Diageo plc, London, announced it has acquired 21Seeds, a rapidly growing flavored tequila infused with the juice of real fruits. The brand is available in three varieties: Valencia Orange, Grapefruit Hibiscus and Cucumber Jalapeño.

21Seeds was founded in 2019 by three female entrepreneurs whose vision was to create great-tasting, smooth spirits with light touch flavor that are easy to mix and enjoy, it says. The founders ― Kat Hantas, Nicole Emanuel and Sarika Singh, who have also been operating the business ― will continue to actively work on 21Seeds, collaborating closely with the Diageo North America team and helping to build further on the brand’s success.

21Seeds is a fast-growing flavored tequila infused with the juice of real fruits. Taking inspiration from the tequila cocktails the founders long enjoyed making for themselves and their friends, the brand has successfully tapped into a variety of consumer trends such as flavored tequila, simple at-home cocktails, and an interest in quality premium spirits, it says. And with an ABV of 35%, each variant can be mixed into easy-to-make, spritz-style cocktails such as the brand’s signature serve, the ‘Seed and Soda’.

In the United States, the tequila category is growing at 16%, more than three times as fast as total spirits, based on IWSR, 2020: 2019-2020 volume. Within the category, the small but emerging flavored tequila segment grew over 20% from 2019 to 2020, with super-premium flavored tequila growing 65% over the same period, based on IWSR data.

“21Seeds is one of the fastest-growing brands in the increasingly popular flavored tequila segment and we are delighted to welcome it into our tequila portfolio,” said Debra Crew, president of North America, in a statement. “This acquisition is in line with our strategy to acquire high growth brands in fast growing categories. It is particularly special to me given Diageo’s longstanding commitment to champion inclusion and diversity, and we look forward to working with this dynamic trio of female entrepreneurs to continue growing 21Seeds.” 

Hantas, 21Seeds co-founder added: “We created 21Seeds because, quite simply, it’s what we wanted to drink ― something casual that made drinking tequila cocktails as approachable as a glass of wine or beer. It’s been a thrill to watch consumers embrace our brand, and we are excited about the future for 21Seeds with Diageo’s resources and capabilities behind it.”

The acquisition has been funded through existing cash resources.