Until a decade ago, California agave plants were more likely to be found in a plush Santa Barbara garden than in a fertile San Joaquin field. But in the last few years, farmers have begun cultivating this drought-resistant plant, which is essential to the traditional production of tequila and mezcal, as a wave of entrepreneurs fuels the rise of the California agave spirits industry.

“I used to say we’re in our infancy,” said Craig Reynolds, the founding director of the California Agave Council, who first planted a crop of Blue Weber agave plants in Yolo County in 2014. “But I think we’ve moved to our toddler phase where we’re on our own two feet.”

Under a 2022 state law, certified California agave spirits — similar in taste but distinct from Mexican tequila and mezcal — must be grown, processed and distilled in-state, making it attractive to customers who value sustainability and local sourcing. For these growers and distillers, competing with Mexico is neither the future goal nor a current possibility.

Only agave spirits produced under authorized conditions from specific regions in Mexico are entitled to the nomenclature of “tequila” or “mezcal,” which are legal designations protected by denomination of origin, similar to regionally specific restrictions on French Champagne or Italian Parmesan. Tequila and mezcal products that qualify under the United States-Mexico-Canada Agreement are exempted from tariffs, according to Robert Tobiassen, president of the National Association of Beverage Importers.

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While other states like Texas and Arizona have entered the market, they pale in comparison to Mexico’s output. In 2024, Mexico exported almost 300 million bottles of tequila and mezcal globally — enough liquid to fill 160 Olympic size swimming pools — with 251 million bottles going to the United States alone.

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