Table 7.

Comparison of national drinks using the adaptive capacity framework

CategoryTequila (Mexico)Pisco (Peru)Cachaça (Brazil)Singani (Bolivia)
Social networksLocal networks among producers. Tequila already has a consolidated international global trade network. National associations that support the industryCooperatives and associations to reach export levels. Building of global trade networksBuilding of global trade networks. Enhancing the use of GI as a strategy for consolidation and quality improvement by the national entities and producersBuilding of global trade networks as well as local networks with stakeholders and among producers
Institutional capacityAppellation of origin, government support for the national image, and strong legislation supporting producers. Free trade agreements support exportsAppellation of origin, government support for the national image. Lack of proper regulationLack of proper regulation and high industry taxes. The government supports the industry with GI for national and international imageAppellation of origin, government support, but still a lack of proper regulation and incentives
Economic resourcesThe industry is consolidated and growing fast. Some minor value chains participants do not receive the same value createdThe industry is growing slowly. Some minor value chain’s participants do not receive the value they createdThe industry is growing moderately, with a significant gap between large distilleries and artisanal productionThe industry is growing slowly. Some minor value chain’s participants do not receive all the value they created
InfrastructureMexico is one of the countries with the most robust logistics infrastructure and connectivity in Latin America. The Port of Manzanillo is the biggest in the regionNew port infrastructure, but poor and expensive connectivity in landWell-developed infrastructure in land and ports. Port of Sao Paulo is one of the most important ports in Latin America. High transportation costs increase competitiveness in international marketsBolivia is a land-locked country, which increases the export costs
Economic diversificationAdditional beverages with important levels of consumption, such as mezcal. Alternative uses of the agave azul crop in other industries, such as inulin and agave syrupOther products in minor scale, such as wine or grapesMinor products derived from sugarcane. Need to explore gastronomy, mixology and creative tourismHigh-altitude wines are produced by most of the same distilleries involved in Singani manufacturing
Environmental responseHigh risk against plagues, climate change and natural disasters. However, the government supports the industry and promotes diverse sustainable practices. Consejo Regulador del Tequila is a key actor. Overproduction is now a challengeHigh risk against plagues, climate change and natural disastersSugarcane is a strong crop in Brazil, but it needed the support from the government and sustainable production practicesHigh risk against plagues, climate change and natural disasters, needed the support of the government
SkillsLeading actors are interconnected through a traditional agricultural system in Mexico, and an innovative export-oriented industry. Today, high-skilled labor is in demand for industrialized activity in value chainsTraditional and cultural heritage in the production and low-skilled labor for operative tasksTraditional and cultural heritage in the production and low-skilled labor for operative tasksTraditional and cultural heritage in the production and middle-skilled labor for operative tasks
Innovation and technologyIndustrialized and artisanal production. The Mexican government has invested in several programs to enhance innovation and technology in tequila’s value chain, specifically for exports. Sustainability practices are growingMost of the production is artisanal. There are a few brands that have a semi-industrial manufacturing processIndustrialized and artisanal production. The Brazilian government has invested in programs and technologies to enhance the value chain of cachaça and support producers, mainly the bigger onesIndustrialized and artisanal production. Farmers and producers receive no funds from external agencies or the government
Source(s): Authors’ elaboration based on the frameworks of Mendis-Millard et al. (2003) and Wall and Marzall (2006)

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