Tequila's Happy Hour

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    The scarcity of Weber blue agave in Jalisco has meant that some distilleries have quietly augmented their supply with cheaper agave from the southern state of Oaxaca--outside the officially designated zone. Sales of Oaxacan agave to Jalisco have roughly doubled in the past year. Mexican regulators are trying to crack down on the rogue suppliers and buyers and have closed at least one distillery. The smuggling also threatens production of tequila's less tony cousin, mescal, made with unauthorized agave species or Weber blue grown outside the designated zone, by driving up Oaxacan agave prices 40%.

    Despite the agave crunch, tequila's popularity is likely to endure--another reason those caballitos are going to cost more. Elliot Lane, deputy editor of Drinks International Bulletin, a London liquor newsletter, expects prices to rise 30% to 60% in the next six months. So forget buying limes and salt--you'll be needing every penny for tequila.

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