January 20, 2026: Mercosur-EU agreement and (many) other news
Brazil, rum news, additives in spirits, 100% agave, whisky in Mexico, Flor the Caña and Fratelli Branca, Paul Hletko, distillery news, Diageo’s baijiu and more…
The Spirits Post is an international press review about the spirits industry brought to you by Eugenia Torelli, an Italian spirits journalist and judge. If this newsletter was forwarded to you by a friend, you can subscribe here to receive it directly in your inbox:
Hello everyone!
I wasn’t able to publish more than one update last week, which means you have a bumper edition to get through today. Our round-up covers everything from international trade deals to regional product news and several key distillery updates.
Spoiler for my Italian readers: scroll down for some important news regarding new distribution agreements in your market.
Brazil
Cachaça, coffee, and wine gain protection under Mercosur-EU agreement
The free trade agreement between Mercosur and the European Union, finalised this Saturday, will significantly bolster the protection of Brazilian Geographical Indications (GIs) within the EU, with cachaça being a primary beneficiary.
Under the terms of the deal, several names currently used in Brazil—such as fontina, grana, and gruyère—will have to be phased out or changed to respect the EU’s established GI protections.
News by Times Brazil (no author mentioned):
Cachaça, cafés e vinhos vão ser protegidos contra imitação após acordo Mercosul-UE; veja lista
Rum
French government withdraws proposed surtax on overseas rums
Following an intense lobbying effort led by Guadeloupean Senator Victorin Lurel, the French government has withdrawn an amendment that sought to extend a rum surtax across all overseas territories.
News by Yasmina Yacou in La 1ere France Info:
Additives
French national press writes about spirits additives
Le Figaro has published a feature exploring the use of sugar and other additives in the spirits industry. While the tone is more explanatory than accusatory, it brings a traditionally industry subject into the public eye.
You can read the articles by Fabien Humbert in Le Figaro here:
«L’édulcoration est très fréquente» : le tabou du sucre ajouté dans les spiritueux
Hawaiian rum maker calls for transparency in additive-free open letter
Steve Jefferson, founder and CEO of the Hawaii-based Kuleana Rum Works, has published an “Open Letter on Additive-Free Rum.” In it, he calls for greater honesty regarding production methods as consumers increasingly scrutinise the contents of their glasses.
News by Businesswire here:
As Additive-Free Spirits Surge, Rum Becomes the Next Category Under the Microscope
The full text of the letter is available on Kuleana Rum Works official website:
Mexico
818 Tequila faces class action lawsuit over 100% agave claims
The trend of “100% agave” lawsuits continues, and this time 818 Tequila is in the spotlight. The company is challenging a class action lawsuit filed against its US parent company, which claims independent laboratory testing contradicts the 100% agave label.
As many of you will recall, we have been tracking this theme for months, notably with the Diageo lawsuits. These claims are becoming increasingly frequent as consumer preference shifts decisively toward pure agave spirits.
Nicola Carruthers is reporting the news in The Spirits Business:
As many of you remember, we have been covering this topic for months, starting with Diageo lawsuits (here is a recap).
These claims look more and more frequent, as consumer preferences appear to be shifting towards agave-only spirits.
Mexican whisky market projected to reach us$1.47 billion by 2034
A study by the IMARC Group suggests the Mexican market for whisky could grow at a compound annual rate (CAGR) of 5.52% between 2026 and 2034. This would see the market rise from 2025’s US$905.2 million to US$1.47 billion.
While these statistics are compelling, I always recommend viewing them as projections rather than certainties—economists, after all, haven’t found a crystal ball just yet.
You can find more details in Miona Madsen’s article in The Spirits Business:
For those of you who are interested, IMARC Group is a market research agency. You can find the original document online, and the complete version is for sale:
Italy
Flor de Caña appoints Fratelli Branca as new distributor in Italy
Milan-based Fratelli Branca Distillerie has been named the new Italian distributor for Flor de Caña, following a new agreement signed with the Compañía Licorera de Nicaragua.
