Tequila shortage projected

Liquor makers face new controls

Tequila is derived from the silvery-blue agave cactus

July 21, 2000
Web posted at: 1:48 p.m. EDT (1748 GMT)

From CNN Correspondent Harris Whitbeck

TEQUILA, Mexico (CNN) -- Guard your margaritas, boys, the tequila's gettin' scarce.

In the past five years, tequila has grown in popularity to the extent that supply cannot keep up with demand. Last year alone, nearly 52 million gallons of the drink were sold worldwide.

Alberto Curis, the head of Mexico's Chamber of Tequila Producers, said demand has exceeded all projections.

Because tequila production depends on one plant -- the silvery-blue agave cactus -- and because that cactus grows only in the Mexican state of Jalisco, increased demand has wreaked havoc on farmers' fields.

Agave grower Angel Gonzalez said a shortage is inevitable. The cost of new agave plants is expected to rise, but growers like Gonzalez also see opportunity in the situation.

	VIDEO
CNN's Harris Whitbeck takes a look at causes behind rising tequila prices Play video (QuickTime, Real or Windows Media)

"It is making us stronger," said Gonzalez.

It also is increasing industry regulation on the liquor's production and availability.

Agave growers soon will be issued "smart cards" that can be read by a central computer in the capital city of Guadalajara. The cards will help industry authorities to monitor usage of the plant, and estimate how many of the agave remain available.

The controls also are designed to keep tequila counterfeiters from being able to market their products, made outside the tequila region, as authentic.

Tequila producers hope that cooperation between Agave growers and distillers will protect the product's value, which is projected to soar along with demand.

Should you put that margarita in a bank vault? Not yet, maybe.

But you can expect to pay more for it.

Tequila Town

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