On Tuesday, Tito’s Handmade Vodka announced it reached an agreement to acquire the majority stake in LALO Tequila, one of the fastest-growing tequila brands in the U.S. The deal marks the first strategic acquisition in Tito’s history.

Founded by Eduardo “Lalo” González, David “R” Carballido, and Jim McDermott, LALO rapidly gained a strong fan base for its traditional approach to tequila, using only three ingredients: Highland agave, deep well water from Jalisco’s mineral-rich soil, and Champagne yeast. Initially launched in Texas in January 2020, the Austin-based tequila brand has expanded rapidly in its five years on shelves.

Last year, the tequila brand doubled in size, reaching 155,000 cases in the U.S., and its high-speed growth has only continued. According to data reported in Shanken News Daily, LALO is the fastest-growing upscale brand in 2025 by percentage terms, with the blanco expression leading the way. Known for its clean, approachable flavor profile, the blanco bottling has increased 79 percent by volume and 81 percent by value in NielsenIQ channels year-to-date through Sept. 6. 2025.

“My late father is the namesake of this brand, and I know he would be proud to see how far we’ve come,” González said in a press release. “This moment is a natural continuation of our journey, and we’re excited to introduce LALO to more people across the world while preserving every element that makes us special.”

It’s a brand story that resonated with the Tito’s team because it closely resembles their own. The two iconic brands share a similar heritage: Both are based in Austin and both were founded with authenticity and generational family traditions in mind, which is expected to lead to a synergistic relationship.

“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,” Carballido added.

Tito’s is no stranger to astronomic growth. The vodka brand’s sales catapulted in the late 2010s. By 2019, it had surpassed Smirnoff to become the best-selling spirit in the U.S. Though the brand was dethroned in 2023 by High Noon, it remains one of the best selling vodkas in the U.S. Now, with the new partnership, the Tito’s brand will be able to help grow and share a new story, giving LALO strategic sales support and access to an expanded distribution network to help reach a more global audience.

“At Tito’s, we’ve always said if you’re going to do something, do it well,” Tito Beveridge, founder of Tito’s Handmade Vodka said in the release. “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.”

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