Tequila 101

Is tequila a craft or a commodity? Is it a taste of Mexico’s culture and heritage, or a mass-produced marketing bonanza? Many tequila makers, marketers, and enthusiasts have strong feelings about the category, and about how its past and its present diverge (or don’t). Before we consider the concerns, let’s start with the basics.

Like mezcal, tequila is a Mexican spirit made from agave. Tequila originated in the mezcal camp. It then evolved its own identity over the years until its popularity and market power eventually sparked rules defining its characteristics. Tequila may be made from only one type of agave—Agave tequilana Weber, variety azul—and may only be produced in a specific geographic area in Mexico. Blue Weber agave take five to seven years to reach maturity. And when harvested, the central core, or piña, may weigh around 60 pounds.

Skipping right to the next production step would ignore an essential aspect of quality tequila: the agave plant’s irreplaceable significance. “Agriculture is a craft, you know?” says Sergio Mendoza, co-founder of Don Fulano. “Everything that happens at the distillery—how you cook, how you extract, fermentation, distillation, maturation—agriculture is the single most important thing. Because if you don’t have a good raw material, then there’s nothing else you can do along the way to correct it.”

There are several ways to cook and crush agaves, giving producers a sugar-rich liquid that’s ripe for fermentation. Some producers put the liquid in an open-topped vat (typically wooden) and let naturally occurring yeasts do what they do. Others may cultivate these natural yeasts, much like a sourdough starter, while others control the process entirely using specially bred commercial yeast and closed stainless steel systems. “When my grandfather started distilling tequila, there was no such thing as commercial yeast,” says Carlos Camarena, co-founder of Tequila Ocho. “It was airborne yeast and the yeast coming in on the agave from the fields. Every time you bring in agave from a different field, you have slightly different yeast that’s coming in.”

Tequila is traditionally distilled in pot stills. But column stills helped modernize the industry starting in the 19th century. Today, they are widely used, primarily for large-scale brands. Tequila may be sold unaged as a blanco or plata tequila. Or it may be matured in oak and sold as a reposado, añejo, or extra añejo tequila. What started as a regional offshoot of mezcal is now a booming global business. More than 150 distilleries make tequila today, with many making multiple brands.

According to the Consejo Regulador del Tequila (CRT), there were 2,492 registered brands as of 2025. Many brands are owned by global conglomerates or outside investors. Take a walk through a large liquor store, and the enthusiasm that celebrities have for tequila is palpable. (The 2017 sale of Casamigos—the brand founded by actor George Clooney with Rande Gerber and Mike Meldman—for a reported $1 billion may have made many in Hollywood think long and hard about Margaritas.)

But take another look at tequila, perhaps through the eyes of some of the many agave-loving bartenders around the world, or the collectors and enthusiasts who populate social media. There’s a mighty marketing muscle behind today’s tequila, with all of the drawbacks that accompany the hype. But there’s also a deep undercurrent of respect and support for distillers following traditional and/or transparent approaches, and for the spirits that speak to their place with sincerity. Tequila has always been many things, and there’s a lot of territory to explore.

A Brief History of Tequila

• Pre-1519: Mesoamerican people have many uses for agave including pulque, a fermented beverage made from the plant’s sweet sap (aguamiel).

• 1530: Following the arrival of Spanish conquistadores in 1519, missionaries establish the town of Tequila in Jalisco.

• Mid-1600s: A distilled spirit known as vino de mezcal becomes a popular alternative to pulque.

• 1785: Charles III of Spain bans production of spirits in Mexico, forcing production underground. Charles IV lifted the ban in 1795.

• 1795: José María Guadalupede Cuervo is granted the first commercial distillery license for agave spirits.

• 1800: More distillers move from rural areas into Tequila. By mid-century, “vinos de mezcal de Tequila” gain recognition and a commercial identity grows.

• 1873: Don Cenobio Sauza opens a distillery in Tequila. In 1893, his “mezcal brandy” wins medals at the World’s Columbian Exposition in Chicago.

• 1888: Completion of the Guadalajara–Mexico City Railway allows easier transportation within Mexico. And the industry modernizes facilities to make tequila production more efficient.

• 1889: The Tequila Tonic Export Co. of Chicago advertises tequila as “Nature’s Own Tonic” across the U.S.

• 1910-1920: The Mexican Revolution impacts tequila, making it a symbol of national identity while moving production away from large haciendas and toward smaller producers.

• 1919-1947: Prohibition and World War II limit production of U.S. and European spirits, boosting tequila’s popularity.

• 1937: London’s Café Royal Bar Book includes a recipe for the Picador cocktail. By 1953, the recipe is circulating as the Margarita.

• 1949: The Mexican government establishes the Norma de Calidad de Tequila to ensure tequila’s quality and define where and how it’s made.

• 1960s: With surging demand for tequila, the law is amended to allow the use of flavorings and colorings, and of non-agave sugars.

• 1974: A Denomination of Origin (DO) is established for tequila, giving it a similar protected status as Champagne or Cognac.

• 1976: Tomas Estes establishes the Pacifico Group, beginning the introduction of quality tequila to Europe.

• 1994: Tequila regulation is transferred to Consejo Regulador del Tequila (CRT), responsible for establishing, verifying, and certifying compliance.

• 1995-2008: Annual production of tequila triples, and the market for 100-percent-agave tequila surpasses that of mixtos.

• 2023: Tequila overtakes American whiskey in U.S. market value, and threatens vodka’s preeminence.

• 2025: Twelve tequila brands join the Gente Buena Foundation’s Good Agave Pledge, committing to improve the economic and environmental challenges faced by tequila workers.