Casa Azul Tequila Soda Is Poised To Make A Splash

Two of the more prominent names in the beverage world have teamed up again, and if their history is any indication, their latest offering, Casa Azul Tequila Soda, could take the alcoholic ready-to-drink (RTD) category by storm. The men behind it, Lance Collins and Mike Repole, have created multiple well-known drink brands that consumers enjoy daily.

Collins was the founder of Fuze and NOS Energy, while Repole founded Glaceau, the home of Smart Water and Vitamin Water, all of which were acquired over the last few decades in billion-dollar deals. Their latest project that they developed together, the sports drink Bodyarmor, was just bought by Coca-ColaKO
for $5.6 billion.

Casa Azul Tequila Soda is designed to act as a disruptor in the highly competitive RTD space, one that has taken off just as the Hard Seltzer wave had started to recede. Packaged in bright blue cans, it’s made with real tequila and checks all the boxes drinkers (primarily Gen Z) have determined are needed to create a “healthy drink.” Its gluten-free, only has 100 calories, is made with natural ingredients, and clocks in at 5% Alc. According to Collins, all those items, plus their unique name, are crucial to its success right out of the gates.

“Gen Z drinkers are trading up and looking for quality. They are starting to leave malt-based seltzers and move into drinks with real spirits in them, and we’re right on trend with that direction,” he says. “That was part of our strategy when formulating our drinks from the beginning. It had to taste great and stand out on the shelf. That’s why we decided to call our product a Soda. It’s a differentiator that both retailers and consumers are looking for; they want something different.”

Backed by a large and diverse group of investors (celebrity, athletic, and traditional) that both men have worked with in the past, the tequila sodas are the first move in a multi-step plan to quickly establish the Casa Azul Spirits brand as a significant player in the tequila space. Fresh on the heels of their cans, they will introduce a line-up of premium tequilas-Blanco, Reposado, and Extra Anejo. The hopes are high that the sodas will establish a beachhead that will allow the entire portfolio to expand quickly.

Rolling out a brand in this manner is counterintuitive but par for the course for the two. Each man made their name, introducing new healthy segments: waters, sports, and energy drinks, to the beverage market.

The rollout of the initial four flavors (Lime Margarita, Peach Mango, Strawberry Margarita, and Watermelon) is being handled by the second largest liquor distributor in the nation, Republic National Distribution Company. The first of 400,000 cases is already hitting the California market, with another 500,000 right behind that as the brand will debut in Nevada, Colorado, Texas, and Florida next. To support the rollout, Casa Azul will rely on the tried and true methods that both men have employed during their past successes. Heavy marketing, an aggressive sales rollout plan, and healthy digital engagement will put the product in front of consumers. From there, it will be up to the liquid to do the rest.

“You know, 50 to 60% of the time, people don’t know what they want to buy when they go to the shelf. So having a disruptive design and making sure it stands out for the crowd of products on the shelf is key,” says Collins. “I’ve done that with every one of my products. It starts with the contents, the product, the strategy, and the packaging. Then you got to make it go. You have to create the push, get the distribution, and then you get the velocity.”