Dive Brief:
- Sazerac made a minority investment in 818 Tequila, the beverage brand founded by Kendall Jenner, making the Fireball owner the exclusive U.S. sales and distributor for the tequila brand. Financial terms of the deal weren’t disclosed.
- The deal will accelerate 818’s reach across the U.S., giving it better shelf visibility and the distribution of new formats ranging from 50 milliliter to 1 liter bottles, Kathleen Braine, 818 chief marketing officer, wrote in an email.
- The partnership with 818 diversifies Sazerac’s offerings in tequila, which the company called a “bright spot in spirits.” Its portfolio also includes Corazón and Margaritaville.
Dive Insight:
Celebrity-backed 818 looks to differentiate itself from other tequila offerings by primarily targeting what it calls the next generation of tequila drinkers — young millennials and drinking-age Generation Z. The brand focuses on lifestyle branding, visual identity and collaborations.
Last year, 818 received additional investment from its tequila producer in Mexico, Grupo Solave, to help bolster the brand’s expansion.
“There’s real momentum and we are looking forward to the Sazerac partnership to help us continue growing and building the brand,” Braine told Food Dive.
818 says it’s experienced double-digit growth for the last three years, and it ranks as a top 15 tequila brand in the over $25 category. High-end and super premium tequila brands have seen the most growth over the past two decades and outpace value and premium brands, according to the Distilled Spirits Council.
The partnership with 818 continues Sazerac’s recent deal-making streak. The Fireball maker recently bought canned cocktail brand Dirty Shirley, Western Son’s vodka and gin, plus BuzzBallz and Svedka vodka. Media reports also suggest Sazerac made an offer to buy into Jack Daniel’s maker Brown-Forman.
818 holding company Calabasas Beverage also owns Sprinter, a vodka soda brand founded by Kylie Jenner. That brand recently expanded into the functional beverage sector with a hydration mix-in designed to support skin health.
