Tequila from the point of view of legislation: what does "100% agave" really mean and why it cannot be produced outside Mexico

1. Tequila as a protected designation of origin (DO/GI)

Tequila is a denominación de origen (DO) - that is, a protected designation of origin, like Cognac or Scotch whisky.

• It can only be produced in Mexico, specifically in the state of Jalisco and selected regions of the states of Nayarit, Tamaulipas, Michoacán and Guanajuato.
• In the EU, 'Tequila' is officially recognised as a geographical indication (GI) and its use is legally protected.
• This means that no producer outside Mexico can legally use the designation tequila, regardless of the production technology.

👉 Practical impact: If someone distills agave spirit outside of Mexico, it is always "agave spirit", not tequila.

2. NOM (Norma Oficial Mexicana)

The whole sector is governed by the norm: NOM-006-SCFI (current version 2012)

This standard:

• Defines what tequila is,
• sets out the production processes,
• regulates labelling, export, bottling,
• controls the entire chain "from field to bottle".

Compliance with the standard controls: CRT - Consejo Regulador del Tequila

• certifies producers,
• controls production and exports,
• issues export certificates for each batch.

Without CRT certification, tequila cannot be exported or legally sold.

3. NOM number - the identity of each tequila

On every bottle you will find the NOM number:

• This is the identifier of the distillery that produced the tequila,
• assigned by the Mexican government (via the CRT),
• allows you to trace the origin of the product.

Important:

• Multiple brands can have the same NOM (one distillery produces for multiple brands),
• NOM does not guarantee quality, only authenticity.

4. Agave vs. 100% agave vs. Blue Weber agave

This is a crucial point that is often misinterpreted. One of the biggest marketing confusions is the difference between the categories.

👉 Tequila is only ever made from one type of agave: Agave tequilana Weber azul (Blue Weber agave) ➡️ There is no tequila made from any other type of agave.

a) "Tequila" (mixto)

• 51 % minimum of agave sugars,
• up to 49 % may be from other sources (sugar, molasses, corn).

(b) '100% agave tequila'

• 100% of the sugars come from Blue Weber agave,
• with no added external sugars.

5. IBC, bulk and bottling

This is a critical part for the trade:

100% agave tequila

• must be bottled exclusively in Mexico,
• exported only as the final product in the bottle.

Mixto tequila

• can be exported in bulk (e.g. IBC tanks),
• it can then be bottled outside Mexico.

👉 Practical impact:

• Private label projects outside Mexico are only realistic for mixto,
• for the premium segment (100% agave) the whole bottling chain must be in Mexico.

6. Classes of tequila according to legislation

The NOM also defines categories according to ageing:

• Blanco (unaged)
• Reposado (min. 2 months in barrel)
• Añejo (min. 1 year)
• Extra Añejo (min. 3 years)
• Joven / Oro (blend)

7. Export and import to the EU

a) Legislative framework

• EU recognises tequila as a GI → must comply with Mexican rules
• imports are subject to a CRT export certificate

b) Customs and trade

• tequila is covered by the EU-Mexico trade agreement
• in practice, the duty on tequila is 0% (preferential treatment if rules of origin are met)

👉 difference to rum:

• for tequila there is no "quota system as for some rums",
• it is fully liberalised trade under the agreement.

c) EU requirements

• min. 35% ABV
• permitted bottle volumes (700 ml standard, etc.)
• labelling must comply with EU spirits regulation

8. Labelling and compliance

Each tequila must contain:

• NOM number
• country of origin (Mexico)
• category (100% agave/tequila)
• grade (blanco, reposado...)
• details of the producer/bottler

Exports to the EU additionally require:

• the language of the label,
• health warnings,
• compliance with EU spirits regulation.

9. Market control and authenticity

CRT shall ensure:

• tracking of each batch,
• export control,
• anti-counterfeiting protection.

Without this certification it is not possible to:

• to place the product on the market,
• pass customs clearance.

Conclusion: tequila as a regulated "asset class"

From a business perspective, tequila is unique:

• It is a fully regulated product with a geographic monopoly,
• it has a well-defined supply chain,
• has high brand protection in global markets,
• while allowing for different business models (mixto vs. 100% agave).

👉 For the investment or premium segment:

• Almost exclusively 100% agave tequilas are relevant,
• which have higher value, controlled origin and lower risk of manipulation.