Hands off our tequila, Mexican tipplers say

MEXICO CITY - Mexico's national pride, bruised time and again by a steady invasion of US investors and culture, took another blow on Monday when one of its finest tequila makers was swallowed up by an American company.

The US$876 million ($1.3 billion) buyout of Casa Herradura by Brown-Forman Corp left a bitter taste with some regulars at cantinas in Mexico City.

"Nothing is sacred. Look, now Herradura tequila has gone," said Heriberto Zuniga, slugging back an aged Herradura tequila in Ardalio, a classic no-frills cantina in Mexico City's Escandon neighbourhood.

The 26-year-old plumber said he'd boycott the drink if only he had the willpower. "I'd like to say this is my last Herradura, but it won't be, I like it too much."

Guillermo Martinez, Ardalio's head waiter, said he thought other drinkers would switch loyalties, however.

"People are going to be annoyed with the news," he said. "Just wait and see, there will be a drop in sales of this brand."

Casa Herradura is 136 years old, family owned and makes El Jimador and Herradura, ranked 3rd and 10th among the world's top tequila brands.

Made from distilled agave cactus plants, tequila is Mexico's national drink. But in recent years, a shortage of plants has sent prices soaring.

One shot of Herradura sells at 60 pesos ($8.70) at the Ardalio cantina, almost double the price of all rums, less than all vodkas and at the same price as whiskies, including Brown-Forman's Jack Daniel's brand.

"Tequila? That's too expensive for me," said Arturo Solis, a rum-drinking history teacher at the more elegant La Colonial cantina nearby.

Mexico has long had a love-hate relationship with the United States. While immigration and free trade have pulled the two neighbors closer together, many here still resent the US victory in the mid-19th century war that took away half of Mexico's territory.

In recent years, major US companies have led a commercial invasion. Wal-Mart Inc's local unit dominates Mexico's retail sector, Citigroup bought major local bank Banamex for US$12.5 billion and US fast food restaurants are hugely popular, upsetting some traditionalists.

Louisville, Kentucky-based Brown-Forman's most famous drinks are Jack Daniel's and Southern Comfort but it also makes wines and already owns two smaller premium tequilas, Pepe Lopez and Don Eduardo.

While some tequila lovers were upset by the new acquisition, others said the knee-jerk reaction would quickly pass and that prices of the agave drink might come down in the long run.

"It doesn't bother me. The Americans generally do business better and that could lead to lower tequila prices," said Juan Camacho, a newspaper kiosk owner. "How many tequila drinkers are going to complain?"

- REUTERS