Tequila is made from the roasted heart of a blue agave, a succulent plant (not a cactus) that grows in Mexico. Virtually all tequilas are made in the state of Jalisco. Cultivated for over 9,000 years, the natives use agave to make pulque, a beer-strength drink still made by clandestinos (moonshiners) all over Mexico. In the late 1500s, the Spanish Conquistadors took the pulque and distilled it into tequila. Today, the Mexican government closely supervises the production of tequila.

A manufacturer can call the product “tequila” if it is made from 51% blue agave. In this case, the rest of the product is usually made from cane sugar and the result is known in the industry as “mixto.” These are the cheapest tequilas. Contrary to general belief, most gold tequilas are “mixtos” with some food coloring or caramel added. They are most definitely not premium tequilas. The next step up is tequila which will clearly say “100% blue agave” on the bottle.

There are three ages for tequila. The first is blanco. Either bottled directly from the still or aged for a month or two in stainless steel, these are the lowest rung in the realm of premium tequila. And the perfect margarita tequila. The flavor is bright, robust, and strong, aromatic of blue agave. Next up is “reposado” (rested) which spends two to 12 months resting in old American whiskey barrels. The leaching of the oak into the tequila is what makes reposada darker than blanco. Anejo stays in the whiskey barrels from one to seven years. This storage is what drives up the prices of these tequilas, and also what gives them their characteristic mellow and subtle flavor. It is an absolute waste of art and money to use anejo tequila in a margarita.

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Wes Marshall is the author of What's a Wine Lover To Do? (Artisan) and The Wine Roads of Texas (Maverick), as well as the Executive Producer of the PBS television series of the same name. Wes has written for The Austin Chronicle since 1999, covering wine, cocktails, food, and travel.