Kendall Jenner’s 818 Tequila: $50M Success Built on Controversy

When Kendall Jenner launched 818 Tequila in May 2021, she stepped into one of the most profitable segments of the spirits industry while walking straight into a firestorm of cultural appropriation accusations. Named after the Calabasas area code where the Kardashian-Jenner family built their empire, 818 Tequila faced immediate backlash for promotional imagery that critics labeled exploitative and disrespectful to Mexican culture.

Yet despite the controversy, 818 Tequila has become one of the fastest-growing celebrity spirits brands in history. The brand sold 136,000 cases in its first seven months, surpassed $25 million in revenue by late 2022, and achieved estimated gross revenues of $45-50 million in 2024 with 40% year-over-year volume growth while the overall tequila category grew just 2%. This is the story of how Jenner navigated one of the biggest celebrity brand controversies of the decade while building a spirits empire projected to hit $55 million in 2025.

The Launch Campaign That Sparked International Outrage

In February 2021, Kendall Jenner teased the launch of 818 Tequila on her Instagram account, revealing she had spent 3.5 years developing the brand through blind taste tests and competitions. The announcement generated massive buzz among her 294 million Instagram followers, but the promotional campaign released ahead of the May 2021 official launch ignited a cultural firestorm.

The Controversial Imagery and Social Media Backlash

The controversial imagery featured Jenner at an agave farm in Jalisco, Mexico, wearing braided pigtails, a cowboy hat, cotton shirt, and jeans while riding a horse through agave fields. To many observers, particularly those in the Latino and Mexican communities, these aesthetic choices crossed a line from appreciation into appropriation. The backlash was particularly intense because it came from the Kardashian-Jenner family, who have a documented history of cultural appropriation accusations.

The social media response was swift and brutal:

• Social media erupted with accusations that Jenner was appropriating Mexican culture for commercial gain without proper respect
• Critics pointed out the sepia-toned filters used in campaign imagery, arguing they perpetuated stereotypical depictions of Mexico
• Twitter user Jackie Mayorga highlighted that the braided hairstyle Jenner wore is often used in anti-indigenous mockery in Mexico
• The campaign was compared unfavorably to her 2017 Pepsi commercial that trivialized the Black Lives Matter movement

The Economic Impact on Mexican Tequila Producers

The backlash intensified when questions arose about worker compensation and whether the agave farmers were being exploited for marketing purposes. Critics argued that Jenner was profiting from Mexican agricultural labor while potentially pushing family-owned distilleries out of business.

Industry experts raised serious concerns about celebrity tequila’s impact on production:

• Agave plants take 8-9 years to fully mature, but increased celebrity demand was forcing distilleries to harvest plants as young as 3-4 years old
• Tequila sommelier Victor Assis explained how celebrity tequilas were changing the production process and potentially degrading the spirit itself
• The 818 brand name references the San Fernando Valley area code with a large Latino population, raising accusations of cultural gentrification
• Many called for consumers to support authentic Mexican-owned tequila brands like La Gritona instead

Jenner initially turned off Instagram comments on campaign posts and remained largely silent as criticism mounted. This silence was interpreted by many as either indifference or an acknowledgment that the concerns were valid but commercially inconvenient. The controversy drew inevitable comparisons to George Clooney’s Casamigos, which didn’t face similar backlash.

The Business Model Behind 818 Despite Controversy

While social media raged with appropriation accusations, 818 Tequila’s business fundamentals revealed a methodical approach that extended far beyond celebrity branding. Jenner partnered with industry veteran Mike Novy, who brought over 25 years of beverage experience from roles at Constellation Brands, E&J Gallo, and Tequila Casa Dragones.

Blind Taste Test Strategy and Award Wins

Before the public launch, Jenner and Novy submitted 818 samples to prestigious spirits competitions completely anonymously. The blind taste tests yielded impressive results: Best Reposado Tequila at the World Tequila Awards, Chairman’s Trophy at the Ultimate Spirits Challenge, and Gold Medals at major international competitions.

