In Mexico, it is referred to as Tequila Puro. In the United States, we know them as 100% agave tequilas. They have captivated the imagination of the American drinking public and consumer interest has been nothing short of phenomenal.

Handcrafting 100% blue agave tequila is an expensive, labor-intensive process. Ounce per ounce, these super-premium tequilas are comparable in cost to alembic brandies and well-aged single malt Scotch. Their extraordinary character more than offsets the expense and has propelled these sophisticated spirits to the forefront of popularity.

These are the best of times for tequila aficionados. There has never been such a broad selection of premium brands from which to choose. The category is expected to grow faster than any other spirit category in the U.S., particularly within the super- and ultra-premium segments, both of which are anticipated to grow at a double digit pace.

Unlike those that quaff other top-shelf liquors, the growing legions of tequila aficionados are likely as attracted to the romance of discovery as they are the irresistible appeal of the spirit. The majority of these handmade tequilas are not overnight, one-hit wonders, rather well established brands rooted in tradition and steeped in heritage. These are not products formulated by chemists. They are typically the vision of one man, the patriarch of a family that has accepted as his mission the crafting of the finest tequila possible.

“In my case, I learned how to distill tequila in my teens from my uncle. His passion soon became my passion. His knowledge soon became mine,” says Felipe Soto Mares, master distiller of El Duende Tequila and graduate of the prestigious Academia Mexicana Del Tequila in Guadalajara. “Comparing the production of 100% agave tequilas to that of cognac is quite apt. In each case, the distillation techniques are centuries old and both are distilled from expertly cultivated products—grape varietals or mature agaves.”

David Ravandi, importer of super-premium Casa Noble Tequila, agrees with the comparison between cognac and top-shelf tequilas. “Both of these spirits are representative of their countries of origin. Tequila and cognac are both rooted in tradition and closely tied with their respective cultures. As such their production is highly regulated and closely supervised. Regardless of the particular brand on the label, when you hold a bottle of 100% agave tequila you are assured of the utmost in quality.”

One wonders though is there a point where there are too many brands of premium tequilas on the shelves? Perhaps, but don’t start looking for that saturation point to come soon. For many, the appreciation of fine tequila requires sampling new brands and styles. There’s a joy to the discovery, a process without limitations, and if you provide the visa and port of entry, you’ll be the long-term beneficiary.

The Crafting of 100% Agave Tequila

With the continuing growth of tequila, consumers are increasingly asking what’s the difference between the various brands. If they’re made from nothing but agave, then how can there be such a huge disparity between quality, taste and selling price?

Premium, 100% agave tequilas are single-ingredient products. They essentially contain nothing but blue agave and a small amount of demineralized water. Contrary to several marketing campaigns, there are no closely held family recipes for tequila puro passed down from one generation to the next.

While technology has made our lives better in countless ways, it has done nothing to improve the process of making tequila. With few exceptions, those who employ the traditional methods continue to produce the most flavorful and highest quality tequila. Cutting corners or speeding up the process may make financial sense, but it doesn’t make great tequila.

In reality, the differences between brands of 100% agave tequilas are years in the making. From cultivating agaves to the unbarreling an añejo, the production cycle can exceed 15 years. It is a time-honored process, one in which every decision made along the way ultimately will impact the tequila.

“You can make a bad wine from great grapes, but you can’t make a great wine from bad grapes. The same is absolutely true for tequila,” contends Ed Brown, importer of Patrón Tequila. “Making a great tequila begins with mature, hand-cultivated agaves grown under optimum conditions. It’s expensive to keep the plants in the ground for the 8-12 years it takes them to reach maturity, which is why many companies harvest early. Only mature agaves though can produce a genuinely flavorful, exuberant tequila.”

Like most commodities, the microclimate in which the agave is grown greatly affects the finished product. Related to the aloe, the agave thrives in rich volcanic soil and a warm and dry climate. Premiere tequila distillers cultivate and hand-select their agaves to ensure the highest degree of quality. The blue agaves used to make Jose Cuervo, for example, are grown in the foothills near the town of Tequila. El Tesoro cultivates its agaves in the high altitude of the Los Altos Mountains in Jalisco.

