Texas-based Tito’s Handmade Vodka has taken a majority stake in Lalo Tequila, marking its first strategic acquisition.

Austin-based Lalo, co-founded by Eduardo ‘Lalo’ González, David ‘R’ Carballido, and Jim McDermott, made its debut in 2020.

The brand only produces blanco expressions of the spirit, which is crafted with three ingredients: fully matured Highland agave, deep well water also from Jalisco, and Champagne yeast.

According to Nielsen data from May 2024, Lalo is one of the top 10 fastest-growing spirits in the US, having doubled in size in 2024 to reach 155,000 case sales across all 50 states.

Furthermore, Lalo is reported to be the fastest-growing upscale brand in the US in 2025, with its blanco bottling posting volume and value gains of 79% and 81% respectively in NielsenIQ channels year-to-date through 6 September.

Under the deal, Lalo will gain access to Tito’s expanded distribution network and strategic sales support, as it looks to scale to the brand globally.

Besides their Austin heritage, the two brands share a similar identity in focusing on clean flavours and ‘resisting industry trends’, and much like Tito’s early days in Austin, Lalo is said to have grown organically through word-of-mouth.

The partnership has been described as being ‘entrenched in mutual respect’ and has been structured to allow both companies to stay focused on ‘making exceptional products’.

Tito Beveridge, founder of Tito’s Handmade Vodka, said: “At Tito’s, we’ve always said if you’re going to do something, do it well. I’ve known the Lalo founders for a long time. They care about the juice. They keep it simple. They do things the right way, not the flashy way. That felt like home to us.”

McDermott added: “Tito has been a close friend in Austin for years and has deeply influenced the way we approach what we do. Our two companies are stronger together and we’re excited to continue this journey with the full support of a company that understands what it means to grow with a singular focus.”

Carballido said: “This partnership gives us the chance to share the beauty of Mexico with the world, inviting more people to experience our country while staying true to our living Mexican legacy.”

González will continue to steward Lalo’s production after the deal is finalised, allowing him to ‘carry on his family’s legacy and the Tequila’s integrity for generations to come’.

The transaction is subject to customary closing conditions, including required regulatory approvals. It is anticipated to close in the near future.

Earlier this month, the brand released a second high proof version of its blanco expression to showcase Tequila in its purest form.