The Risks of Investing in Tequila Barrels: What Every Investor Should Know

Tequila barrels are attracting growing attention as an alternative asset. Like any investment, they come with risks, and understanding them is the first step towards deciding whether they suit your portfolio. This guide sets out the main risks plainly, alongside the ways they can be managed.

In this article:

1. Is tequila a good investment?

2. How we approach these risks

3. Why risk matters as much as return

4. The main risks at a glance

5. Risks to your capital

6. Risks of the asset class and its structure

7. Risks in the market

8. Risks around your provider, law and tax

9. Questions to ask before you invest

10. Weighing it up

Is tequila a good investment?

Tequila can be a good investment for patient investors who can commit money for at least three years and accept the risks. Aged tequila moves up in value as it matures towards Extra Añejo, but returns are not guaranteed, barrels are illiquid, and physical spirits are not a regulated investment in the UK.

Why some investors see potential

• Supply is slow to respond. Premium tequila is made only in a protected region of Mexico from 100% Blue Weber agave, a plant that takes 6 to 8 years to grow and mature.

• Time adds value in the barrel. Tequila moves up the price ladder as it ages, from blanco through reposado and añejo to extra añejo. Ageing stops once it is bottled, so the appreciation happens in the cask. In our research, Don Julio's range runs from £36 for its blanco to £285 for its extra añejo, a 7.9× step from youngest to oldest.

• The mix is shifting to premium. So far in 2026, 74.1% of tequila production has been 100% agave, a higher share than in any full year on record, according to the Consejo Regulador del Tequila.

• Return potential. Historic data from comparable aged tequila assets, reviewed by WineFi, indicates potential net annualised returns of 15–35%. This is not a guaranteed return or forecast; actual performance depends on market conditions, demand, pricing and the exit route available at the point of sale.

Why it may not be right for you

• Your capital is at risk. Values can fall as well as rise, and no one can lock in a future sale price.

• It is illiquid. There is no exchange for tequila barrels. We recommend holding for at least three years, and selling depends on finding a buyer at the time. If we broker your sale, we charge a 15% commission on exit.

• The wider market faces headwinds. Agave planting has risen sharply after the price spikes of the early 2020s: Mexico's planted area at the end of 2025 was 29.6% up on 2024 and more than twice 2022 levels. Roughly 81% of Mexico's tequila exports go to the US, so trade policy there matters.

• It is not FCA-regulated. Buying physical spirits is unlikely to be covered by the FSCS or the Financial Ombudsman Service.

• Your barrel is held overseas. Barrels are stored in a CRT-authorised warehouse in Mexico and insured against fire, theft and accidental damage, but normal evaporation (the "angel's share") is not an insurable loss.

The short answer

Tequila barrels may suit investors who understand these risks, can leave their money invested for the medium to long term, and want a small allocation to a real asset alongside their core portfolio. They are less suited to anyone who may need the money back quickly. The sections below explain each risk in more detail, and Weighing it up sets out who it may and may not suit. To see how the tequila market compares with whisky's, read Tequila: where whisky was 10 years ago.

How we approach these risks

Every risk in this article is one we take seriously at WineFi. We believe investors are best served by clear, honest information, which is why we put real effort into the safeguards that matter: official certificates evidencing the tequila you hold, insurance covering your barrels while they are in storage, and transparent reporting so you always know where your investment stands.

No investment is risk-free, and capital is at risk, but you should never have to take a provider's word for it. If you would like to understand how these protections work in practice, or talk through whether tequila barrels suit your circumstances, contact our team of advisors and we will be happy to help.

Why risk matters as much as return

If you are new to the idea, our guide to how tequila barrel investment works explains the basics, and our article on what makes a tequila barrel valuable covers the drivers of value.

Here we look at the other side of the ledger. Understanding what could go wrong helps you size an investment sensibly and ask better questions of any provider.

The main risks at a glance

Risks to your capital

Capital at risk

Any illustrated return is just that: an illustration. The value of a barrel can go down as well as up, so you may not get back everything you put in.

Worth remembering: be wary of anyone who presents returns as certain. Honest providers describe projections as projections.

Illiquidity and the holding period

Tequila barrels are not traded on an exchange. Even where a secondary market exists, exit opportunities are inherently uncertain, so it is sensible to treat a barrel as a medium- to long-term holding.

Expect a holding period of at least three years. You may be unable to realise a return before then. Money you might need at short notice should not go into this kind of asset. If you want the background, see our guides to extra añejo tequila and why extra añejo suits long-term holders.

Risks of the asset class and its structure

An unregulated asset class

In the UK, buying physical spirits is not an FCA-regulated activity. That has practical consequences:

• Protection from the Financial Services Compensation Scheme (FSCS) or the Financial Ombudsman Service is unlikely to apply.

• Even where a scheme did apply, it would not cover poor investment performance.

• The quality of the provider matters enormously, so due diligence is essential.