After harvesting, the agave cores are split into quarters and then baked to convert the plant’s natural starches into fermentable sugars. The traditional method of baking agaves is in a large stone oven called an hornos. This slow process ensures that the agaves are properly cooked and that the sugars don’t caramelize.

While baking agaves in stone ovens is time and labor-intensive, the process is thought to yield the best results. In an effort to reduce costs and speed up production, some brands use stainless steel autoclaves to pressure-cook the agaves. While faster, these huge autoclaves often fail to properly hydrolyze the starches and don’t totally convert the starches into sugars.

After baking, the agaves are then removed from the oven and taken to a crusher to extract the juice. The juice—called aguamiel—is separated from the crushed fibers and transferred to a large fermentation tank. Water and yeast are added to the tank to start fermentation, a process that takes approximately 72-96 hours.

The premiere distilleries precipitate fermentation using wild, airborne yeast. While these yeasts take longer to bring about fermentation, they lend an intriguing flavor to the tequila. Some producers use artificially prepared yeasts, or yeast nutrients called accelerators that are designed to speed up fermentation, reducing the process down to a mere 36 hours.
The size, volume and exact shape of the still play a role in how the finished tequila will taste. “Distilling tequila in traditional alembic stills produces a much more flavorful spirit,” states Henry Preiss, importer of Chinaco Tequila. “Chinaco produces 100% agave tequilas in hand-tooled, copper alembic stills because they deliver more flavor. While distilling in alembic stills is a slow, laborious process, making 100% agave tequilas isn’t something that can be rushed.”

By law, tequila must be double distilled. When it leaves the still, the tequila is as clear as water. It is transferred into a holding tank, typically for less than 24 hours. At this point, some of the tequila is sent on to be aged in oak, with the remainder being bottled as blanco or plata (silver) tequila.

“Aging tequila is a masterful skill, one that’s more art than science. It requires many years and an exceptionally keen palate to do it really well,” says Aaron Brost, Jim Beam Marketing Director, importer of popular El Tesoro. “El Tesoro tequilas are aged in 180-liter oak bourbon barrels. The smaller barrels allow for greater quality control and impart more wood character to the tequila.”

Reposado (rested) tequila is aged in wood for a minimum of two months, although most remain in the wood four to eight months. Añejo tequila legally must be aged a minimum of one year in barrels 600 liters or smaller. Most añejo tequilas are aged in oak barrels that have previously been used to age bourbon. Used barrels impart less tannin into the tequila and imbue the spirit with a subtle whiskey character.

The production of 100% agave tequilas is closely scrutinized by the government to ensure that stringent quality standards are strictly maintained. Seals are affixed to the opening of the barrels to certify when the tequila was barreled and to guarantee that nothing is added to the tequila as it ages.

What's in Store for Tequila

Nothing breeds success like success and tequila continues to be an impressive success story. From humble beginnings it has grown into a major international export and a vibrant sector of the spirits industry in the United States.

There are four major trends shaping the tequila category, the first of which is the continuing debut of super-premium brands. In 2005, four new brands grabbed center stage.

Bacardi top-shelf entry is Corzo, a line of 100% agave tequilas made “from the hearts of the hearts.” Produced by veteran distiller Cazadores, the elegant new range includes a silver and reposado, with plans to launch an añejo this year. Packaged in an award-wining bottle, the Corzo brand seems fast-tracked for success.

Brainchild of tequila maestro Felipe Soto Mares, super-premium El Duende de Don Felipe is an elegant range of 100% agave tequilas that includes a silver, reposado and añejo. The Del Duende Añejo Reserva deservedly attracting considerable attention. The three-year tequila has a medium-weight, silky body and is brimming with spicy, oaky flavors.

Introduced by Blavod Extreme Spirits USA, El Diamante del Cielo Añejo is a limited release, 100% agave tequila. It has a deep, rich hue, vivacious bouquet and a long lasting, flavor imbued finish.

Rounding out the Class of 2005 is super-premium Partida Tequila, a range of 100% agave tequilas that includes an unaged silver, a reposado aged 6 months in French Canadian oak and the Partida Añejo, which matures a minimum of 18 months in charred oak barrels. The agaves used in the spirits production are cultivated on the Partida 5,000-acre estate outside of Amatitán. The highly rated tequila is in wide distribution.

