chapter to the story.

Looking Forward

Whether you're a professional bartender or someone who enjoys making drinks at home, understanding these basics helps us all appreciate and contribute to this incredible culture we share.

Further Recommended Reading for the Curious:

Garnish of the Week

The Best Video we saw this week

My Friend Jordan, or you may know him as Highproof Preacher, created a really inventive old fashioned based on the drink of 2024, the Batanga, and he made a Batanga Old Fashioned. 

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