15 Best Inexpensive Tequilas Under $40 that Don’t Taste Bad
In this article, we are going to discuss the 15 best inexpensive tequilas under $40 that don’t taste bad. You can skip our detailed analysis of the global tequila market, the recent investment in tequila by a spirits giant, and sustainability in the tequila industry, and go directly to 5 Best Inexpensive Tequilas Under $40 that Don't Taste Bad.
As a symbol of national pride, tequila represents a celebration of Mexico's rich culture. Although it has had a rocky history in the North American country, the spirit was granted legal status as early as 1944, when the Mexican government decided that any product labeled as ‘tequila’ must be made by distilling agave in Jalisco. These standards were laid out between 1944-1947, and they have been revised and upgraded since then. In 1978, tequila became the first Mexican product to receive an Appellation of Origin – a denomination that includes protected production areas, within the state of Jalisco, and limited municipalities in the states of Guanajuato, Michoacán, Nayarit, and Tamaulipas. To be classified as tequila, the liquor is required to have a minimum of 51% Blue Weber Agave in its composition, and must be bottled between 35% - 55% ABV.
Global Tequila Market:
Tequila is one of the Most Consumed Alcohols in the World. The global market of the popular liquor was valued at $14.7 billion in 2022, and is expected to reach $30.3 billion by 2028, with a CAGR of 12.3% during the forecast period. The growth in popularity of tequila can be attributed to a number of factors, including the expansion of the premium spirits market, the introduction of new flavors, and a greater social media presence.
Tequila's popularity has been on the rise in the United States for years, and in 2021, it even surpassed whiskey in retail sales, making it the country’s second best-selling spirit behind vodka. According to the Distilled Spirits Council of the United States, tequila and mezcal revenue rose to $6 billion in 2022, an increase of 17.2% from the previous year.
As we mentioned in our article – 20 Best Cheap Tequilas Under $50 for 2024 – 2022 was a record year for Mexico’s tequila exports, amounting to $3.6 billion between January and October – a 34.1% jump year-over-year. The tequila industry also attracts hordes of tourists to Jalisco each year, contributing hundreds of millions of dollars to the local economy and supporting over 70,000 jobs
Recent Investment in Tequila:
The Brown-Forman Corporation (NYSE:BF-B) announced in 2023 that it was investing approximately $200 million to expand its Casa Herradura tequila distillery in Jalisco, Mexico. The expansion will allow the Jack Daniel’s maker to meet the increasing global demand for its premium tequilas.
The first phase will expand the water recycling and treatment plant, followed by the expansion of capacity for distilling, bottling, maturation, and processing. The Kentucky-based Brown-Forman champions Casa Herradura as having been a pioneer in establishing a water recycling and treatment plant that met government standards, while it is also one of the spirits giant’s zero waste to landfill sites.
Casa Herradura, one of Mexico's most historic and renowned tequila producers, was acquired by the Brown-Forman Corporation (NYSE:BF-B) in 2007. The company has been harvesting, producing, and estate bottling tequilas from the small town of Amatitán in Jalisco, since 1870.
The Brown-Forman Corporation (NYSE:BF-B) is placed among the Largest Alcohol Companies in the World in 2023.
Sustainability in the Tequila Industry:
The modern consumer has become increasingly aware of the climate emergency we unfortunately find ourselves in, and actively seeks out sustainable brands, even if it means paying extra. So, as tequila makers find themselves in an increasingly competitive market, committing psychologically and economically to reducing their impact on the planet may also be the only means to make their businesses sustainable in the long run.
Several tequila brands have incorporated a number of green initiatives into their supply chains to reduce their impact on the environment. It was announced last year that the Japanese spirit giant Beam Suntory Inc. has initiated a pilot program that aims to achieve net zero carbon emissions for its Casa Sauza tequila brand by 2030. The Jim Beam-owner plans to introduce plants that absorb carbon during the day in between rows of agave, which naturally absorb carbon during the night. The company says that the program could capture more than 36,800 tons of carbon per year if pulled off successfully. At Beam Suntory’s La Alteña Distillery, master distiller Carlos Camarena has also spearheaded the Bat‐Friendly Tequila Project to increase the natural resistance of the Blue Weber agave species against the threat of disease.