The awards proved the product’s quality independent of celebrity status:

• 818 Tequila has won 43 blind tasting awards across 13 international competitions
• The Ultimate Spirits Challenge awarded 818 Añejo a 96-point score, calling it the best in its class
• Production takes place at a family-owned distillery in Jalisco using 100% Blue Weber agaves
• The distillery registration suggests production at La Cofradia, a facility famous for award-winning tequila brands

The initial product lineup consisted of three expressions at premium levels: Blanco at $45, Reposado at $55, and Añejo at $65 per bottle. The brand’s first week saw stores selling out within days. Despite the social media outrage, consumers were actually buying the product in massive quantities.

The explosive first-year sales performance exceeded all projections:

• In the first two months, 818 received orders exceeding forecasts for the first two years of business
• By December 2021, after just seven months, the brand had sold 136,000 cases, making it the best-selling new tequila of 2021
• Revenue in the partial 2021 launch year reached approximately $10 million despite the controversy
• By 2022, sales exploded to $25 million as reported by Forbes, with a 379% year-over-year increase

The sustainability positioning became a key differentiator. 818 partnered with Sacred Agave to create the 818 Bricks Program that converts post-production agave fibers into adobe bricks for building schools and community infrastructure. The brand also achieved B Corporation certification in March 2023.

The Strategic Price Pivot That Unlocked Explosive Growth

By late 2023, despite strong sales and award recognition, 818 Tequila faced a critical business challenge. The brand’s core consumer demographic of Gen Z and younger millennials was providing clear feedback: the $45-65 price points positioned 818 as a special occasion purchase rather than an everyday tequila.

The Quiet Price Reduction Strategy

In February 2024, 818 quietly reduced prices across its entire lineup without announcing the change. Blanco dropped from $45 to $29.99, Reposado fell from $55 to $39, and Añejo decreased from $65 to $49. The company achieved these reductions by renegotiating vendor contracts, leveraging its growth trajectory and expanding global distribution as negotiating power.

The strategic repositioning proved brilliant:

• The pricing strategy repositioned 818 from ultra-premium to super-premium, competing with brands like Teremana and Espolòn
• Mike Novy explained: “We need to listen to our consumers. They’re literally telling us what they want”
• The price reduction was executed quietly to avoid any perception that product quality had declined
• Jenner’s 294 million Instagram followers provided leverage with suppliers willing to bet on the brand

The Dramatic Sales Explosion

The results were immediate and dramatic. The best-selling Blanco expression saw 94% year-over-year sales increase by mid-2024. By January 2024, 818 recorded 65% growth compared to just 9% growth for the overall tequila category, making its expansion 7 times greater than industry averages.

The numbers told an impressive growth story:

• U.S. volume was projected to reach 160,000 cases in 2024, with international sales adding 30,000 cases
• 818’s Blanco generates 55% of total business, followed by Reposado at 35% and Añejo at 10%
• The brand expanded distribution to 13,000 retail doors including 7-Eleven, Kroger, and Target
• In China, 818 became the number-one premium tequila brand, dominating nightlife venues

International expansion accelerated across strategic markets. The UK launch in March 2023 through Selfridges sold out in record time, with sales exceeding projections by 150% within the first 12 days.

Cultural Response and Community Investment Efforts

As 818 Tequila’s commercial success became undeniable, Jenner and the company made deliberate efforts to address cultural criticism through community investment. In September 2021, several months after the initial backlash, Jenner publicly discussed the brand’s giving initiatives.

The Sacred Agave Partnership

The partnership with Sacred Agave expanded significantly, with 818 donating almost $400,000 to support the Bricks Program by 2023. The program converts post-production agave fibers and waste water into sustainable building materials.

