The Challenge
As WARBEVCO looked to expand Mezcal Sigiloso’s footing in the growing U.S. market, they had two main priorities: transforming their supply chain into a strategic competitive advantage and—most importantly—optimizing their positioning for high-velocity SKUs.
Based on an assessment of Sigiloso’s operations, we identified four main roadblocks standing between them and successful portfolio expansion and market impact: intra-Mexico logistics and sourcing, production coordination, export management, and U.S. import & distribution.
The Solution
Maguey Exchange provided a comprehensive set of solutions:
- Intra-Mexico Supply Chain Optimization: Including direct factory partnerships with premium glass manufacturers and providing end-to-end import management from production.
- Production Integration: Synchronized raw material deliveries with quality management and provided data-driven production scheduling with constraints management and technology integrations.
- Export/Import Facilitation: Automated documentation preparation and provided guidance for navigating regulatory compliance and pre-clearance processes.
- U.S. Warehousing & Distribution: Provided seamless coordination from Mexico production to U.S. delivery, including strategic regional facility placement with temperature control and real-time inventory tracking and automated replenishment.
Results
- 740% velocity growth: From 0 to 65.37 cases/month in 15 months
- $106,400 annual revenue: 29.65% of WARBEVCO's total portfolio revenue
- 16-market distribution: 300% expansion from initial 4 markets
- 57% contribution margin: Maintained profitability despite accessible $108.52/case pricing
- 89 total clients: Including 55 dual-brand clients generating 67.49% of total revenue
- 32% bottle cost reduction: Optimized sourcing reduced costs from $2.52 to $1.71 per bottle
- Channel leadership: 64.43% retail penetration with strong on-premise "well" positioning
Analysis
Sigiloso demonstrates the effectiveness of strategic market gap identification combined with optimized supply chain management. The brand's success validates the dual-portfolio approach, with Sigiloso driving volume velocity while complementing the premium positioning of WARBEVCO’s other portfolio brands (Mala Mia).
Lessons Learned
- Market positioning drives velocity: Accessible pricing ($108.52/case) combined with authentic quality enables high-volume growth.
- Supply chain optimization preserves margins: Despite lower pricing, 57% contribution margins remained strong through operational efficiency.
- Distribution leverage accelerates growth: Utilizing WARBEVCO’s existing portfolio network enabled immediate access to 16 markets without additional channel development costs.
Next Steps
- Scale production capacity: Leverage the maestro mezcalero’s Espadin capacity of 4,444 cases/month for continued growth.
- Expand ambassador network: Target high-velocity markets (e.g., Wisconsin: 30.17 cases/month model) for replication.
- Optimize inventory positioning: Forward-position stock in key markets to support 65+ cases/month velocity.
When we needed to scale our supply chain started breaking. MGx restructured our logistics, found efficiencies we didn't know existed, and helped us hit our volume targets without sacrificing quality.
