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Tequila Regulations: A Guide to the Production Landscape

Tequila’s esteemed status as a national treasure is safeguarded by a stringent set of rules and regulations. Understanding the history of tequila regulation and the governing bodies behind these laws provides crucial insights into its journey. This article will explore the standardization of tequila, the Denomination of Origin (DO), the role of the Consejo Regulador de Tequila (CRT), and the modern growth of tequila, including the role of NOM identification.

The Standardization of Tequila

The first attempts to regulate the tequila industry began in 1949 when the Mexican government introduced the Normas de Calidad de Tequila, a set of rules designed to maintain the quality of tequila during a time of increased manipulation of the spirit. Initially, all tequila was required to be produced from 100% agave, with an alcohol level (ABV) of 45-50%, and could be sold either as natural (unaged) or añejo (aged 2 years or more).

aged-tequila-examples
blanco offers a pure taste of agave, while reposado and anejo tequilas introduce layers of complexity through caramel, vanilla, and subtle spice notes

As demand grew, quality declined. By 1964, the normas were updated to allow for 70% agave sugars and 30% from other fermentable sugars, such as corn or cane. This change helped address the long growth cycle of the Weber Blue Agave, which takes about 7 years to mature, making it challenging to meet sharp increases in demand.

In 1968, the rules were amended to include three age categories: blanco (0-2 months), reposado (2-11 months), and añejo (1 year or more). By 1970, the agave content requirement was further modified to allow as low as 51% agave sugars, a rule that stands today. In 1976, tequila was divided into two classes: 100% agave tequila (produced only from agave sugars) and mixto (produced with at least 51% agave sugars). Mixto tequilas cannot state “100% agave” on the bottle and must simply be labeled “tequila.” In 2006, a new age category, extra-añejo, was introduced, requiring a minimum of 3 years of aging.

Production techniques evolved during this period as well. The 1950s saw the introduction of mechanical shredders for chopping agave plants, and the 1960s brought autoclaves for cooking agaves with steam, significantly reducing cooking time from several days to less than 12 hours. However, economic challenges in the 1980s, including debt and agave shortages, led to the closure of many tequila companies.

The Official Denomination of Origin (DO)

In 1974, the Denomination of Origin (DO) was established, designating Mexico as the official home of tequila. Similar to Champagne and Roquefort, the DO creates a direct connection between a product’s quality and its place of origin, protecting the name from becoming generic. Tequila takes its name from the historic town where production first began.

tequila-denomination-of-origin-producing-mexico-states
THE DOT GEOGRAPHICALLY RESTRICTS TEQUILA PRODUCTION TO FIVE STATES IN MEXICO.

The DO controls where tequila is produced, how it’s made, where raw materials are grown, and many other aspects of production and marketing. Only five regions in Mexico are allowed to produce tequila: Jalisco, Guanajuato, Nayarit, Michoacán, and Tamaulipas. The entire production process, from the growth of the Weber Blue Agave to bottling, must be conducted in these regions.

The CRT is Established

In 1994, the regulation of tequila was transferred from the government to the Consejo Regulador de Tequila (CRT). The CRT now establishes, verifies, and certifies compliance with the rules, known as the Normas Oficial Mexicana (NOM), set by the Mexican government.

The CRT guarantees the provenance of tequila wherever it is sold worldwide, overseeing agave growers, producers, bottlers, marketers, and the Mexican government. Regulations at this time included all of those set forth previously in the Normas de Calidad de Tequila prior to 1994, including the introduction of the following: 

  1. Every agave plant must be registered with the CRT at the time of harvest.
  2. Distilleries must test and record chemical analyses of the product at various stages.
  3. Every cask must be sealed by the CRT and unsealed before bottling.

While restrictions on production methods such as crushing, cooking, and distilling were not established, the CRT’s role as industry watchdog set the stage for a new era of professionalism and sophistication in tequila manufacturing. The CRT was formed at the urging of an earlier organization, the Cámara Nacional de la Industria Tequilera (CNIT), which functions as the tequila industry’s Chamber of Commerce.

Tequila’s Denomination of Origin (DO): An Overview

 

Curious to learn more about  how the Denomination of Origin (DO) and the Consejo Regulador del Tequila (CRT) provides security for cask investors? Read all about it in our dedicated articles.

 

Modern Growth

The CRT assigns distilleries in Mexico a unique identifier called a NOM. Every bottle of tequila, whether 100% agave or mixto, must have a NOM characterized by the three letters “NOM” followed by four numbers. This identifier guarantees provenance, enabling each bottle to be traced back to its producer.

Today, there are around 150 distilleries and 1500 brands of tequila. Most brands don’t produce their own tequila; only about 13 produce exclusively for their brand. Thanks to rigorous quality standards imposed and enforced by the CRT, coupled with strategic government partnerships, the reputation of tequila began to improve in the mid-1990s and early 2000s. Annual production tripled between 1995 and 2008, and the market for high-end tequilas grew larger than that for mixto tequilas.

tequila-NOM-regulation
Example of a nom

In 2012, NOM-006-SCFI-2012 was published, updating regulations. This NOM states that blanco tequila may not have additives, extra-añejo tequila can have an age statement on the label, bulk tequila can only be made by authorized producers, and the distribution of bulk tequila through vending machines is prohibited. Additionally, agave must be registered during the calendar year of its planting and updated annually.

Today, tequila is a global phenomenon. As of 2018, the CRT reported 155 authorized producers and 1,438 certified tequila brands making the spirit in Mexico.

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