The community impact was tangible:

• The Bricks Program built a community library in Zapotitlán de Vadillo, Jalisco using approximately 5,000 adobe bricks
• The library also serves as supplemental classroom space for the local community
• A “Plaza de la Comunidad” gathering space for religious festivals was constructed using the same methodology
• The “Buy a Bottle, Give a Brick” campaign enables ongoing infrastructure projects

B Corporation Certification

The B Corporation certification achieved in March 2023 represented a significant commitment to accountability. Only 40% of companies that submit B Impact Assessments earn certification.

The certification brought third-party validation:

• The certification positioned 818 among a select global community of purpose-led companies
• Environmental commitments extend from agave cultivation through bottle production
• The brand maintains partnerships with OUT for Sustainability and other responsible business organizations
• 818 continues working directly with local, family-owned farms in Jalisco

Despite these investments, critics maintain that no amount of corporate social responsibility fully addresses the fundamental appropriation concerns. The debate continues about whether non-Mexican celebrities should enter the tequila market regardless of quality or community investment.

Marketing Innovation and Gen Z Cultural Penetration

Beyond traditional celebrity endorsement strategies, 818 Tequila deployed innovative marketing tactics designed to resonate with Gen Z and younger millennial consumers. The approach involved trendy collaborations, experiential marketing, and organic social media growth.

Strategic Brand Collaborations

In February 2024, 818 launched a collaborative “Pasta Alla Tequila” kit with Rao’s Specialty Foods. The partnership tapped into Valentine’s Day timing and the growing trend of at-home cooking. In May 2024, 818 partnered with Chamberlain Coffee to create an espresso martini kit that sold out in just 4 hours.

The collaborations demonstrated smart cultural positioning:

• The Rao’s collaboration challenged perceptions that tequila is only for margaritas and shots
• Both collaborations featured teaser videos highlighting drink trends and genuine friendships
• The rapid sellouts demonstrated powerful cross-brand appeal among young consumers

Sports and Campus Engagement

The brand also pursued unconventional sports partnerships. In 2024, 818 announced its first national sports partnership with NASCAR driver Toni Breidinger and embarked on a college campus tour.

The organic social media traction proved the strategy worked:

• 818 is the most talked-about tequila brand on TikTok despite having no official presence on the platform
• The brand is the top-followed tequila on Instagram with 1.2 million followers
• In September 2024, 818 introduced miniature bottles designed as wearable bag charms

The December 2025 Holiday Surprise Box demonstrated continued innovation. Priced at $81.80 and containing over $400 in retail value, the limited-edition offering tapped into holiday gifting and Cyber Monday shopping.

The Premium Portfolio Expansion and Eight Reserve Launch

As 818 solidified its position in the super-premium segment, the brand pursued upmarket expansion with Eight Reserve by 818 in August 2022. This ultra-premium Añejo Reserve retailed at $200 per bottle, targeting collectors willing to pay for painstakingly crafted tequila.

Multi-Tier Portfolio Strategy

The Eight Reserve launch represented strategic portfolio segmentation. While core offerings targeted Gen Z everyday consumption at $29.99-49, Eight Reserve positioned the brand alongside luxury spirits.

The dual-tier approach maximized market coverage:

• The luxury expression undergoes extended aging in oak barrels, developing complex flavor profiles
• Eight Reserve allows 818 to maintain presence in the $45+ premium category
• The brand employed 42 people by August 2022, many in sales functions
• Distribution focused on deepening penetration with secondary accounts

Product Innovation and International Growth

In 2024, 818 introduced 375ml sizes of Blanco and Reposado, responding to retailer feedback that half-bottles have become the entry-level format for Gen Z consumers.

The innovation pipeline continues to evolve:

• There’s significant demand for premium 375ml formats, with retailers actively requesting smaller sizes
• The brand maintains a full innovation pipeline for future releases
• 818 is exploring the ready-to-drink category, with insights from sister brand Sprinter informing RTD strategy
• The Kardashian-Jenner family co-invests in each other’s businesses, providing strategic knowledge sharing

International expansion remains a major growth driver, with 818 now available in 24 countries including Canada, Australia, China, Dubai, and multiple European markets. Approximately 30-35% of international business comes from Asia.

