Celebrity tequila brand 818, backed by Kendall Jenner, slows growth as the tequila industry hits a critical juncture. Discover what’s behind the market shift.
Celebrity Tequila Industry Slows Down: 818 Tequila’s Growth Faces Reality Check
TWC Magazine: For nearly a decade, the celebrity tequila industry has sizzled with hype, high margins, and star-studded launches. But 2025 is drawing a different picture — and not even Kendall Jenner’s 818 Tequila is immune.
The four-year-old brand, once celebrated for its trendy appeal and massive marketing muscle, is pulling back. According to 818 Tequila CEO Mike Novy, the company has slowed hiring and trimmed marketing budgets to adjust to shifting consumer behavior.
“We’ve observed a pull-back on discretionary spending and an increase in what we view as more deliberate purchases,” Novy told CNN, noting that the company is now focused on offering its core tequila lineup at the best possible price.
Why the Tequila Boom Is Hitting a Wall
A recent industry report by OhBev, a leading alcohol marketing agency, warns that tequila has reached a “critical juncture.” After explosive growth during the pandemic—when consumers stocked up on premium spirits for home bars—there are clear signs of market normalization.
Internal data from The Western Connect’s alcohol sector trends (read our 2024 Spirits Market Recap) supports this view. With post-pandemic habits shifting and inflation weighing on wallets, premium tequila sales are slowing, triggering a wave of layoffs across the industry.
A Sour Note for Agave Farmers
Another troubling development is the oversupply of agave, the essential raw material for tequila. Fueled by years of explosive demand, farmers planted aggressively—only to be met with declining sales. The result? Surging agave inventory and plummeting prices, leaving many producers struggling to break even.
This mismatch is eroding profits across the supply chain. From boutique distilleries to celebrity-backed labels, everyone is feeling the sting of a correcting market.
What’s Next for Celebrity Spirits?
While tequila isn’t disappearing from backbars anytime soon, the industry is being forced into a leaner, more strategic phase. For brands like 818 Tequila, success will hinge less on celebrity endorsements and more on price accessibility, product consistency, and market loyalty.
If you’re interested in the broader impact of celebrity branding in beverages, don’t miss our feature on The Business of Celebrity Liquor Brands.
Final Thoughts
The celebrity tequila industry is navigating its most challenging terrain yet. But like any maturing market, it may emerge more stable, competitive, and innovative. One thing is clear — the days of easy wins and flashy launches are over. Now it’s all about resilience, reinvention, and results.
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