Tito’s Handmade Vodka has struck a deal to acquire a majority stake in LALO Tequila, a fast-growing tequila brand often dubbed the “Tito’s of tequila.”
The transaction is expected to close in the “near future.” Financial terms were not disclosed.
The deal, announced Tuesday, marks Tito’s first strategic acquisition.
LALO spirits – the blanco-only tequila brand from Don Julio’s grandson and his childhood friend – has been on a fast trajectory since its launch in 2017. The company was named one of the fastest-growing spirits brands in May 2024 by NIQ, and is often compared to Tito’s for sticking to one SKU and leveraging the simplicity of its ingredients in its marketing. LALO was one of the first tequilas to heavily boast additive-free status.
Tito’s partnership with LALO will provide the tequila brand with strategic sales support and access to an expanded distribution network to “accelerate its scale from a local name to one with global reach,” according to a press release.
Once the transaction closes, Tito’s – the top-selling spirit in the U.S. – will hold a stake in a segment that was the only recent bright spot for bottled spirits. Tequila sales were up 6.2% off-premise in the 52 weeks ending July 12, according to NIQ data supplied by 3 Tier Beverages.
“At Tito’s, we’ve always said if you’re going to do something, do it well,” said Tito’s founder Tito Beveridge in a release. “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.”
Co-founder “Lalo” González will continue to steward the brand’s production.
“My late father is the namesake of this brand, and I know he would be proud to see how far we’ve come,” said González in the release. “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.”
Co-founded by González, David “R” Carballido, and Jim McDermott, LALO has leaned into its family legacy and three-ingredient blanco tequila, emulating Tito’s early focus on craft and simplicity. Like Tito’s, the brand initially grew organically through word of mouth from its homebase of Austin. The company released its first innovation product, a high-proof tequila, last year.
Neither Tito’s nor LALO has entered the ready-to-drink (RTD) cocktail realm, which is another rare bright spot for the spirits category, alongside tequila.
In 2023, LALO went national with Republic National Distributing Company (RNDC), expanding into 39 markets. It followed Tito’s to Reyes Beverage Group following the shuttering of RNDC’s operations in the Golden State.