What this looks like in practice

The wider UK cask market has seen this gap discussed publicly, including advertising rulings that criticised firms for not making the unregulated status clear (VINetur).

What to look for

• Providers who state the unregulated status plainly up front

• Confirmation of exactly what you legally own

• A clear explanation of how ownership is recorded with the warehouse

Physical storage risks

The tequila is held in a government-approved warehouse in Mexico, the country where tequila is made, rather than in the UK. Storage in suitable conditions reduces risk, but it cannot remove it. Damage, fire, contamination and theft remain possible, and could result in a loss.

Why insurance matters

Check what is covered, who the policy is with, and how claims are handled.

What holding it overseas means in practice

You will not be able to inspect your barrels in person as easily as you could with a UK-based asset. That makes clear ownership records, regular reporting and independent confirmation of what is held in your name all the more important.

Risks in the market

Market conditions

Interest rates, consumer demand and general market volatility can all affect value, and past or perceived trends do not guarantee future performance. Tequila is a good illustration.

Supply has caught up with demand

Mexico's Tequila Regulatory Council reported 495.8 million litres produced in 2024, and output stayed near that level in 2025. Industry reporting describes distillers holding inventories close to a full year of production (VINetur).

Trade policy adds uncertainty

Possible tariffs on Mexican goods, including tequila, have been discussed, which could affect pricing in key export markets.

The premium end has been more resilient

The same reporting notes that ultra-premium tequila now accounts for 17% of volume, up from 6% in 2019. Aged, premium liquid is where many barrel investors focus, though that is no guarantee of future prices.

What this means for investors

The market is maturing. That can cut both ways, and it is a good reason to be selective about what you buy and who you buy it through.

Risks around your provider, law and tax

Reliance on your investment partner

Most barrel investors rely on a provider's relationships, market knowledge and operational capability to source, store and eventually sell their barrels. If that provider were to lose key people or cease to operate effectively, the prospects of your investment could suffer.

What to ask

• Who is on the team, and how long have they operated?

• Which relationships does the provider rely on?

• What happens to your barrels in a worst-case scenario?

Changes in law and tax

Laws and regulations can change, and a provider's failure to comply with them could affect your investment. Your personal capital gains tax position, and any tax benefits, may also change over time and will always depend on your individual circumstances.

Tip: take independent tax advice before investing.

Questions to ask before you invest

About ownership and storage

What exactly do I own, and how is that ownership evidenced and recorded?
Look for clear legal ownership of a specific, identifiable barrel, backed by documents rather than a vague share in a pool. At Tequila Reserve, you are the beneficial owner of your barrel. It carries a unique serial number registered with the Consejo Regulador del Tequila (CRT), and you receive a certificate of ownership. Legal title is held by WineFi Nominee Limited as a bare trustee on your behalf.

Where will the barrels be stored?
Aged tequila must stay in Mexico's authorised tequila-producing territory, in the custody of a licensed producer, to keep its legal status. Tequila Reserve barrels are held in bonded, climate-controlled warehouses in Jalisco, Mexico, under CRT oversight.

What insurance is in place, and what does it cover?
Check who holds the policy and which risks it covers. Tequila Reserve barrels are covered by the producer's warehouse insurance against fire, theft and accidental damage. Natural evaporation during ageing, the "angel's share", is an expected part of maturation and isn't insurable.

About returns and exit

What is the expected holding period, and what are the realistic exit routes?
Be wary of short holding periods or vague exit promises. Tequila Reserve recommends a minimum three-year hold, the time needed to reach extra añejo. After that, you can continue ageing, sell to a brand or independent bottler, sell privately, bottle under your own label, or have WineFi broker the sale. Every exit depends on market demand at the time.

Are projected returns clearly labelled as projections, with the assumptions explained?
Any return figure should say where it comes from and that it isn't guaranteed. Tequila Reserve quotes potential net annualised returns of 15–35%, based on historic data from comparable aged tequila assets reviewed by WineFi. This is not a guaranteed return or forecast, and actual results depend on market conditions and the exit route available.

What fees apply at purchase, during storage and on exit?
Ask for every fee in writing, including those charged after the initial period. At Tequila Reserve, the purchase price includes all fees, insurance and storage for the first three years. Later costs depend on your exit route and may include storage, bottling, shipping or a 15% commission if WineFi brokers the sale.

About the provider

What happens if the provider ceases to trade?
Your assets should be held separately from the provider's own. Tequila Reserve client barrels are ring-fenced from WineFi's operating assets and held by WineFi Nominee Limited for clients, so they would remain yours if WineFi ceased trading.

Weighing it up

None of these risks makes tequila barrels a poor choice for every investor. They are the trade-offs that come with an alternative, physical, unregulated asset.

Who it may suit

Investors who understand the risks, hold a diversified portfolio, can commit capital for the medium to long term and choose a transparent provider.

Who it may not suit

Anyone who needs quick access to their money or wants regulatory protection.

If in doubt, seek independent professional advice. Explore more in our Learn hub.