Tequila can only be produced in Mexico and must comply with strict Mexican Government regulations. In order to satisfy an ever-growing demand and a multitude of consumer's preferences and tastes, tequila is produced in two  general categories and four different types in each category. The two categories  are defined by the percentage of juices coming from the blue agave:

• Tequila 100% Agave. Must be made with 100% blue agave juices and must be bottled at the distillery in Mexico.
• Tequila (Ordinary Tequila). Must be  made with at least 51% blue agave juices. This tequila may be exported in bulk to be bottled in other countries following the NOM standard.

The NOM  standard defines four types of tequila:

Blanco
Clear, fresh from the still tequila is called Blanco (white or silver). It has the true bouquet and flavor of the blue agave. It is usually strong and is traditionally  enjoyed in a "caballito" (2 oz small glass). This is the traditional tequila  that started it all.

Joven or Abocado
Joven or young is  Tequila Blanco mellowed by the addition of colorings and flavorings, caramel  being the most common. It is also known as Extra or Gold. It is the tequila of  choice for Margaritas.

Reposado
Reposado or rested is Tequila  Blanco that has been kept in white oak casks or vats called "pipones" for more  than two months and up to one year. The oak barrels give Reposado a mellowed  taste, pleasing bouquet, and its pale color. Reposados keep the blue agave taste and are gentler to the palate. These tequilas have experienced exponential  demand and high prices.

Añejo
Añejo is Tequila Blanco aged in  white oak casks for more than a year. Maximum capacity of the casks should not exceed 600 liters (159 gallons). The amber color and woody flavor are picked up from the oak, and the oxidation that takes place through the porous wood  develops the unique bouquet and taste. Some Añejos are aged for several years  and enter into the big leagues of liquor both in taste and in price.