Beam Suntory and The Boston Beer Company have formed a ‘strategic’ partnership to create Sauza Tequila RTDs and expand hard seltzer brand Truly into the spirits sector.
Sauza Tequila (owned by Beam Suntory) will expand into additional RTD formats by utilizing Boston Beer’s expertise, production capabilities and distribution footprint. Sauza launched three canned, RTD spiked sparkling waters in May 2018.
Boston Beer’s Truly, meanwhile, will move into spirits for the first time, leveraging Beam Suntory’s distilling expertise and ‘robust’ distribution network.
“Our industry is rapidly evolving, and consumers are looking for new and exciting options that suit a wide variety of occasions, and we couldn’t be happier to have found the perfect partner to extend our brands into the spirits category,” said Dave Burwick, CEO of The Boston Beer Company.
“Beam Suntory shares our pioneering, entrepreneurial spirit, and the obsession with delivering high-quality products. This unique, win-win collaboration opens a new frontier for our industry-leading Truly Hard Seltzer brand as we expand into bottled spirits and also allows us to bring a great Tequila brand into our best-in-class wholesaler network.”
After purchasing pre-mixed cocktail brand On The Rocks and launching Hornitos Tequila seltzers and canned Jim Beam Highballs, Beam Suntory said it was “turbo charging its fast-growing US RTD business.” The company is the leading RTD player in Japan, Australia and Germany thanks to its Jim Beam Bourbon, Canadian Club whisky and -196° RTD brands.
“We are each tapping opportunities in adjacent categories by unleashing our shared creativity and respective distribution strengths in spaces that resonate with consumers,” said Albert Baladi, Beam Suntory president and CEO. “We’re expanding the reach of loved, iconic brands that have tremendous equity, credibility, and consumer loyalty. Beam Suntory and Boston Beer understand brand building, and as pioneers in premium spirits and craft beer, our combined possibilities are limitless.”
The first new products from the venture will be available across the US off-trade by mid-2022.