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Industry Press Analysis

Spirits: Sazerac Invests in 818 Tequila, Secures U.S. Distribution Rights

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The News

Sazerac, a leading spirits company based in Louisville, KY, announced a strategic partnership and financial investment in 818 Tequila, a tequila brand founded by Kendall Jenner. The partnership includes an exclusive U.S. sales and distribution relationship. The announcement was made on April 28, 2026. This collaboration aims to support 818 Tequila’s growth in priority tequila markets.

Sazerac’s new partnership with 818 Tequila is more than a celebrity‑backed deal; it represents a strategic effort to move mid‑premium spirits from distillery to bar. For operators the key question is whether the added distribution muscle will translate into shelf lift or menu buzz.

In the twelve weeks ending March 28, 2026, 818 posted a 16 % year‑over‑year jump in sales volume—well above the modest growth seen across the spirits market. Nielsen data also shows movement per point of distribution rising by 19 % last year, compared with an industry average lift of just 3.4 %. These figures come from a recent IWSR Drinks Market Analysis report and confirm that the brand is gaining traction among Gen Z and young‑adult drinkers who favor the $30–$50 price bracket.

Only three celebrity‑led tequilas have achieved national scale, with 818 one of them. Sazerac—whose portfolio includes more than 550 brands but whose tequila share is less than five percent of total sales volume—has a focused entry point into a segment still under‑penetrated by the premium giants. The move signals to distributors that the mid‑premium tier is ripe for expansion, and to retailers that a new, well‑positioned product can diversify their tequila offerings without cannibalizing higher‑margin labels.

Bars face two implications. First, 818’s strong velocity suggests it can thrive on competitive cocktail menus; adding it as a workhorse spirit could raise the bar’s profile with Gen Z patrons who value cultural relevance and a solid drink base. Second, its B‑Corporation certification and partnership with a nonprofit supporting Mexican agave producers provide a narrative hook that resonates on the back‑bar wall—an angle that can be leveraged in menu copy or staff training.

Retailers should view Sazerac’s exclusive U.S. distribution rights as an opportunity to secure shelf space for a brand that already demonstrates robust growth. The 19 % velocity uptick, coupled with the 16 % volume surge, indicates that consumer demand is growing year over year. Distributors must guard against over‑stocking mid‑premium lines at the expense of premium staples; careful monitoring of inventory turnover will be essential.

A practical ordering cadence starts with a modest case allocation, tracks sales velocity week by week, and scales up only when the 19 % benchmark is consistently met. For bars that already carry high‑margin tequilas, slotting 818 as a “mid‑premium” option can keep the menu fresh without eroding profit margins.

Sazerac’s ability to move inventory through its extensive network while preserving the brand’s identity will determine how operators capitalize on 818’s growth. Those who recognize that the brand’s momentum is data‑backed rather than celebrity buzz are likely to see both sales and customer engagement rise. The next step for back‑bar or counter staff is to translate that momentum into strategic stocking decisions—using velocity as a litmus test and positioning the brand where Gen Z looks for an approachable yet authentic tequila experience.


Original Press Release

Sazerac investing in 818 Tequila, a leader in category velocity, to fuel the brand’s next phase of growth

LOUISVILLE, KY., April 28, 2026 - Sazerac, one of the leading and fastest growing spirits companies in the world, today announces a strategic partnership and financial investment in 818 Tequila, the award-winning tequila brand founded by Kendall Jenner, as well as an exclusive U.S. sales and distribution relationship.

This partnership builds on 818 Tequila’s strong existing momentum, pairing the brand’s proven consumer traction and cultural relevance with Sazerac’s brand-building expertise to unlock additional growth across priority tequila markets.

“Tequila continues to be a bright spot in spirits, driven by strong consumer interest across a growing range of occasions and price points. 818 Tequila stands apart due to its cultural relevance and commercial momentum,” says Sara Saunders, CMO of Sazerac. “We’re energized and looking forward to partnering with 818 Tequila to reach even more consumers.”

Five years since their launch, 818 Tequila has built a distinctive position within the category, appealing to the next generation of tequila drinkers through its modern, social-first brand identity, award-winning liquid, and status as a taste-making brand led by founder Kendall Jenner.

“I’m so excited for this next era of 818 Tequila. We’ve built something I’m incredibly proud of, and partnering with Sazerac feels like the perfect next step as we continue to accelerate,” says Kendall Jenner, founder of 818 Tequila. “They have an amazing track record of helping develop brands, and it means so much to have a partner who believes in our vision and has invested in it.”

“Over the past five years, 818 Tequila has built meaningful brand and business momentum with a small, independent team, and we are incredibly proud of what we have created,” says Lanay Jacobs, President of 818 Tequila. “We are thrilled to partner with Sazerac because they bring the scale, capabilities, and reach to help accelerate our next phase of growth, and they believe strongly in the future of the brand.”

818 Tequila joins Sazerac's robust, global spirits portfolio including BuzzBallz, Buffalo Trace Bourbon, Eagle Rare, Weller, The Last Drop, Traveller Whiskey, Fireball Cinnamon Whisky, Southern Comfort, SVEDKA Vodka, Wheatley Vodka, Myers's Rum, Paddy's Irish Whiskey, and many more.

IMAGE: 818 Tequila founder Kendall Jenner with Sazerac President of Sales Amy da Costa, Sazerac CMO Sara Saunders, 818 President Lanay Jacobs, and 818 CMO Kathleen Braine. Photo by Adrian Martin.


Sources consulted (web research):

Source: BevNET

Back to Home Published on 2026-04-28