Su Casa Mezcal

Tequila, vodka, and whiskey all sell tens of billions of dollars annually. What's the next big category to watch? Mezcal Here's why: Tequila had a meteoric last decade of growth. It's become one of the best selling spirits in the world. You can now find a tequila cocktail on just about every cocktail menu in America. The American (and global) consumer have become infatuated with agave-based spirits. And hundreds of brands have launched in the space and invested hundreds of millions in marketing and brand awareness. Importantly- most fans of tequila can name at least a few of their favorite brands. Casamigos, Patron, Don Julio, and so many others have largely become household names. And as millions of consumers have become accustomed to tequila, they've begun seeking out new flavors and extensions to explore. Mezcal is an obvious and easy next category for them to try. Mezcal and tequila have many similarities. In fact, by definition, tequila is technically a mezcal- one that's just harvested and distilled in a specific region of Mexico. The flavor profile is pretty similar, mezcal is just much smokier. But unlike tequila, most consumers can't name many (if any) mezcal brands. There are a decent amount of brands out there, and many more launching, but none have become a household name (yet). The category is somewhat fragmented. Mezcal is expected to grow at a double digit CAGR for the next 10 years. The category will be worth billions in the US alone in the coming years. And yet there are few, if any, brands that are household names. This is a massive opportunity. As the market matures, I expect we'll continue to see mezcal brands find new and innovative ways to position themselves and win customers. The category has massive tailwinds, so brands will have an opportunity to grab a share of a growing pie. For the brands that are able to establish themselves as one of a few known favorites in the growing mezcal category, the payoff has the potential to be massive. As an investor, mezcal is one of the categories I'm watching most closely and most excited to see how it plays out. The next 3-5 years will be huge for the category and I predict we'll start to see some acquisitions in the space. Exciting times for mezcal.

Huge congratuations to Merrilee Kick and Buzzballz, LLC / Southern Champion on a job well done! Cheers!