Shaking Up Tequila Transparency as New Additive Rules Take Effect

For tequila lovers who crave a pure, authentic experience, knowing what’s in each bottle is key. But a recent regulatory change in Mexico is making it harder for consumers to tell whether their tequila contains additives. Earlier this month, the Consejo Regulador de Tequila (CRT), the Mexican authority that oversees tequila production, issued new rules that restrict brands from using terms like “additive-free” in their labeling and marketing. This unexpected move is sending ripples through the industry, especially for small producers and advocates of transparency.

On September 30, 2024, the CRT sent letters to several tequila brands, warning them against using “additive-free” language on bottles or in promotional materials. The consequences for not complying were severe: brands could face product seizures or other penalties. The CRT even took it a step further, stating that brands might also be held accountable for any “additive-free” descriptions on third-party websites. In response, Tequila Matchmaker, a popular app among tequila enthusiasts, quickly removed all “additive-free” designations to protect producers from potential penalties.

The New CRT Regulations:

• Ban on “Additive-Free” Claims: Brands are prohibited from using terms like “additive-free” on labels or in marketing.

• Third-Party Accountability: Brands may be held responsible if third-party websites promote them as additive-free.

• Risk of Product Seizures: Non-compliance could lead to confiscation of products or other punitive actions.

The timing of these letters was also noteworthy. They were sent late on a Friday, right before a new Mexican government was set to take office, leaving recipients with little chance to clarify the sudden change. For some small producers, this caused production delays and frustration. Yéyo Tequila, one of the brands affected, was in the middle of bottling when they received the news. “This recent action by the CRT just further reinforces, in my mind, their vendetta against smaller brands,” says Yéyo’s CEO, Liran Reingold. “The small brands that use additive-free methods are the ones getting affected by this.” The crackdown led to delays as Yéyo had to meet the new labeling demands, even on language previously approved by the CRT.

This wasn’t an isolated case. Mijenta Tequila, a B Corp certified and additive-free producer, also had to adjust its labels after the CRT suddenly prohibited previously approved language. Rather than destroying the entire batch of labels, Mijenta opted to cover the non-compliant phrases with stickers—a costly and time-consuming workaround. Many feel that these rule changes disproportionately impact smaller producers who emphasize traditional, additive-free methods.

Critics argue that the recent regulations favor large tequila producers who rely on additives to achieve certain flavor profiles and textures. By Mexican law, additives can make up to 1% of a tequila’s volume. This means brands can use ingredients like aspartame, caramel coloring, or oak extract and still label their product as “100% agave.” Smaller producers, who often proudly promote their additive-free methods, now face limitations on sharing their commitment to purity.

This shift could have a big impact on the tequila category in the spirits industry. As the demand for premium, craft tequilas continues to grow, CRT’s restrictions on additive-free labeling may narrow consumer choices. Brands that have built their reputation on authenticity and natural production methods may struggle to communicate their values to consumers. The limitations could also slow the momentum of additive-free tequilas that have been fueling the premium segment’s growth. If smaller brands can’t differentiate their products, the diversity and quality that have elevated tequila’s status globally could be at risk.

But consumer interest in transparency isn’t likely to disappear. Some additive-free brands are growing up to 20 times faster than their larger, additive-using competitors. With brands like Casamigos reporting declining sales, some industry insiders speculate that major producers may be encouraging the CRT’s restrictions to limit smaller competitors. Ironically, the CRT’s efforts to silence the “additive-free” conversation may be having the opposite effect—drawing even more attention to additives in tequila and boosting interest among curious consumers.

This tension between transparency advocates and the CRT has been brewing for some time. Earlier this year, the CRT certified Patrón as an additive-free brand under its newly introduced additive-free certification program, only to abandon the program shortly afterward. The conflict escalated in March when the CRT filed a criminal complaint against Tequila Matchmaker’s founders, Grover and Scarlet Sanschagrin, accusing them of operating an illegal tequila production facility from their home. Mexican authorities raided the Sanschagrins’ Guadalajara home, and the couple has since relocated to the U.S. as the legal proceedings continue.

Despite the CRT’s efforts, industry experts believe that consumer interest in additive-free tequila will only continue to grow. The recent crackdown has sparked calls for alternative certifying bodies that could verify additive-free claims independently of the CRT. Two applications for such certifiers are currently under review by Mexico’s Secretariat of Economy. If approved, these new authorities would allow producers to certify their additive-free status without interference from the CRT, offering an opportunity for transparency-focused brands to stand out.

For small producers and transparency advocates, this shift represents a potential win. A competitive certification process could make it easier for additive-free tequilas to reach consumers who are increasingly thirsty for authenticity. As Adam Millman, CEO of De Nada Tequila, puts it, “I have a sense of optimism in the long run. I just think that the additive-free movement has become too much of a thing for it to completely go away.”

While the future of additive-free tequila remains uncertain, one thing is clear: both consumers and producers are pushing for greater transparency. As tequila lovers continue to seek out brands that reflect traditional, natural production methods, the demand for honest labeling will likely shape the industry for years to come. With potential new certifying bodies on the horizon, the conversation about additives in tequila is just getting started.