Similarly, in 2021, Diageo plc (NYSE:DEO)’s Don Julio Tequila became the first brand to receive the Environmentally Responsible Agave (ARA) Certification from the Tequila Regulatory Council (CRT) and the Government of the State of Jalisco. The ARA certification’s purpose is to assure consumers that the tequila they are drinking has been manufactured in an environmentally responsible and sustainable manner with no deforestation in the production process.
Moreover, Diageo plc (NYSE:DEO) has also established the Tequila Don Julio Fund, with a commitment of $1 million over the next four years to approved charities that support the communities that have helped build the iconic spirit into one of the Most Renowned Tequila Brands in the World. The Guinness-owner is also making efforts to actively involve more women in the otherwise male-dominated tequila sector, particularly in areas where they have been historically under-represented, like farming, engineering, and science. Today, 18% of the positions in Diageo’s tequila agriculture operations are occupied by women. This is all in line with the company’s Society 2030: Spirit of Progress plan that promotes sustainability from grain to glass.
Diageo plc (NYSE:DEO) is counted among the Best Alcohol Stocks to Own According to Hedge Funds.
With that said, here are the Best Tasting Tequilas Under $40.
Igor Normann/Shutterstock.com
Methodology:
To collect data for this article, we referred to a number of sources, such as Liquor, VinePair, Men’s Journal, related Reddit threads etc., looking for the Best Tequilas Under $40. To make sure we give you only the best of the best, we picked tequilas that appeared multiple times in the aforementioned sources, assigned them a score based on their number of appearances, and ranked them accordingly. When two or more tequilas had the same score, we ranked them by the price (excluding tax) of their 750 ml bottles.
Note: Prices have been sourced primarily from Wine-Searcher. As liquor prices can vary greatly across the United States, we cannot guarantee their accuracy.
By the way, Insider Monkey is an investing website that tracks the movements of corporate insiders and hedge funds. By using a similar consensus approach, we identify the best stock picks of more than 900 hedge funds investing in US stocks. The top 10 consensus stock picks of hedge funds outperformed the S&P 500 Index by more than 140 percentage points over the last 10 years (see the details here). Whether you are a beginner investor or professional one looking for the best stocks to buy, you can benefit from the wisdom of hedge funds and corporate insiders.
15. Cazadores Blanco
Insider Monkey Score: 3
Price: $24
Cazadores Blanco is tequila in its purest form, without aging, allowing the intensity and real flavors of agave to stand out. With its distinct, herbaceous, and slightly sweet taste, the Cazadores Blanco Tequila is one of the Best Cheap Tequilas for Shots.
One of the oldest and highest quality tequila brands worldwide, Cazadores is made from 100% Blue Agave, requiring a fully sustainable and zero-waste seven-step production process overseen and crafted by a Maestro Tequilero. The brand was acquired by Bacardi Limited in 2002.
14. Lunazul Añejo
Insider Monkey Score: 4
Price: $29
Expertly aged in ex-Bourbon barrels for 12 to 18 months, the Lunazul Anejo tequila offers a bold and robust sipping experience. Made from 100% agave, this expression is full-bodied and subtly sweet with hints of pepper.
One of the Most Popular Tequila Brands In The World, Lunazul is distilled and bottled with 100% Blue Agave at the Tierra de Agaves Distillery in Tequila, Jalisco. A nationally distributed brand, Lunazul was founded by Francisco Beckmann, a seventh generation descendent of the Cuervo-Beckmann family, the oldest dynasty of tequila producers.
13. Olmeca Altos Reposado
Insider Monkey Score: 4
Price: $28
The perfect drink to kick back and relax, Altos Reposado is made from 100% Blue Agave grown in the state of Jalisco, and is aged for six to eight months in barrels once used for whiskey, adding a unique flavor to every sip.
Olmeca Altos Reposado is one of the Best Tequilas Under $40 on Reddit.
