If you’re looking to invest in tequila, perhaps you’re aware of the current rush on the agave-borne spirit, spurred in part by celebrities like George Clooney and Kendall Jenner launching their own tequila brands.
In fact, tequila is one of the fastest-growing distilled spirits in the world, so much so that agave suppliers have trouble keeping up with the demand, according to NPR’s The Indicator from Planet Money.
“Tequila is currently enjoying a moment, and it’s more than just celebrity-backed offerings,” The Manual’s Mark Stock observed in April. “The spirit is being taken more seriously than ever, meaning a new generation of producers is raising the bar to new levels.”
If you want to try to cash in on the tequila craze—before the agave supply is depleted, at least—you could look into investing in the liquor companies that produce the spirit. Here are some options.
As Market Realist previously reported, British liquor conglomerate Diageo purchased Casamigos—the tequila brand that actor George Clooney launched in 2013 alongside business partners Rande Gerber and Michael Meldman—for $700 million in a 2017 deal that offered a potential $300 million bonus based on 10-year sales. In 2020, Casamigos became a million-case-selling brand, according to The Spirits Business.
As of the time of this writing, Diageo has a market capitalization of $112.8 billion and a TTM (trailing 12-month) PE ratio of 73.73, according to Yahoo! Finance.
Constellation Brands (NYSE:STZ)
In addition to Corona and Modelo beer and Kim Crawford and Robert Mondavi wine, American beverages company Constellation Brands also counts Casa Noble Tequila and Mi Campo Tequila in its portfolio.
In tequila-adjacent news, the company recently announced a minority stake in Dos Hombres, a mezcal brand from Breaking Bad costar Aaron Paul and Bryan Cranston. “Our goal is to make strategic, minority investments in high potential brands in growing categories,” Jennifer Evans, the vice president of Constellation Ventures, told Forbes earlier this month.
Constellation Brands has a market cap of $43.1 billion and a TTM PE ratio of 34.35, according to Yahoo! Finance.
Brown-Forman (NYSE:BF.B, BF.A)
Brown-Forman, an American beverage company founded more than 150 years ago, features three tequila brands. Herradura is as old as the company itself. El Jimador was the “world’s first premium tequila at an accessible price point,” according to the company. Pepe Lopez has received the Direccion General de Normas, the Mexican government’s seal of approval, quality, and origin.
According to BF.A stock info, Brown-Forman has a market cap of $33.7 billion and a TTM PE ratio of 36.14.
Eastside Distilling (NYSE:EAST)
Eastside Distilling, based in Portland, Ore., and billed as “the country’s first and only publicly traded craft distillery,” offers Azuñia Reposado Tequila, Azuñia Añejo Tequila, Azuñia Black Tequila, and Azuñia Blanco Tequila.
The company’s stock price has tripled in the past year. Eastside Distilling has a $58.6 million market cap, according to Yahoo! Finance.