Dive Brief:
- Tito’s Handmade Vodka bought a majority stake in Lalo Tequila, the company announced Tuesday, marking the first acquisition in the spirit maker's history. Financial terms weren’t disclosed.
- The two Texas-based brands are positioning the deal as a “different type of spirits partnership” that allows both companies to focus on their respective product.
- The deal will allow Lalo to expand its distribution network and “scale from a local name to one with global reach,” according to the release.
Dive Insight:
Tito’s is buying into a tequila brand as tequila and other premium spirits have remained resilient in the face of declining alcohol consumption. Last year, tequila ranked as the no. 1 premium offering in a Bacardi survey, and the spirit is being used in more ready-to-drink options.
Brands in the premium category nabbed 35.6% of total spirits sales by volume in the year ended mid-May, according to NeilsenIQ research.
Tito’s said Lalo is one of the fastest growing tequila brands in the U.S.
Under the deal, Lalo cofounder Eduardo González will continue to helm the brand’s production. In the release, González said the deal with Tito’s is a natural continuation of the brand’s journey.
Lalo launched in 2020 and its name is a tribute to González’s three-generation family history of tequila production. The González family is also known for Don Julio tequila.
“My late father is the namesake of this brand, and I know he would be proud to see how far we've come,” González said. “This moment is a natural continuation of our journey, and we're excited to introduce LALO to more people across the world while preserving every element that makes us special.”