12. Familia Camarena Reposado
Insider Monkey Score: 5
Price: $23
Aged in oak barrels for 60 days, this award-winning tequila is soft and smooth on the palate imparting flavors of vanilla and caramel. The 100% Blue Agave Camarena Reposado tequila rests in American oak barrels for 60 days before bottling.
It was recently announced that Familia Camarena has formed a partnership with Confederation of North, Central America, and Caribbean Association of Football (Concacaf) as the official tequila of the 2024 and 2025 Concacaf Champions Cup, a revamped version of the region’s premier club championship that kicked off on February 6th.
11. Pueblo Viejo Reposado
Insider Monkey Score: 5
Price: $20
Pueblo Viejo has been crafted with love and dedication since 1886, combining time-honored techniques with innovative advancements to create a truly exceptional spirit. Aged for at least eleven months in oak, the Pueblo Viejo Reposado is a sweet and smooth tasting tequila – a great option for people looking for the Best Tequilas Under $30.
10. Espolòn Blanco
Insider Monkey Score: 6
Price: $29
Created in the highlands of Jalisco as a tequila for the people, Espolon Tequila Blanco is inspired by and a tribute to Mexican culture. Handcrafted with 100% Blue Weber Agave, the liquor is double distilled using column and pot stills to give it a smooth and balanced taste profile.
Owned by the Campari Group, Espolòn is one of the Most Popular Tequilas Under $40, boasting sales of 1.1 million 9-liter cases in 2022, an increase of 19.8% from the previous year.
9. El Jimador Tequila Silver
Insider Monkey Score: 6
Price: $26
Young and fresh, El Jimador Silver tequila steps up with truly authentic character. It’s made with 100% hand-harvested Blue Weber agave and double distilled with sparkling clarity.
Part of The Brown-Forman Corporation since 2007, El Jimador Tequila is crafted using 100% Blue Agave and fermented naturally with wild yeast produced by the fruit trees and agave plants surrounding the distillery. El Jimador achieved global sales of 1.7 million 9-liter cases in 2022.
El Jimador Silver is included among the Best Cheap Tequilas Under $50 According to Reddit.
8. Suerte Blanco
Insider Monkey Score: 7
Price: $33
Produced from 100% Tahona crushed Blue Weber Agave, Suerte Blanco is rested for a minimum of two months in stainless steel tanks prior to bottling. This remarkable tequila has been carefully handcrafted to appeal to today's modern drinker while maintaining a high level of authenticity.
In December 2023, Suerte Tequila announced the expanded distribution of its new canned cocktail collection featuring 100% pure Blue Weber Agave tequila, bringing the same quality and craftsmanship to its cans as it does to its bottles.
7. Espolòn Reposado
Insider Monkey Score: 7
Price: $31
Made from 100% Blue Weber agave, this tequila starts off life as Blanco, and is then rested in lightly charred, new American oak barrels to create a more complex and well-rounded character unique to Espolòn.
Espolòn produces tequila from 100% Blue Weber Agave grown in the ‘Golden Triangle’ in Jalisco’s Los Altos highlands. In 2022, the brand also launched Espolòn Cristalino - a super-premium, aged tequila and one of the last passion projects of the legendary Maestro Tequilero Cirilo Oropeza before his passing in 2020.
6. Tres Agaves Blanco
Insider Monkey Score: 9
Price: $32
Bottled as soon as it is distilled, Tres Agaves Blanco Tequila is sourced from 100% organic agave that's grown in the Tequila Valley and slowly roasted to perfection. This award-winning tequila earned 92 Points from the Ultimate Spirits Competition and the title of Best Tequila for Margaritas at the Ultimate Cocktail Competition.
Tres Agaves is an organic line of tequilas and mixers that was founded by Barry Augus in 2008. Its range includes Margarita, Bloody Mary, and agave nectar cocktail mixers, as well as ready-to-drink cocktails and several tequilas. The brand was acquired by Trinchero Family Estates in 2020.
Being pure, unaged, and of such high quality at this price point, the Tres Agaves Blanco sits among the Cleanest Tasting Cheap Tequilas in 2024.
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Disclosure: None. 15 Best Inexpensive Tequilas Under $40 that Don't Taste Bad is originally published on Insider Monkey.
