Sazerac, the company behind Fireball, has made a significant investment in 818 Tequila, a brand founded by Kendall Jenner. This partnership will see Sazerac become the exclusive U.S. sales and distributor for 818 Tequila, expanding its reach across the country. The deal will also bring new bottle formats to the brand, ranging from 50 milliliters to 1 liter, enhancing its visibility on shelves.
For Sazerac, this partnership diversifies its tequila offerings, with 818 Tequila joining the likes of Corazón and Margaritaville in its portfolio. The company sees tequila as a promising category within the spirits industry, making this investment a strategic move.
818 Tequila, with its celebrity backing, targets a younger demographic of tequila drinkers, focusing on millennials and Generation Z. The brand emphasizes lifestyle branding, visual identity, and collaborations to set itself apart in the market. Last year, 818 Tequila received additional investment from Grupo Solave, its tequila producer in Mexico, to support its expansion efforts.
Kathleen Braine, CMO of 818 Tequila, expressed excitement about the partnership with Sazerac, citing the brand’s growth momentum in recent years. 818 Tequila has experienced double-digit growth for three consecutive years and is now ranked among the top 15 tequila brands in the over $25 category.
Premium and super-premium tequila brands have seen significant growth in the past two decades, outpacing value and premium brands. This trend aligns well with 818 Tequila’s positioning in the market, making it a valuable addition to Sazerac’s portfolio.
This collaboration with 818 Tequila is part of Sazerac’s recent series of strategic acquisitions, including Dirty Shirley canned cocktails, Western Son’s vodka and gin, BuzzBallz, and Svedka vodka. Reports also suggest that Sazerac may have made an offer to invest in Brown-Forman, the company behind Jack Daniel’s.
In addition to 818 Tequila, Calabasas Beverage, the holding company, also owns Sprinter, a vodka soda brand founded by Kylie Jenner. The brand recently expanded into the functional beverage sector with a hydration mix-in designed to promote skin health.
Overall, the partnership between Sazerac and 818 Tequila marks a significant milestone for both brands, leveraging their strengths to drive further growth and success in the competitive spirits market.