News by Henry Mathieu in Global Drinks Intel:
Flor de Caña appoints Fratelli Branca as Italian distributor
UK
Scottish distillery tests aluminium bottles for whisky
The Lowland-based Stirling Distillery is testing aluminium bottles for its small-batch whiskies. The initiative aims to improve sustainability and significantly reduce carbon emissions associated with glass production and transport.
News by Severin Carrell in The Guardian:
Green whisky? Scottish distillery tests eco-friendly aluminium bottles
Ireland
Teeling Whiskey profits dive 90% in difficult 2025
Teeling Whiskey, the Bacardi-owned Irish firm, saw pretax profits plummet by 90% in 2025. Turnover fell by 14% to €23.7 million, with whiskey sales specifically dropping 15%. It marks a particularly challenging year for one of the industry’s modern pioneers.
You can read more details in Hugh Dooley’s article in The Irish Times:
Slump in profit at Bacardi-controlled Teeling Whiskey last year
Fortunes remain bright for West Cork Distillers
In contrast, West Cork Distillers reported a robust 2024, with sales exceeding €77.3m and profits reaching €3.4m. The Skibbereen-based group expects further expansion in 2026. Interestingly, they appear less affected by US tariffs as their branded whiskeys do not focus heavily on the American market.
A note on the data: I noticed the original interview in The Independent cites 2024 figures. It seems my colleagues there didn’t ask what happened in 2025 — a curious omission given the current climate.
You can find the article by Sean Pollock in The Independent (subscription required):
West Cork Distillers toasts €3.4m profit despite whiskey industry challenges
...or you can read it in Drinks Industry Ireland (free access):
€3.4m profit for West Cork Distillers with plans for more growth in 2026
USA
Paul Hletko announces departure from FEW Spirits
Paul Hletko, the founder of Heaven Hill-owned FEW Spirits, has left the company after more than a decade. Hletko shared the news on LinkedIn, expressing pride in the brand’s journey from a “wild idea” to an internationally recognised name.
You can read it here:
Investor group makes bid to rescue Uncle Nearest from debt
An investment group known as NexGen2780 has offered to buy out the assets and settle the $108 million debt that the whiskey brand Uncle Nearest owes to Kentucky lender Farm Credit. A letter of intent has been filed in federal court by the group’s representative, Walter Miles, as part of the brand’s ongoing receivership proceedings.
News by Janet Patton in the Lexington Herald Leader:
Investor group offers to buy out troubled whiskey’s $108m Kentucky loan
A.M. Scott Distillery files for bankruptcy
Ohio-based A.M. Scott Distillery has filed for bankruptcy, owing a debt of US$3.35 million. The distillery had been founded in 2022 to produce whiskey, rum, vodka and gin.
You can read more details in Nicola Carruthers’s article for The Spirits Business :
Constellation Brands’ wine and spirits revenue takes a hit after divestments
Constellation Brands saw wine and spirits sales drop by 51% to US$213.1 million in the final quarter of 2025. However, this steep decline is primarily due to the offloading of major brands, including Svedka Vodka and Copper & Kings.
News by Lauren Bowes in The Spirits Business :
China
Diageo may be selling its baijiu business
According to Bloomberg, Diageo is considering selling its 63% stake in Shuijingfang, its premium baijiu producer. The multinational has not yet commented on the speculation.
You can find Ruth David, Dong Cao, Baijiu Kalesh and Vinicy Chan’s article in Bloomberg here (subscription required):
Diageo Said to Weigh Options for China Assets Including Sale
…or you can read it in The Spirits Business by Rupert Hohwieler
Something to read
Traveling to the “Brooklyn of Dublin”
The Liberties, a historic Dublin neighbourhood dating back to the 12th century, is experiencing a renaissance earning it the “Brooklyn of Dublin” moniker. The area includes contemporary whiskey distilleries, artist studios, Michelin-recognized restaurants, cultural hubs, and historic attractions like St. Patrick’s Cathedral and The Brazen Head pub (Ireland’s oldest from 1198).
You can read Jillian Dara’s article in the National Geographic here:
I hope you enjoyed this extended round-up.
Thank you for reading The Spirits Post!