Agave Spirits have been on the rise for quite a while now, with statistics showing that the sales of Agave spirits would soon surpass even that of vodka. Despite the conversation around raising tariffs for Mexican goods, the USA continues to remain a large and lucrative market for agave spirits. In light of this conversation, allow us to introduce you to Shawn Miller, co-founder—or as he likes to call himself, the “Right Brain”—of PKGD Group, an import company dedicated to bringing authentic and producer-owned Mexican spirits to the U.S. market. With a deep respect for transparency and quality, PKGD Group curates a portfolio of world-class spirits while fostering strong relationships with producers. Miller’s approach goes beyond business. It's all about building trust, educating consumers, and navigating the complexities of the industry with integrity. In this interview with BevRoute, he shares insights on selecting brands, nurturing partnerships, educating the market, and the future of agave spirits in the U.S. market.

Edited excerpts from the interview.

PKGD Group focuses on producer-owned, additive-free craft spirits. What criteria do you use when selecting brands for your portfolio or choosing which producers to partner with?

We have three primary criteria, and you’ve already touched upon them. First, the spirit must be a Mexican spirit owned by the producer or the family that makes it. Second, it must be crafted with complete transparency. While we prioritize additive-free production, what matters most is that the entire process is fully disclosed—if additives were used, we would openly communicate that. Finally, the spirit must be a world-class representation of its category. Everything we work with is, in our view, as exceptional as any top-tier product of its kind. There is also a fourth factor where we have to genuinely enjoy working with the people behind the brand. Strong communication and a smooth working relationship are essential. While this isn’t something we can put on a checklist, we’re fortunate to collaborate only with people we truly respect and enjoy working with. It’s not just about purchasing their product and selling it ahead; instead we see it as a shared journey.

Since building personal relationships is just as important in business, how do you nurture these connections over the years, not just with producers but even with distributors?

In many ways, these are two entirely unique challenges. With producers, nurturing relationships takes time and a lot of shared experiences to bond over. I spend a lot of time in Mexico, visiting every month, and one of the things I appreciate most is how business is conducted there. We’ll have important meetings and discuss serious business matters, but we also take the time to discuss our families, share a bottle, and discuss topics like politics, sports, or Formula 1. It’s a deeper level of connection, and for that reason, many of my closest friends are in Mexico. I don’t see this kind of relationship-building happening as much at home, but it makes a huge difference in how we work together.

With distributors, the relationship is important, but it’s much more business-driven. Distributors are often focused on profitability, and the managers we work with are accountable for hitting financial targets. The reality is that until a brand contributes to their bottom line, you don’t really have a meaningful relationship with them. And this situation was frustrating for us in the beginning because we couldn’t understand why distributors weren’t paying attention to us, but the truth is they can’t afford to focus on brands that aren’t driving revenue. When a brand reaches a critical point, where it plays a crucial role in their financial success, the nature of the relationship entirely changes. However, up until that point, the brand, the importer, and the team are responsible for demonstrating their worth. I see many small brands frustrated with their distributors, but my perspective has changed. The reality is, if your brand isn’t yet making an impact on their financial statement, you can’t really expect them to prioritize you. That’s just how the business works.

Do you have any educational programs in place to assist distributors in understanding the value your brand offers?

Absolutely! We focus on educating our distributors, store employees, bar and restaurant staff, or even influential consumers in order to empower them. We call these people “influencers” because it is these individuals who shape purchasing decisions in subtle yet impactful ways. To execute this, we create marketing and training materials tailored for on-trade and off-trade personnel, as well as for engaged consumers. This educational approach was particularly instrumental in the growth of G4, which is a tequila brand. By teaching consumers about authentic and high-quality tequila, which also exercises full transparency, we found out that they in turn educated store employees and bartenders. Many even went so far as to request that their favorite restaurants stock a particular brand of tequila. This kind of informed consumer demand extends beyond just purchasing a bottle—it actively influences the marketplace.

G4 Tequila

What are some of the biggest misconceptions you’ve encountered about agave spirits? And how do you tailor your education to address these misunderstandings?

One of the biggest misconceptions is the idea that tequila should be smooth or sweet. Many of the popular tequilas on the market are heavily manipulated during production, resulting in flavors that resemble vanilla wedding cake more than authentic tequila. The challenge is that many consumers, especially in the U.S., haven’t had the opportunity to taste real agave in its pure form. However, they’re very familiar with flavors like vanilla, bubble gum, and sweet, creamy textures. And people naturally gravitate toward what they know and like. But authentic tequila isn’t that. A well-made tequila is complex, with notes of black pepper, white pepper, jalapeño and spice. It has structure, it makes your mouth salivate, and it carries a bold character that’s the opposite of the overly smooth profiles many consumers are used to.

So, when we educate consumers, we focus on breaking down these expectations. We explain what real agave spirits should taste like and why. We also teach consumers to read labels, understand production methods, and recognize when additives are being used to mask the true flavors of the spirit. The goal isn’t just to promote a particular brand but to elevate the overall appreciation for authentic tequila and mezcal.

Tequila and mezcal saw rapid growth in 2024. But trade tensions, including a proposed 25% tariff on Canada and Mexico, raised concerns. How do you see the future of agave spirits in the U.S. market?

As soon as we heard rumblings about potential tariffs, my partner Jeff Ernst started conversations with our producers back in early December. The goal was to prepare for any possible impact and develop a strategy to mitigate it. Because we work directly with producer-owned brands, we have a level of agility that allows us to navigate these challenges more effectively. In fact, if executed well, our strategy could even strengthen our position compared to some other brands in the market. So, we do have an action plan in place, and we’ve been ready for months. Beyond that, from what I’ve observed, especially managing social media for the brands we work with, American consumers have mixed reactions. Of course, no one is in favor of paying more, but I’ve seen quite a few comments from people saying they’d be willing to pay a little extra, at least for a while, if they believe it helps address broader national concerns.

