Business Day

Teslaquila heads for showdown

Industry group opposes Tesla CE’s bid to trademark the alcoholic drink

- Sharay Angulo Mexico City

Tesla co-founder Elon Musk and Mexico’s tequila producers could be headed for a collision after the agave-based drink’s industry group opposed the flamboyant billionair­e’s efforts to trademark an alcoholic drink dubbed Teslaquila.

Tesla co-founder Elon Musk and Mexico’s tequila producers could be headed for a collision after the agave-based drink’s industry group opposed the flamboyant billionair­e’s efforts to trademark an alcoholic drink dubbed Teslaquila.

One of the world’s richest people and CE of Tesla, Musk is known for ambitious and cutting-edge projects ranging from vehicle electrific­ation and rocket building to high-speed transit tunnels. Now it seems Musk could be setting his sights on disrupting the multibilli­ondollar tequila industry.

On October 12, he tweeted “Teslaquila coming soon” and an accompanyi­ng “visual approximat­ion” of a label with the Tesla logo and a caption that stated “100 percent Puro de Agave”.

Not so fast, said Mexico’s Tequila Regulatory Council. It said the “name Teslaquila evokes the word tequila … [and] tequila is a protected word”.

The council keeps tabs on producers to make sure they stick to strict denominati­on of origin rules, which dictate the spirit must be made in the states of Guanajuato, Jalisco, Michoacan, Nayarit or Tamaulipas, among other requiremen­ts.

According to the US Patent and Trademark Office website, Tesla has filed an applicatio­n to trademark “Teslaquila” as a “distilled agave liquor” and “distilled blue agave liquor”. Similar applicatio­ns have been filed in Mexico, the EU and Jamaica.

“If it wants to make Teslaquila viable as a tequila it would have to associate itself with an authorised tequila producer, comply with certain standards and request authorisat­ion from Mexico’s Industrial Property Institute,” said the council.

“Otherwise it would be making unauthoris­ed use of the denominati­on of origin for tequila.” The council said the name Teslaquila could make consumers confuse the drink with tequila.

Tesla did not respond to requests for comment.

Other high-profile celebritie­s have cashed in on tequila’s newfound internatio­nal appeal, as the spirit moves into the ranks of top-shelf liquors and sheds its image as a fiery booze drunk by desperadoe­s and frat boys.

In 2017, Diageo bought actor George Clooney’s high-end tequila brand Casamigos for up to $1bn. Other recent deals include Bacardi’s January buying of fine tequila maker Patron Spirits Internatio­nal for $5.1bn. After years of speculatio­n, Mexico’s Beckmann family launched an initial public offering of Jose Cuervo in 2017, raising more than $900m.

 ?? /Reuters ?? Spirited venture: Tesla cofounder Elon Musk is attempting to trademark Teslaquila, described as a distilled agave liquor, but is facing opposition from Mexican producers.
/Reuters Spirited venture: Tesla cofounder Elon Musk is attempting to trademark Teslaquila, described as a distilled agave liquor, but is facing opposition from Mexican producers.

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