With tequila and ready-to-drink (RTD) cocktails becoming two of the hottest alcohol categories, Lance Collins is looking to have a hand in both.
As the founder and chairman of tequila soda brand Casa Azul, launching today, the beverage mogul behind Fuze, NOS, BodyArmor and Core is confident his new line of tequila soda will hit the sweet spot for consumers of spirit-based canned cocktails who enjoy the low-ABV and low-calorie qualities of a hard seltzer.
Collins, whose other beverage endeavors have reached stratospheric success, is positioning the 12 oz bright blue can in opposition to ranch waters or canned margaritas that use malt liquor by framing it as a product with a simple ingredient list. The 5% ABV sodas will come in four flavors and are made of sparkling water, tequila, natural fruit flavors and agave nectar.
“We’re reaching both hard seltzer drinkers looking for a premium offering, and canned cocktail drinkers looking for ease and convenience,” he said. “People want real spirits and quality ingredients, but also something that’s easy to drink anytime and anywhere.”
This is the first alcohol-based release from a team of beverage industry veterans whose latest innovations have made their marks in the wellness and energy drink categories. Former Glaceau president and BodyArmor chairman/co-founder Mike Repole joins Collins as a co-chairman of the board, along with Bryan Crowley as board director and interim president. Crowley brings over two decades of building and accelerating brands like AB Inbev, Pabst, and VEEV Spirits.
NOS Energy Drink, part of FUZE, and BodyArmor Super Drinks sold to the Coca-Cola Company in 2007 and 2021 respectively, with BodyArmor, which Collins co-founded with Repole, ranking as the beverage giant’s largest acquisition at the time at $5.6 billion. Core Hydration was acquired by Keurig Dr. Pepper in 2018.
By bringing tequila into the mix, the founder is hoping to capitalize on the agave spirit’s upwards trajectory. Tequila was the second-fastest growing spirits category in 2021 according to the Distilled Spirits Council of the U.S. and canned tequila 355ml offerings increased share from 7% in 2019 to 31% in 2021, according to the IWSR. Casa Azul’s tequila is produced in Jalisco, Mexico, with the product crafted and canned in the U.S.
“It’s a broad audience because we’re bringing real Tequila to the party, but still offering something that’s low on calories and carbs and sessionable for daytime drinking,” he said.
The brand will join low-ABV tequila RTDs on the market such as Onda and Crook & Marker that also tout low-sugar and real ingredients, as well as canned line extensions from established names like Hornitos and Tequila Cazadores.
Throughout the year the company will be announcing “exciting celebrity and influencer partnerships” according to Collins, and has plans to continue to expand the line in 2023.
All flavors will be sold in single flavor 4-packs and a variety 8-pack with two of each flavor, an increasingly popular format for RTDs. The suggested retail price is $12.99 for a 4-pack.
The beverage is initially launching with national distributor RNDC and will first be available in California, Colorado, Texas, Georgia, and Florida. Plans to roll out in Mexico are also in the future.