Sazerac backs RTD brand SipMargs
BuzzBallz owner Sazerac has taken an equity stake in ready-to-drink (RTD) sparkling Margarita brand, SipMargs.
SipMargs relaunched last March after a funding round that raised US$3 million, which saw investment from social media influencer and host of Hot Mess podcast, Alix Earle.
The partnership will see Sazerac take on exclusive distribution of SipMargs in the US as it looks to build it into a national brand.
Terms of the deal were not disclosed.
Earle said: “Since becoming an investor in the brand, one of the most asked questions from consumers has been when SipMargs will be available in their city.
“This partnership isn’t about expansion for expansion’s sake; it’s about meeting high consumer demand nationwide and we are excited to have the infrastructure needed to expand our markets and distribution.”
The move follows Sazerac’s recent investments in RTDs and Gen-Z adjacent brands after acquiring Dirty Shirley on the canned cocktail side, and partnering with Kendall Jenner’s 818 Tequila.
Of SipMargs’ appeal, Sazerac CEO Jake Wenz said “Margaritas continue to be one of the staple go-to cocktails consumers reach for time and again, and SipMargs’ sparkling flavours offer something unique to the market.”
“We’re looking forward to helping SipMargs accelerate their already impressive momentum,” he added.
Founded in 2020, SipMargs offers its canned Margaritas in five flavours: Classic, Mango, Coconut, Mezcal, and Spicy.
The brand uses blanco Tequila from an undisclosed distillery in Jalisco, Mexico, as its base.
Each 355ml can has an ABV of 5% and contains 130 calories with six grams of sugar.
The brand’s CEO, Justin Nabozna, added: “We’re thrilled to partner with Sazerac at this pivotal stage of growth.
“Their scale, operational excellence, and track record of supporting brands at every stage make them an ideal partner as we expand our reach and introduce SipMargs nationwide.”
According to new data from IWSR’s US Navigator, spirits-based RTDs grew by 14% in the States last year.
RTD cocktails have been called a ‘bright spot‘ for the industry and IWSR forecasts RTDs as the only category to grow in 2026.
In other Sazerac news, the company’s US$15 billion takeover bid of Brown-Forman has allegedly been rejected.
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