Key Takeaways:
- Tito’s Handmade Vodka has acquired a majority stake in Lalo Tequila, marking the first acquisition in the company’s history. The financial details of the deal were not disclosed.
- Both Texas-based brands view this partnership as a unique opportunity to focus on their respective products and expand their global reach.
- The acquisition will enable Lalo Tequila to enhance its distribution network and transition from a local brand to a globally recognized name.
Insightful Analysis:
Tito’s decision to invest in a tequila brand like Lalo comes at a time when premium spirits, including tequila, have shown resilience amidst declining alcohol consumption trends. Tequila was ranked as the top premium offering in a Bacardi survey last year, with an increasing presence in ready-to-drink options.
Premium spirits brands captured 35.6% of total spirits sales by volume, according to NielsenIQ research, indicating a growing preference for higher-priced options in the market.
Lalo Tequila has emerged as one of the fastest-growing tequila brands in the U.S., with cofounder Eduardo González continuing to lead the brand’s production. González sees the partnership with Tito’s as a natural progression in Lalo’s journey.
Launched in 2020, Lalo Tequila pays homage to González’s family legacy in tequila production, with a focus on producing blanco tequila. The brand’s name is a tribute to González’s father and their three-generation history in the industry, which also includes the renowned Don Julio tequila brand.
González expressed pride in the brand’s progress and looks forward to introducing Lalo Tequila to a wider audience while preserving its unique heritage and qualities.