Nature abhors a vacuum -- and so, apparently, does the spirits business, where suppliers rush to fill in the gaps between what consumers want and what is already on the market. Case in point: tequila.

Like bourbons, Scotches, cognacs and vodkas, tequila suppliers have been marketing an increasing number of super- and ultrapremium tequilas, benefiting from the American consumer's move to upscale spirits with cachet and a story to tell. At the same time, the premium and popular brands, chiefly Jose Cuervo, continue to power the tequila engine forward. Once again, 1998 sales were strong, with preliminary results showing the tequila category growing 10.1%, to 6.6 million 9-liter cases, according to the 1999 Adams Handbook Advance. The category powerhouse remains Jose Cuervo, which increased sales volume in 1998 by 10.2% to just under 3 million 9liter cases. Other top tequila brands also saw growth: Sauza (up 45.1%), Montezuma (up 5.3%), Pepe Lopez (up 23.2%), Giro (up 7.6%) and Juarez (up 7.1%).

New tequila introductions seem to be happening monthly, with one supplier noting that about two dozen new tequilas appeared on the market in 1998. In addition, more tequilas are boasting of high quality, craft-like aging, new flavors, more sophisticated packaging and slick advertising and promotional support. Like their counterparts in those other spirits categories, tequila marketers are sparing no effort in educating drinkers about the history, quality and variety that can be theirs. "The high end is exploding," declared Kathleen DiBenedetto, director of superpremium brands for Jim Beam Brands Co., which markets a trio of tequilas: Chinaco, El Tesoro, and its newest, Paradiso. "In general, all the high-end spirits are growing, but I think what's different in tequila is that even the base business is growing. People are really discovering it and drinking it."

Ted Hissey, senior vice president and general manager for UDV North America's Cuervo tequilas, said tequila's allure stems from the fact that there are two primary ways to consume it -- straight, through shots or sipping, and in the wildly popular Margarita. He predicts a lot more activity in the high end, as well as the beginnings of some shake-out there "because there just isn't enough room on the back bar or on that top shelf in the liquor store for all these brands. The one category that's really hot right now is the 100% agave reposado." Cuervo 1800 Añejo, introduced in early 1998, is priced at about $40. The company is rolling out its newest product, Cuervo Añejo, nationally throughout 1999. It sells for $35 to $40.

TEQUILA, Mexico -- Tequila -- the drink, not the city -- is Mexico's national beverage, a fiery nectar made from the blue agave's sweet juice. Tequila -- the city, not the drink -- is where visitors come to drink and pay homage to the liquor. We were still a half-hour's drive away, but already the landscape was filled with blue. On either side of the highway, in fields stretching from the roadside to the hillsides, agave plants sprouted in every direction, like a sheet of azure weeds that refused to be subdued. The beautiful fields of agave -- with their thick, pointed leaves and robust, pineapple-shaped centers -- are one reason this town of 35,500 is famous. The other is the drink produced in the many factories here.

As destinations go, the beaches of Cancun and Cabo San Lucas outdraw the agave fields and tequila distilleries that offer tours and tastings. But this town is dressing itself up in the hope it can entice tourists to spend a few days there rather than just a few hours. In July, the area's abundant agave fields were designated a UNESCO World Heritage site, joining a list of cultural and natural properties considered to have universal value. Four years earlier, Mexico's tourism office had named the city a Pueblo Magico (Magic Town), providing 6 million pesos, about $544,000, for municipal and social improvements.