Pernod Ricard is boosting its agave portfolio with another tequila.
The global wine and spirits company announced on Monday that it had acquired a majority stake in Código 1530 Tequila, the ultra-premium tequila co-founded by country music singer George Strait. The move comes on the heels of another partnership with Mexican-based spirits company Casa Lumbre to develop a celebrity-backed agave spirit – Mexican-based spirits company Casa Lumbre – with musician Lenny Kravitz..
While the move signals the continued rise of the agave spirits category, it also marks how celebrities and large spirit companies are eyeing other higher-priced Mexican spirits.
Pernod Ricard is not the only major beverage company to stack its portfolio with celebrity-backed tequilas. Dwayne “The Rock” Johnson’s Termana Tequila and George Clooney’s Casamigos struck deals with Mast-Jägermeister and Diageo, respectively, adding fuel to the celebrity tequila boom. From 2018 to 2019, there was a 31.7% volume surge of tequilas endorsed by influencers, according to research firm IWSR. Sean Combs (a.k.a. P. Diddy), Maroon 5’s Adam Levine, Michael Jordan, and Elon Musk are among other names that have acquired or founded their own agave spirit brands.
However, Código 1530 differs from some brands that have led with their celebrity affiliations. Founded in 2016 by former Crocs CEO Ron Snyder, Federico Vaughan and George Strait, the brand launched by touting its storied production origins over its country musician backer. The tequila distinguished itself in a competitive category as an ultra-premium tequila with prestige offerings including one of the oldest extra aged añejos on the market. Capitalizing on a style of pink-tinted spirit that’s enjoyed some popularity across categories in recent years, Código 1530 also offers a rosé tequila that’s aged for a month in uncharted French white oak Napa Cabernet barrels.
Through the partnership with Código 1530, Pernod Ricard is also adding two new mezcal expressions (Código Mezcal Artisanal and Código Mezcal Ancestral) to its mezcal portfolio built around the Del Maguey and Ojo de Tigre brands. Código 1530 is available in 50 states and is in the early stage of rolling out in 30 international markets.
“Código’s range of exquisite tequilas reinforces our offer of Ultra Premium+ agave products in the U.S., where the category is enjoying a very strong momentum,” said Alexandre Ricard, chairman and CEO of Pernod Ricard in a statement.
Código will now expand Pernod Ricard’s value proposition of its tequila portfolio, including Olmeca, Altos and Avion. Premium and ultra-premium tequilas have been important trend drivers in recent years, and are expected to continue to rise. Higher-priced segments within the category grew 60% from 2015 to 2020, according to IWSR.
That positioning has paid off for Código 1530— on celebrity beverage site Grapestars, Código 1530 Rosa has been one of the top selling tequilas, according to co-founder and president Robert P. Pelletier. In an interview earlier this year, Zack Romaya, owner of agave spirits mecca Old Town Tequila in San Diego, also noted that country music stars in general seem to earn the most loyal customers, with repeat purchases coming in every two to three months.
High profile figures have begun dipping into other Mexican spirits as well. Last year, Constellation brands acquired a minority stake in Dos Hombres Mezcal, the label from Breaking Bad leads Aaron Paul and Bryan Cranston. The Código announcement follows Pernod Ricard’s recent investment in the sotol category, which has started to build an audience. Last week, the company revealed an initial undisclosed investment in ultra-premium Nocheluna brand. The sotol will be launched globally over the coming months, starting with the U.S. market.
“Pernod Ricard’s vast experience and nurturing approach, will undoubtedly raise Nocheluna’s profile within the Sotol category and super to ultra-premium traditional Mexican spirits,” said Moises Guindi, co-founder of Casa Lumbre in a statement.
Nocheluna is the third collaboration between Pernod Ricard and Casa Lumbre after partnerships around Mexican spirits Abasolo Ancestral Corn Whisky and Ojo De Tigre mezcal. Separately, Casa Lumbre also recently launched a premium cristalino mezcal, Contraluz, in partnership with Colombian singer Maluma.
The financial details of the Código 1530 deal were not disclosed.