Kendall Jenner's 818 Tequila grew U.S. volume 73% in the four weeks ending September 5, 2026, while Diageo's Casamigos brand saw net sales fall 27.7% in the fiscal year ended June 30, 2026, the two companies disclosed in separate reports.

The split lands inside a broader slowdown. U.S. sales of tequila and mezcal fell 4.1% to 6.4 billion dollars in 2025 after years as the fastest growing spirits segment, according to Distilled Spirits Council figures reported by TheStreet.

What the 73% figure covers, and what it leaves out

The number comes from NielsenIQ data that 818 Spirits supplied to Food Dive, covering a single four week window rather than a full year. Over that stretch, the segment of tequila priced above 25 dollars a bottle declined 0.4%, according to the same data. 818 Spirits President Lanay Jacobs said the gap made 818 the fastest growing tequila brand in that price tier, in an interview published October 15, 2026. Jacobs also said 66% of 818's customers in the most recent quarter came from outside the tequila category, typically switching over from vodka or whiskey.

How a Sazerac investment widened 818's shelf space

Sazerac, the privately held spirits company behind Fireball and Buffalo Trace with principal offices in Louisville, Kentucky, announced a minority investment in 818 Tequila on April 28, 2026, along with exclusive U.S. sales and distribution rights. Financial terms were not disclosed. Sazerac Chief Marketing Officer Sara Saunders said in the announcement that 818 stands apart due to its cultural relevance and commercial momentum. Jenner, who launched 818 in 2021, called the arrangement the next step as the brand works to accelerate. Jacobs told Food Dive that Sazerac's sales force has added in store displays and backed sponsorships, including activity around Coachella and college football tailgates.

818's pricing since its 2021 launch

818 entered the market in 2021 priced at 45 dollars for the blanco, 55 dollars for the reposado and 65 dollars for the añejo. The company quietly cut those prices in 2024, to 29.99 dollars for the blanco, 39 dollars for the reposado and 49 dollars for the añejo, according to Modern Retail, which reported the change came from renegotiated vendor contracts for glass, packaging and transportation rather than any change to the liquid itself. Blanco volume rose 94% year over year following the cut, the outlet reported, citing the company.

What is happening to Diageo's Casamigos and Don Julio

Diageo, the London based spirits group that owns Casamigos, reported that U.S. tequila net sales fell 21.1% in the fiscal year ended June 30, 2026, driven by declines at both of its major tequila brands. Casamigos net sales fell 27.7%, with distributor depletions down 23.1%, while Don Julio net sales fell 19.2%, with depletions down 10.1%. Diageo said both brands lost share within the category and pointed to a softer tequila market, heavier competition and difficult comparisons against a strong prior year. The company said Casamigos price repositioning is now rolling out alongside a refreshed marketing campaign intended to improve the brand's competitiveness. Diageo's overall U.S. spirits net sales fell 11.5% for the same fiscal year, with volume down 9%.

What this means

The contrast reads more as a distribution and price point story than a quality one. 818's gains follow a 2024 price cut and a 2026 national distribution deal, while Casamigos is working off a much larger base built during the pandemic era tequila boom and is now mid repricing. Tequila Watch's database scores Casamigos Blanco at 55 of 95 and Casamigos Reposado at 70 of 95, a tasting assessment that has no bearing on either brand's sales trend.