“Another easily perceived trend within the industry is the growing demand for premium mixto tequilas, the term for tequilas that contain less than 100% agave,” says David Ravandi. In addition to being the importer of super-premium 100% agave tequila Casa Noble Tequila, he also imports recently released XXX Siglo Treinta a mixto brand of tequila rapidly rising in sales. Made at La Cofradia Distillery, XXX Siglo Treinta is double distilled from mature agaves and blended with high-grade distilled sugar. It is then aged for two months in small, American white oak barrels. The 80-proof spirit is praiseworthy, especially considering its low price of $15 per 750ml.

No distillery is more adept at blending tequila than José Cuervo. Last year they successfully launched José Cuervo Clásico, a blend of unaged tequilas and specially selected Cuervo tequilas mellowed in oak barrels. The aged tequilas are used to mellow the natural exuberance of the young silver spirits. Despite its apparent simplicity, Clásico is a complex and appealing tequila.

The tequila giant has recently introduced José Cuervo Black Medallion, a signature blend of Cuervo tequilas aged in charred oak barrels for 12-months. Jose Cuervo Black is imbued with boatloads of flavor, which makes it ideally suited for today’s cocktail culture. It’s a spirit with grace and exuberance, a rare combination for a modestly priced spirit.

The third unmistakable trend within the tequila industry is the booming growth of what are now known as “ultra-premium” brands. Newly created category by the CRT regulatory agency, the designation will undoubtedly feed the consumers’ appetite for older, more elite designations of tequila.

There are already a few notable ultra-premium brands gracing the country’s top-shelves. Reserva de la Familia de José Cuervo is a limited edition, vintage-dated añejo. As the name implies, the 100% agave tequila was once the private domain of Jose Cuervo and his descendants. Reserva De La Familia blend is comprised of tequilas aged in both new charred French and American oak barrels.

Priced at around $250 per 750ml, ultra-premium Herradura Seleccióon Suprema is aged a minimum of 4 years in small, white oak barrels. It was initially released to commemorate the company’s 125th anniversary. Production of Selección Suprema is limited to less than 2000 bottles a year.

In October 2004, master distiller German Gonzalez released limited edition Chinaco's 30th Anniversary. The offering was barrel aged seven years before in anticipation of the event. Only 900 bottles of the Chinaco 30th Anniversary were made available in the United States, each carrying a retail price of $325.

Two relative newcomers to the ultra-premium category include Gran Patrón Platinum, a triple-distilled, 100% agave tequila. A portion of each small batch is aged briefly in oak barrels prior to being blended back. This distinguished silver tequila carries a retail price of $160 per 750ml. Crafted at Tres Magueyes ultra-premium Don Julio 1942 is an añejo aged in oak for a minimum of 3 years.

Tony Pujala, senior marketing manager for Corzo and Cazadores tequila, believes that the category will continue its strong growth for the foreseeable future, especially in upper echelon labels. “Consumers are showing sustained interest in luxurious, high quality spirits. All indicators point to continued strong demand in high-ticket tequilas.”

The last of the major trends is the influx of flavored tequilas. Again, another regulation change now permits distilleries to bottle the tequilas with added flavors. In anticipation, Heaven Hill is launching Two Fingers Lime Flavored Tequila and Two Fingers Berry Flavored Tequila.

“Naturally the challenge is marrying a tequila with a complimentary flavor, which is not an easy task. Unlike vodka or rum, tequila has a pronounced flavor. That being said, I’ve tasted some flavor combinations that were marvelous,” states Del Duende’s Mares. “The potential upside for producers is huge. Capturing a portion of the flavored vodka and flavored rum market represents a huge opportunity for the tequila industry.”

Ron Ng is the vice president of marketing for Infinium Spirits, formerly Wilson Daniels and the importer of Cabo Wabo Tequila. “I think it is too early to tell if flavor tequilas will do well in the marketplace. If they are successful, it will most likely be in the premium segment of the category and retail in the $13.00 to 17.00 per 750ml range. I anticipate it will follow the model established in the vodka category.”

As for other trends, it’s highly likely that we will soon see increasingly more special bottlings of vintage delineated tequilas, more creative wood finishes and single estate bottlings of single cask tequilas. These are exciting times for the tequila industry. With costs now stabilized and consumer demand surging ever higher, prospects for retailers of tequila is once again primed for success.

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