As Kendall Jenner’s 818 Tequila Eyes Chinese Market, International Expansion Becomes Next Frontier for Agave Spirits

Kendall Jenner’s 818 Tequila has proven a hit in China, signaling a potential shift for the tequila industry as it focuses on building international popularity. (Photo: Drink818)

If Kendall Jenner’s 818 Tequila is any indication of the industry at large, China may soon become a lucrative hub for the booming high-end tequila market.

818 recently hit a positive first full year of trading, a remarkable 120,000 nine-liter cases of tequila. While 818 has been an obvious hit across the United States, COO Mike Novy says that the growing Chinese market has proven itself a crucial key to success.

“We took a look at China, and for us specifically with 818, while the size of the Tequila market is certainly not something we’re completely ignoring, we are more interested in the consumer profile of where young, social, dynamic consumers live, work, eat, and enjoy, and we saw that opportunity in China,” Novy told Spirits Business. “And, we’ve really unlocked it.

Historically, China has been a nation of baijiu drinkers, a fermented grain liquor that racked up a staggering $88 billion in sales in 2021 alone.

But tastes may be changing.

Mexican distillers first got interested in the market when the Chinese government lifted its ban on tequila imports in 2008.

Since then, tequila has gradually gained traction in the country, reaching $38.5 million in retail sales when statistics were last released in 2018.

Entering a new market comes with certain concessions to regional tastes. In the United States, it was celebrity-backed brands and aged expressions that really tipped the industry in tequila’s favor over the past decade.

In China, tequila distillers are still experimenting to see what works.

Brands like Cazcabel Tequila and Tequila JG have successfully gained popularity in the market through flavored expressions. Other distillers have gone after dark-liquor-loving brandy drinkers with aged reposado and añejo tequilas.

Celebrity-backed brands have been a huge driver of tequila growth in the US, but other than Kendall Jenner, many of these stars’ appeal is contained largely within the American market.

Most likely, the tequila industry will continue to pursue new flavors and innovations that will help broaden its global appeal.

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