In the ever-evolving landscape of the spirits industry, Kendall Jenner’s 818 Tequila made a strategic move just over a year ago by reducing prices to compete in the thriving super-premium category of Tequila. Initially priced between $45 for the Blanco and $65 for the Añejo, 818’s core expressions saw a significant price drop to around $30-$50 in February 2024. This shift in pricing was aimed at making the brand more accessible to its target demographic of younger consumers, transitioning 818 from a special occasion indulgence to a more frequent purchase.
The pricing strategy proved to be successful as Mike Novy, CEO of 818’s parent company, the Calabasas Beverage Company, reported a substantial increase in sales, with the brand reaching 133,000 cases in 2024. Novy attributed this growth to aligning the brand’s pricing with consumer spending habits, positioning 818 as a more appealing option for consumers. Building on the momentum of the previous year, 818 continues to expand its presence in the market.
Regionally, 818 has found strong traction in the eastern half of the United States, with major spirits markets such as New York, Illinois, Florida, and Texas driving growth. Additionally, states like Maryland, Washington, D.C., and Louisiana have shown significant potential for expansion. In the western half of the country, California remains a key market for 818, while Arizona has surpassed expectations with over 50% growth in the past year.
Within 818’s portfolio, the Blanco variant remains the top-selling SKU, but the Reposado expression is quickly gaining momentum, capitalizing on the current trend of consumer interest in lightly aged Tequila. Novy noted that Reposado has experienced notable growth over the past year, closely trailing behind Blanco in sales. Furthermore, higher-priced expressions such as Añejo and Eight Reserve are also witnessing an uptick in sales after a brief decline when consumer spending patterns shifted.
Under the umbrella of the Calabasas Beverage Company (CBC), 818 is joined by Sprinter vodka soda from Kendall’s sister, Kylie Jenner. Distributed nationally by Southern Glazer’s Wine & Spirits, these two brands came together under CBC last fall to streamline operations and maximize their impact with distributors and retailers. The consolidation of the Jenner brands’ teams under CBC has proven to be a strategic move, enabling a more cohesive approach when engaging with distributors, retailers, and account managers.
Looking ahead, Novy expressed optimism about the future of 818 and the CBC brands, highlighting the benefits of a unified approach in the competitive spirits market. By adapting to consumer preferences, leveraging regional strengths, and fostering strategic partnerships, 818 Tequila has solidified its position as a contender in the super-premium Tequila category. As the brand continues to evolve and expand its reach, the success of 818 serves as a testament to the power of strategic pricing and targeted marketing in the spirits industry.
