Tesla Inc. co-founder Elon Musk clashes with the Mexican tequila industry.
Elon Musk has had crazy idea, no doubt, but now he plans on disrupting the multibillion-dollar tequila industry.
The chief executive of Tesla and one of the world’s richest people tweeted on October 12th: “Teslaquila coming soon”, accompanying the text with a “visual approximation” of a red and white label with the Tesla logo and a caption that stated “100 percent Puro de Agave.” It was obvious: Musk was about to launch a tequila brand.
But Mexico’s Tequila Regulatory Council (CRT) slowed Musk down, stating that the “name ‘Teslaquila’ evokes the word Tequila … (and) Tequila is a protected word.”
According to Reuters, the CRT keeps tabs on producers to assure they adhere to strict denomination of origin rules, which dictate the spirit must be made in the Mexican states of Guanajuato, Jalisco, Michoacan, Nayarit or Tamaulipas, among other requirements.
“If it wants to make Teslaquila viable as a tequila it would have to associate itself with an authorized tequila producer, comply with certain standards and request authorization from Mexico’s Industrial Property Institute,” said the CRT in a statement.
“Otherwise it would be making unauthorized use of the denomination of origin for tequila,” it said, adding that the proposed name “Teslaquila” could make consumers confuse the drink with tequila.
The website of the U.S. Patent and Trademark Office says Tesla filed an application to trademark “Teslaquila” as a “distilled agave liquor” and “distilled blue agave liquor.” Similar applications have been filed in Mexico, the European Union and Jamaica.
Tequila, moving quickly
As tequila moves into the ranks of top-shelf liquors and sheds its image as a fiery booze drunk by desperadoes and frat boys, the spirit has been closing alliances with high-end celebrities.
In late June of 2017, Casamigos, a tequila company co-founded by George Clooney, was sold to UK drinks firm Diageo for up to $1bn (£790m).
Among other cases, Mexico’s Beckmann family launched an initial public offering of Jose Cuervo in 2017, raising more than $900 million.
In January of this year, Bacardi Ltd’s launched a deal to buy fine tequila maker Patron Spirits International for $5.1 billion.
Visual approximation pic.twitter.com/sMn3Pv476Y
— Elon Musk (@elonmusk) October 12, 2018