Alcoholic makers, Beam Suntory and Boston Beer (NYSE: SAM), have formed a partnership to expand various iconic brands into new categories.
Through the agreement, the companies intend to initially launch products that place the Sauza tequila brand into the ready-to-drink beverage category (RTDs), as well as bring Truly Hard Seltzer into bottled spirits. The first new products are set to launch in mid-2022, with the company planning to expand into more brands in the future.
“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 Co. “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.”
Burwick and Beam Suntory CEO Albert Baldi have a work history that deems beneficial to the current deal. The two men collaborated while at PepsiCo almost two decades ago and assure that the trust they have for each other is an asset to the partnership.
“I gave Albert a call as we saw the category change, consumer shifts, so I thought it might be a good idea to call over at Beam Suntory to see if there might be ways we could collaborate,” Burwick told CNBC.
Financial details regarding the agreement have yet to be disclosed. Nevertheless, Baldi revealed that it is a “fully integrated partnership” that surpasses a simple licensing deal.
“We’ll have strategic reviews, innovation reviews, all of that good stuff,” he said. “We’ve got teams that will be joined at the hip as we move forward.”