Why Mezcal and Tequila Hold High Prices – and What’s Happening in Georgia

In recent years, mezcal and tequila have established themselves as premium segments in the global spirits market. Their prices are driven not only by high demand but also by the complexities of production. Tequila is made exclusively from blue agave grown in five states of Mexico, while mezcal is produced in a broader but still strictly defined geographical zone. Agave plants require 7 to 10 years to mature, meaning supply cannot respond quickly to demand. Moreover, recent climate changes and plant diseases have caused significant damage to agave crops.

The production process itself is labor-intensive: harvesting the agave heart (piña), steaming or baking it underground in the case of mezcal, lengthy fermentation, and then double or triple distillation — all require significant time and craftsmanship. Special editions of mezcal and tequila are often made in small batches, which automatically increases the per-unit cost.

Market demand is also being fueled by new consumer groups. In the United States, for example, tequila and mezcal are now considered direct competitors to whiskey, and premium tequila sales have grown by over 90% in the last five years. In such a landscape, a decline in prices is unlikely in the near future.

In Georgia, the import of tequila and mezcal is growing moderately, but the segment remains focused on higher-priced products. According to 2023 data, Georgia imported about USD 320,000 worth of tequila, an increase of 12.5% compared to the previous year. Mezcal imports reached around USD 40,000-50,000, but growing over years. 

Retail prices in Tbilisi remain high: a standard 0.7-liter bottle of tequila generally sells for between 90 and 160 GEL, while premium tequila and mezcal bottles often exceed 200–400 GEL. By comparison, whiskey of a similar category is on average 30–40% cheaper.

Another reason for the high prices in Georgia is import costs: both mezcal and tequila come from Mexico, adding transportation and customs expenses, especially in a market where volume demand is still relatively low.