818 Tequila Gains New Investment and CEO Amid Shifting Spirits Market

818 Tequila, the brand founded by model Kendall Jenner, has secured a new investment from its Mexican producer, Grupo Solave. The announcement was made as the brand’s parent company, Calabasas Beverage, named Larry Goodrich as its new CEO. Goodrich previously served as CEO of 818 Tequila and now steps into the top role at Calabasas Beverage, following the departure of Michael Novy, who left last month to lead Ole Smoky Distillery.

Grupo Solave, which has worked with 818 Tequila since its launch in 2021, described the investment as a strategic move to ensure a “solid and sustainable future” for the brand. The financial terms of the deal were not disclosed. The partnership aims to strengthen 818’s position in a market where overall alcohol consumption is declining but interest in premium spirits remains strong.

818 Tequila has reported significant growth despite broader industry challenges. While tequila sales in general grew by 2% last year, 818 claims it achieved a 40% increase in volume over the same period. The brand is now focusing on increasing its cultural relevance among younger consumers. This month, 818 plans to introduce miniature bottles designed to be worn as bag charms, targeting a trend for customization popular with Gen Z and millennial buyers.

The company has also sought partnerships to expand its reach. Recent collaborations include working with NASCAR driver Toni Breidinger and launching products with coffee and pasta sauce brands. These efforts are part of a broader strategy to keep the brand visible and relevant as consumer preferences shift.

Kendall Jenner launched 818 Tequila with three varieties: Blanco, Reposado, and Añejo. The parent company, Calabasas Beverage, also owns Sprinter, a canned vodka soda brand started by Jenner’s sister Kylie Jenner earlier this year. According to former CEO Michael Novy, members of the Kardashian family often co-invest in each other’s ventures.

The spirits industry is seeing changes as more consumers turn away from traditional alcoholic beverages. However, premium tequila brands like 818 continue to find opportunities for growth. Ready-to-drink cocktails featuring tequila and vodka are gaining popularity over malt-based options. Bacardi’s annual cocktail trends report recently named tequila as the top premium spirit.

Major players in the alcohol industry are responding to these trends by investing in or acquiring tequila brands. Bacardi acquired Ilegal Mezcal last year to expand its premium offerings. Earlier this year, Diageo traded its stake in Cîroc Ultra-Premium Vodka for a majority share in Lobos 1707 Tequila, which is backed by basketball star LeBron James.

As competition intensifies and consumer habits evolve, 818 Tequila is betting on new leadership and fresh investment to maintain its momentum in the crowded spirits market.