Summary
This article discusses the current agave shortage and its impact on Becle's (BCCLF) profitability and valuation. My initial report on Becle provides a more detailed view of the company, its operations, and my investment thesis.
The Shortage
In 2019, Becle shipped 10.9 million cases of tequila making it the largest tequila producer in the world. Tequila sales equaled 61% of the company’s 2019 sales. The key raw material for Tequila is agave. For tequila to be called tequila, it must be made with the blue agave plant produced in a certain region in Mexico.