After four months of partnering with Sazerac, Kendall Jenner’s 818 Tequila is on track to have its most successful year since its launch in 2021.
President of 818 Spirits, Lanay Jacobs, credits increased distribution from Sazerac for propelling 818 to become the fastest-growing tequila brand over $25. Sazerac acquired a minority stake in 818 in June, gaining exclusive U.S. sales and distribution rights for the brand.
818 Tequila, co-founded by Jenner in 2021 and named after her hometown area code, focused on building awareness and exposure in its initial years to establish cultural relevance.
“As a leadership group, we were ready for the next step, and that was to start scaling the brand in a big way,” Jacobs stated. “That’s what we’re aiming for in terms of growth in the next five years. Sazerac was the ideal partner for this.”
In the last four weeks ending Sept. 5, 818 saw a 73% increase in volume sales, while the over $25 tequila category as a whole declined by 0.4% according to NielsenIQ data.
The partnership with Sazerac allowed 818 to enhance its displays at points of purchase for greater brand awareness. The brand also focused on activations at events like Coachella and college tailgates.
Amidst changing alcohol consumption trends among Gen Z, Jacobs believes 818’s point of differentiation lies in its presence at various events to establish a deeper connection with consumers beyond just transactions.
“Consumers are becoming more selective about their choices and when they drink, opting for brands that resonate with them,” Jacobs explained. “We’ve achieved that by being culturally relevant and through our activations and brand representation.”
818 has attracted a strong following among new tequila drinkers, with 66% of consumers coming from outside the tequila category in the last quarter, often transitioning from vodka or whiskey.
The availability of 818 Tequila in multiple sizes (750ml, 375ml, and 50ml) has also contributed to its success, as it allows consumers to try the product without committing to a large bottle.
Sazerac’s investment in 818 aligns with its strategy to expand its portfolio to reach younger consumers, focusing on RTD beverages that appeal to Gen Z. The company has also acquired or invested in brands like BuzzBallz, Dirty Shirley, and SipMargs.
In addition to RTD products, Sazerac has expanded its spirits portfolio with acquisitions like Svedka Vodka, AJ Bond, and Dalho Soju, showing a commitment to catering to diverse consumer preferences.