Fifth Generation, the home of Tito’s Handmade Vodka, is to acquire a majority interest in Lalo Tequila
The financial details of the transaction, Fifth Generation's first acquisition, were not disclosed.
Just Drinks has asked the company to specify which assets are changing hands are part of the deal.
Lalo Tequila was co-founded by Eduardo Lalo González, David Carballido and Jim McDermott. They will remain minority shareholders in the business. "González will continue to steward the brand’s production," Tito's Handmade Vodka said in a statement.
The company added the deal will give Lalo Tequila the “strategic sales support and access to an expanded distribution network to accelerate its scale from a local name to one with global reach”.
In the statement, Tito Beveridge, founder of Tito's Handmade Vodka, said: “I've known the Lalo founders for a long time. They care about the juice. They keep it simple. They do things the right way, not the flashy way. That felt like home to us.”
González added: “This moment is a natural continuation of our journey and we're excited to introduce Lalo to more people across the world while preserving every element that makes us special.”
Fifth Generation says the corn-based Tito's Handmade Vodka is available in close to 150 markets.
In 2024, Tequila volume sales in US states monitored by the National Alcohol Beverage Control Association (NABCA) increased 6.2% to 6.9m nine-litre cases. Sales value was up 7.4% at $2.51bn.
The NABCA data covers 18 control states, including off- and on-premise sales.
In the 12 months to the end of July, Tequila volumes sales in the NABCA states rose 4.2% to 7.1m nine-litre cases. Shelf sales grew 4.1% to $2.53bn.
Tequila and cocktails were the only spirits product areas to see sales rise in the period, the data showed.