That said, history shows that tariffs can have lasting consequences. When Trump previously imposed tariffs on Scotch whisky, it severely hurt the category, and it still hasn’t fully recovered. If tequila and mezcal become significantly more expensive, there’s a real risk that consumers will explore other spirits, find something they enjoy, and never return. That could be damaging to the entire category long-term. Overall, I think we’re well-positioned, and there is consumer willingness to absorb some of the cost. But there’s no denying that this could pose serious challenges to the growth of agave spirits in the U.S. market.

The U.S. is a lucrative but complex market. Have you encountered a hesitant producer, and how did you convince them by highlighting your support?

A friend of mine, Álvaro Fernández Labastida, who produces raicilla and serves as the President of the D.O. for Raicilla, often emphasizes the importance of finding the right partner. The U.S. market is incredibly complex, and even experienced producers struggle to navigate the agave spirits industry. In his case, success came only after identifying someone who understood the market, had strong industry connections, and could be trusted to guide his brand. Once he secured that partnership, his business began to thrive.

This challenge is common among small producers in Mexico. Many struggle to find a trusted partner who also understands the intricacies of the U.S. spirits market. Often, they turn to friends or family members living in the U.S., relying on personal relationships. While well-intentioned, these connections may lack the industry knowledge, business expertise, or network needed to successfully launch a brand.

Our approach bridges this gap by combining trust with industry expertise, strategic planning, and valuable connections. Rather than leaving producers to navigate an unfamiliar market alone, we provide a clear, structured pathway to success.

Ultramundo Mezcal

You’ve expanded into initiatives like PKGD Mexico and investing in agave cultivation. Where do you see the company evolving in the next five to ten years?

Yes, we do have a company in Mexico now. However, I’d say our involvement in agave cultivation is more of a passion project. I don’t know if we’ll ever make money from it, but it’s something we enjoy. What’s more significant is that we have a fully operational company in Mexico, with an office and a dedicated team based in León, Guanajuato, right on the edge of tequila country. Our team there is highly skilled in graphic design, branding, videography, editing, and writing, supporting our marketing efforts, especially in the digital space. So while the agave project is just for fun, we really like our focus and don’t see ourselves diversifying too much. Our foundation is built on three key principles: being producer-owned, world-class, and transparent. That’s what guides us. With G4 Tequila, for example, it’s the fastest-growing tequila brand in the U.S., and the distillery is significantly increasing production. The goal is to double the brand’s size this year and again next year, all while maintaining, or even improving, the quality. Last year, G4 was the 44th largest tequila brand in terms of sales in the U.S. This year, we’re already at 33rd and expect to reach around 25th or 20th soon. So, we’re very focused on growing that.

We’re also scaling up our raicilla brands, El Acabo and Asil, and two other small but excellent mezcal brands. Another key part of our growth strategy is our close partnership with Total Wine. We’re developing exclusive brands with them, such as El Ateo, a producer-owned tequila that is growing as fast as production allows. It’s an incredibly strong relationship, and there’s a lot of potential to expand further.

Looking ahead, I think there’s a good chance we’ll take on another producer-owned tequila brand, one that’s already well-respected in the authentic tequila space but could benefit from the kind of growth we’ve achieved with G4. We’ve proven that we can take a brand from relative obscurity to the top 25, and we’re excited about the possibility of doing that again!

With the rise of e-commerce and digital media, many aspects of the industry are becoming increasingly virtual. How do you see this trend impacting the importing and distribution sector? Do you plan to invest heavily in this space?

Up until this week, we’ve never had a buy button on any of our brand websites. We’ve implemented it for the first time, using a company called Bottle Nexus to power the system. That said, e-commerce in the spirits industry is still facing challenges. Unlike wine, spirits have several regulatory hurdles, such as state-specific laws, taxes, compliance issues, and, of course, high shipping costs. The vast majority of consumers still buy spirits from their local liquor stores rather than ordering online.

However, technology is evolving, and I do think Bottle Nexus has a unique approach to handling compliance and streamlining the process. If consumer behavior shifts more toward online purchasing, it could change how small or emerging brands break into the market. It’s currently difficult for new brands to gain traction with major distributors or large retailers. But if they can leverage digital marketing like TikTok and connect directly with an e-commerce platform, they might be able to bypass some of those traditional barriers and reach consumers more effectively. As an entrepreneur, I find that prospect really exciting. If someone cracks the code and makes e-commerce truly work for spirits, it could open up huge opportunities for smaller brands. I’d love to see that happen.

Ultramundo Mezcal

Since we touched on compliance issues, if you could change one thing about the U.S. distribution system, what would it be and why?

The U.S. is one of the few places where the federal government essentially allows every state to create its own rules for alcohol distribution. On one hand, that’s cool. It gives states autonomy. However, it presents significant challenges for businesses such as ours. When you’re distributing spirits in the U.S., you’re basically dealing with 50 different countries, each with its taxes, licensing requirements, and compliance regulations. It’s incredibly complicated, and keeping track of all the different rules can be overwhelming. If I had the power to unify the system, I would establish a single set of regulations for the entire country. That would make things much simpler for everyone. But I doubt that’s happening anytime soon, so we just have to deal with it.

It’s particularly challenging for new brands coming into the U.S. They might launch in California and assume that’s how things work across the country, only to realize that when they expand to Texas, for example, the rules are completely different. It’s almost like starting from scratch. That can be really confusing, even for seasoned industry professionals. 

Header image sourced from Shawn Miller.

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