Financial Performance and Valuation Trajectory

The financial trajectory of 818 Tequila tells a story of rapid scaling that has exceeded industry expectations. From approximately $10 million in partial-year 2021 revenue, the brand grew to $25 million in 2022, an estimated $35-40 million in 2023, and $45-50 million in 2024.

Revenue Projections and Jenner’s Stake

Looking ahead to 2025, 818 is forecasted to achieve gross revenues of $55 million or more. Premium tequila brands typically operate at 20-30% profit margins, suggesting 818 generates approximately $11-13.75 million in annual profit.

The ownership stake translates to substantial earnings potential:

• Industry experts estimate Kendall Jenner’s ownership stake at 30-50% of 818 Tequila
• At 30-40% ownership, Jenner’s annual take-home from 818 could range from $3.3-5.5 million in 2025
• If 818 were acquired at valuations typical for fast-growing spirits brands, estimates suggest $300-600 million
• A sale at that valuation could net Jenner personally $90-240 million

Strategic Investment and Leadership Changes

In September 2024, 818 received new strategic investment from Grupo Solave, the Mexican producer that has manufactured the tequila since launch. Simultaneously, parent company Calabasas Beverage Company appointed Larry Goodrich as new CEO.

The organizational changes reflected market realities:

• The Calabasas Beverage Company serves as a commercial front end representing both 818 and Sprinter
• The structure is owned fifty-fifty by both businesses, harmonizing sales and marketing functions
• 818 has slowed hiring and pulled back some marketing spending as the tequila market normalizes
• Despite market headwinds, 818 achieved 41% volume sales growth as of November 2024

The brand’s success has positioned it as the 10th best-selling tequila in the U.S. in the over $24 category. In the crowded celebrity spirits market, 818 ranks among the most successful launches despite facing significantly more controversy than competitors.

The Bottom Line: Controversy, Compromise, and Commercial Success

Kendall Jenner’s 818 Tequila represents one of the most contradictory success stories in recent celebrity business ventures. The brand has achieved remarkable commercial success, growing from $10 million in launch-year revenue to projected $55 million+ in 2025. The 40% year-over-year volume growth demonstrates genuine product-market fit.

Yet the cultural appropriation controversy that erupted at launch has never fully resolved. Critics maintain that Jenner’s entry into tequila production represents a privileged outsider profiting from Mexican cultural heritage regardless of subsequent community investments.

The tension between commercial success and cultural sensitivity reveals broader questions:

• Should non-Mexican celebrities enter the tequila market at all, even with quality products?
• Does subsequent charitable giving address initial appropriation concerns, or is it damage control?
• Can blind taste test awards override questions about who has the right to profit from cultural products?
• Why did George Clooney’s Casamigos face minimal backlash while Jenner’s launch ignited a firestorm?

818’s trajectory suggests that commercial success and cultural controversy can coexist. Consumer purchasing decisions ultimately prioritize product quality, pricing, and celebrity association over appropriation concerns. The brand’s sustainability certifications demonstrate genuine commitment, though critics argue this should have been the starting point.

What’s undeniable is that 818 has achieved the business objectives any startup founder would envy. The brand employs dozens of people, has donated hundreds of thousands of dollars to Mexican communities, and has introduced many Gen Z consumers to premium tequila.

Whether that commercial success justifies the cultural dynamics remains a question each consumer must answer. For Jenner, the answer appears to be measured in revenue growth and the potential for a massive exit that could net her $90-240 million.

For critics, no amount of profit erases the fundamental appropriation:

• Jenner built a $50M revenue brand in four years despite massive controversy
• 818 outperforms the tequila category by 14x in volume growth
• Community investments total nearly $400K but came only after backlash
• The controversial launch imagery remains a permanent part of the brand’s history
• Consumer purchasing suggests quality and price matter more than cultural criticism

The conversation continues, and so do the sales.

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