Jose Cuervo, the world’s top-selling tequila brand, is not a supporter of the additive-free campaign that has swept up the industry over the past couple of years.
“The additive-free movement is something that we believe, as it is today, something that is inaccurate and it’s probably damaging the category more than it’s helping,” Lander Otegui, senior vice president of marketing at Jose Cuervo producer and distributor Proximo Spirits, tells me during an in-person interview.
Some additives—including caramel coloring, glycerin, sugar-based syrups and oak extract—are permitted as long as they are less than 1% of the weight of tequila, according to the standards set by the Tequila Regulatory Council, or CRT.
Groups like the Additive Free Alliance (AFA) aim to band together tequila brands and retailers that support tequilas that are only made with three ingredients: 100% weber blue agave, water and yeast. The AFA says it isn’t against brands using additives in their production process, but says that the industry should embrace transparency. Craft tequila brands have been among the biggest proponents of additive free but big brands are also taking notice. Last month, Patrón debuted a new marketing campaign that lauded that brand’s commitment to additive-free tequila.
The CRT has refused to develop a testing process that would verify some tequilas as free of additives and allow those brands to market their products with that claim. This lack of clarity about ingredient usage in tequila runs counter to what consumers say they want. Three out of four shoppers say they prioritize ingredient transparency and two-thirds say they would switch brands to one that provides more in-depth product information beyond nutrition facts, according to a global report by the Food Industry Association and NielsenIQ.
Jose Cuervo Says Additives “Are Not Harmful”
Much of the controversy about additives stems from tequila’s soaring popularity. From 2002 through 2019, tequila’s volume increased 180%, an average of 6.2% per year, according to trade organization Distilled Spirits Council. Tequila and mezcal revenue totals $6.7 billion annually in the U.S. market, the second-most popular category after vodka.
But that growth has led some tequila producers to cut corners. Agave needs up to eight years in the ground before it is ready to harvest but some have been harvesting the crop after just a few years, which can result in a bitter flavor. Brands can mask that flavor by using artificial sweeteners.
Otegui says the conversation around additives is misguided because these ingredients are not only found in other spirits categories, including whiskey and rum, but many other food and beverage categories. “Additives are not harmful,” says Otegui, during our interview about additive-free tequilas at the Jersey City office of Proximo Spirits. “Tequila is the only one that is being challenged or targeted.”
Jose Cuervo uses additives in some expressions, including caramel coloring in Especial Gold, for a more desirable consistency that will allure shoppers. “You want to go to the shelf and you want to see that your product has the same consistent color every single time and the same flavor every single time,” he explains. Devil’s Reserve, a lower proof tequila that debuted in 2024, is also infused with “natural” flavors, though Proximo doesn’t disclose the full ingredient list.
He says the industry should stop infighting over additives and instead focus on bigger problems, including maintaining appropriate levels of agave plants and addressing rising demand for water. Some of Jose Cuervo’s sustainability initiatives include composting agave byproducts in the fields, the implementation of stillage treatments plants to process wastewater, and reusing agave fiber to create plastic alternatives including straws and cups.
Tequila’s Growth Has Cooled, But Category Has Room To Grow
The sales growth for tequila has slowed down over the past couple of years, a trend that producers like Jose Cuervo attribute to a reset after the COVID pandemic led to an artificial spike in demand for alcohol. Becle, the Mexican-based parent company of Proximo Spirits, in February reported that total volume declined by 6.2% in 2024 from the prior year, due to a double-digit drop in the highly competitive ready-to-drink category in the U.S. and Canada, and as distributors destocked liquor they had on hand.
Otegui struck a positive tone about tequila’s future growth prospects, noting that the industry has made inroads in European markets and still has a lot of growth potential in Asia. Within the U.S., market penetration is especially strong in states like California, Texas and Arizona, but tequila still has a lot more room to capture share from rival liquor categories outside those core markets.
“We still believe it is a category that can grow the next 10 to 20 years without seeing the slowdown that we are seeing in other categories,” says Otegui.