The Challenge
Élevage faced significant challenges entering and capitalizing on Mexico’s $4.4B potential wine market. As distributors and retailers grow increasingly interested in prestigious French producers currently underrepresented in the market, Élevage needed to get their portfolio in front of them, a business opportunity that required deep industry insights and access to key on-premise accounts.
Once in front of potential buyers, Élevage needed to successfully navigate the distinctive market dynamics of Mexico, including the complexities of importing and distribution and local and international regulations.
After completing Maguey Exchange’s SpiritsFlow Analysis, we identified three main roadblocks standing between them and successful entry and expansion across Mexico: market entry strategy, import & logistics management, and sales force structure & support.
The Solution
MGx leveraged its extensive network across Mexico to identify and secure partnerships with bars, restaurants, and other on-premise locations that were seeking the types of high-quality, exclusive French wines Élevage Mexico offers.
MGx facilitated the market entry and expansion process by:
- Developing a comprehensive market entry strategy that includes a tactical portfolio launch, multi-channel distribution, and brand development.
- Providing comprehensive import and logistics services including regulatory compliance, supply chain management, and warehousing & storage.
- Ensuring market coverage and effective execution via sales team organization and account management.
Results
- Positioned the Élevage Mexico portfolio to include the main cultural hubs of Mexico City, Guadalajara, and Monterrey and notable tourism destinations and secondary markets.
- Established a regulatory compliance framework and a warehouse and logistics infrastructure that is flexible and responsive to external pressures (e.g., tariffs, market shifts, etc.).
Analysis
Lessons Learned
- Decisive Action: As other companies waited to see what, if any fallout, came from the combination of pending EU-Mexico agreement implementation and US tariff threats, acting quickly helped Élevage get a headstart in the market and establish premium positioning.
- Regulatory Navigation: Understanding and complying with international trade regulations was essential to streamline the import and distribution process and avoid legal pitfalls.
Next Steps
- Continue market expansions that position Élevage for long-term market leadership in the premium and ultra-premium segments.
Entering Mexico felt like an insurmountable task until we partnered with MGx. They mapped the competitive landscape, identified the right accounts, developed our import, distribution, and fulfillment infrastructure, and built a pricing strategy that made sense for our portfolio.
