Tequila in Mexico", except that it may be diluted with water for bottling in Canada. Similar to the law of Canada, the U.S. law (27 CFR 5.22 (g)) says that tequila must be "manufactured in Mexico in compliance with the laws of Mexico regulating the manufacture of Tequila for consumption in that country". Tequila Tequila () is a regional distilled beverage and type of alcoholic drink made from the blue agave plant, primarily in the area surrounding the city of Tequila, northwest of Guadalajara, and in the Jaliscan Highlands ("Los Altos de Jalisco") of the central western Mexican state of Jalisco.
Tequila Herradura Part of the legal problems stemmed from the sale of shares to non-Mexican entities. In 2004, Herradura bought back foreign owned shares, making the company 100% Mexican owned again. At this time, the company controlled thirty percent of the Mexican tequila markets behind Jose Cuervo’s forty percent share. However, in 2007 all assets of the company were sold for $USD 776 million to the US-based company Brown-Forman, which produces other alcoholic beverages such as Jack Daniel's, Southern Comfort, Finlandia Vodka and Korbel California Champagne. That same year Herradura was named "best distillery of 2007" by Wine Enthusiast Magazine . Since