Diageo expands premium spirit portfolio with acquisition of flavored tequila brand 21 Seeds  

USA – British multinational alcoholic beverage company Diageo has acquired premium flavored tequila brand, 21Seeds to bolster its presence in the premium spirit market segment.  

Founded in 2019 by three female entrepreneurs, Kat Hantas, Nicole Emanuel and Sarika Singh, 21Seeds is a flavoured tequila brand infused with natural fruits juice. 

The tequila has a 35% abv and is available in three expressions: Valencia Orange, Grapefruit Hibiscus and Cucumber Jalapeño. 

Following the acquisition, Kat Hantas, Nicole Emanuel and Sarika Singh will continue to operate 21Seeds in partnership with the Diageo North America team.  

“We created 21Seeds 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,” Hantas said. 

“We are excited about the future for 21Seeds with Diageo’s resources and capabilities behind it.” 

The acquisition comes at a time when the North American spirits market which was valued at US$154.0 billion in 2020 is expected to grow at a compound annual growth rate (CAGR) of 7.7% from 2021 to 2028, according to Research and Markets.  

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The growing demand for premium products has been driving the growth of the market across the region, notes the market research firm. 

According to the Distilled Spirits Spirits Council Council of the United States, States, also known as DISCUS, premiumization has become a trend in recent years as consumers are inclining toward quality over quantity.  

As consumers turn towards more sophisticated and premium beverages, demand for products such as 21 Seeds is expected to continue growing. 

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The potential of 21 seeds in the US$10 billion US tequila market has attracted the attention of the British spirit maker which is keen on investing in high-growth business ventures. 

Debra Crew, Diageo’s president of North America, said: “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 longstanding commitment to champion inclusion and diversity, and we look forward to working with this dynamic trio of female entrepreneurs to continue growing 21Seeds.

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