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August 31, 2026

Oaxaca’s Mezcal Industry Faces Threats Amid Booming Popularity

In the remote hills of Oaxaca, southern Mexico, the distinct scent of roasted agave emanates from traditional wood-fired, stone ovens. This aroma signals success. In 2025, Mexico produced 7.7 million bottles of mezcal, marking significant growth compared to 2015. Visiting Santiago Matatlan reveals the journey of each bottle, from small stills in mountain towns to transport trucks heading 750 miles to the U.S. border.

Mexico faces threats from violent groups targeting the mezcal industry. The country ranks highest for violent, in-transit truck hijacking. Roadways from Oaxaca’s mountains through central Mexico are deemed high risk. In September 2024, armed robbers hijacked a Monte Alban mezcal shipment on the Mexico-Tuxpan highway. July 2025 saw a theft of 9,000 premium agave spirit bottles worth $1.3 million in Guanajuato. A truck with 64 tons of alcohol was taken by hijackers in Hidalgo.

Organized crime trends in Mexico include targeting food and beverages easily sold at informal markets. While Oaxaca is not yet a hijacking hotspot, mezcal shipments face risks moving north through regions like Puebla, Mexico State, Michoacan, and Jalisco. Analysts identify Puebla, pivotal for U.S.-bound mezcal, as the worst hijacking hotspot.

The collusion between local authorities and criminal groups in Puebla is hindering investigations into cargo theft.

Reliance Partners’ Mexico Cargo Truck Hijacking Data Portal reported over 79% of hijackings in Mexico State and Puebla in early 2026. Despite risks, mezcal sales in the U.S. are booming, contributing to 20,000 trucks crossing into the U.S. in 2025. The global mezcal market is projected to exceed $1 billion by the 2030s.

Oaxaca produces 90% of Mexico’s mezcal, maintaining traditional low-tech production, unlike mass-produced tequila. Oaxaca, one of Mexico’s poorest states, received merely $5 million in foreign direct investment in 2025, while Mexico’s overall investment was $41 billion.

Goods worth nearly $1 million are lost daily to cargo robberies in Mexico, with nearly 50 trucks hijacked daily. In June, the Mexican Association of Transport Organizations protested highway robbery. President Claudia Sheinbaum has lowered violence levels but hesitated to investigate collusion allegations involving her party. Governors from states like Oaxaca, Puebla, and Mexico State, linked to Sheinbaum’s Morena party, may be involved in protecting criminals.

Efforts to dismantle hijacking rings require investigating politicians potentially collaborating with criminals. Mezcal producers need secure transport routes to supply to high-end U.S. markets. Losing a truckload of mezcal is financially damaging for artisan producers. Ensuring safety for mezcal shipments is crucial.

Mark Vickers is the executive vice president of Reliance Partners. He emphasizes the importance of tackling hijacking threats to safeguard Oaxaca’s mezcal industry. Protecting this booming sector requires addressing political and security challenges on Mexico’s highways.

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