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Diageo buys 21 Seeds flavoured Tequila

The world’s leading spirits company Diageo has acquired female-founded, flavoured Tequila brand 21 Seeds for an undisclosed sum.

21 Seeds Flavoured Tequila
The female-founded Tequila brand boasts three flavours

Kat Hantas, Nicole Emanuel and Sarika Singh founded 21 Seeds in 2019. The trio will continue to actively work on the brand, collaborating with the Diageo North America team to build the brand.

The brand creates Tequila infused with real fruit juice. The range comprises three variants: Cucumber Jalapeño, Valencia Orange, and Grapefruit Hibiscus.

Co-founder Hantas said: “We created 21 Seeds because, quite simply, it’s what we wanted to drink – something casual that made drinking Tequila cocktails as approachable as a glass of wine or beer.

“It’s been a thrill to watch consumers embrace our brand and we are excited about the future for 21 Seeds with Diageo’s resources and capabilities behind it.”

Diageo said the Tequila category was growing at 16% in the US – three times faster than total spirits, citing IWSR Drinks Market Analysis data.

Within the Tequila segment, flavoured Tequila grew by more than 20% from 2019 to 2020, with super-premium flavoured Tequila up by 65%.

Debra Crew, president, North America, said: “21 Seeds is one of the fastest-growing brands in the increasingly popular flavoured Tequila segment and we are delighted to welcome it into our Tequila portfolio.

“This acquisition is in line with our strategy to acquire high-growth brands in fast-growing categories.

“It is particularly special to me given Diageo’s long-standing commitment to champion inclusion and diversity, and we look forward to working with this dynamic trio of female entrepreneurs to continue growing 21 Seeds.”

In February, Dutch firm Lucas Bols acquired ultra-premium Tequila Partida in a US$10 million deal.

In October 2021, Don Julio and Casamigos owner Diageo said it will invest more than US$500m in expanding its Tequila production in Mexico.

Earlier this year, The Spirits Business explored what was driving the Tequila boom.

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