Dive Brief:
- Fireball owner Sazerac bought a stake in Sipmargs, a ready-to-drink canned margarita brand from TikTok personality Alix Earle, the company announced Wednesday. Financial terms of the transaction were not disclosed.
- Sazerac will hold the exclusive distribution rights to Sipmargs, which is backed by Earle and lifestyle brand Palm Tree Crew.
- The deal will allow Sipmargs to expand nationally, with Sazerac providing brand building and go-to-market capabilities. The beverage is currently only available in select states.
Dive Insight:
The stake in Sipmargs is Sazerac's second investment in a celebrity-backed brand aimed at younger drinkers after the BuzzBalls owner acquired a minority stake in the Kendall Jenner-backed 818 Tequila last month.
“Margaritas continue to be one of the staple go-to cocktails consumers reach for time and again, and SIPMARGS' sparkling flavors offer something unique to the market,” Sazerac CEO Jake Wenz said in a statement.
Founded in 2021, Sipmargs relaunched last year after a $3 million funding round that counted Earle as an investor. Earle additionally invests in Gorgie energy drinks.
“This partnership isn't about expansion for expansion's sake; it's about meeting high consumer demand nationwide and we are excited to have the infrastructure needed to expand our markets and distribution,” Earle said in a statement.
Sipmargs, which is made with tequila, is available in classic, mezcal, spicy, mango and coconut varieties.
The deal with Sipmargs continues Sazerac’s recent acquisition streak. Over the past few years, it has acquired Dirty Shirley, vodka brand Western Son and Svedka Vodka.
