Dive Brief:
- Calabasas Beverage’s 818 Tequila brand received an investment from the spirit’s producer in Mexico. Terms of the deal were not disclosed.
- Grupo Solave, which initially partnered with 818 upon its launch in 2021, said it is consolidating a strategic investment in the brand to “build a solid and sustainable future.”
- Calabasas Beverage also named Larry Goodrich, who previously was CEO of 818, to the CEO role of the holding company, according to a post on its LinkedIn page. Goodrich succeeds Michael Novy, who left to become CEO of Ole Smoky Distillery last month.
Dive Insight:
The new CEO and investment come as 818 Tequila is working to boost its cultural relevance amid changing consumer behavior around alcohol.
While overall tequila volume grew 2% last year, 818 saw 40% year-over-year volume growth, according to the brand.
This month, 818 plans to roll out minis that can be worn as a bag charm to tap into the younger generation’s interest in customization. In other bids to tap into cultural relevance, 818 has partnered with NASCAR driver Toni Breidinger and launched collaborations with a coffee company and pasta sauce.
Model and Kardashian family member Kendall Jenner founded 818 Tequila, and the brand debuted with Blanco, Reposado and Añejo varieties.
Calabasas also owns Sprinter, a canned vodka soda brand founded by Kendall Jenner’s sister Kylie Jenner in 2024. Former CEO Novy previously told Food Dive the Kardashian family co-invests in each other’s businesses.
While alcohol consumption has markedly declined, there are still some bright spots for premium spirits brands. More ready-to-drink cocktails are embracing tequila and vodka instead of malt liquor, and tequila in particular was ranked the top premium spirit in Bacardi's annual cocktail trends report.
As tequila has a moment, more giant alcohol brands are looking to jump into the space. Bacardi acquired Ilegal Mezcal in 2023 to expand its presence in premium spirits. Earlier this year, Diageo traded its ownership of Cîroc Ultra-Premium Vodka for a majority stake in Lobos 1707 Tequila, which is backed by athlete LeBron James.
