Model and celebrity Kendall Jenner appeared in the American Forbes 30 under 30 list for the first time last year. Although she is known mainly from television screens and catwalks, she is also trying to break into the world of alcoholic beverages. Will its brand 818 be able to stand out in a market full of competition?
A familiar surname
The famous family of Kardashians and Jenners already has a proven billion touch. The Skims brand, led by Kendall’s sister Kim Kardashian, was last valued at $4 billion. Kylie Jenner’s younger sister, in turn, sold most of her cosmetics brand Kylie Cosmetics in 2020 for $1.2 billion.
In the celebrity-driven premium alcohol business, linking the Kardashian-Jenner name to a bottle of tequila is almost guaranteed success. After all, Jenner and her four sisters have more than 1.6 billion followers on Instagram combined. It was therefore surprising that when Kendall, 28, founded her premium brand called 818, she rebelled against family tradition by launching the brand anonymously.
Quiet branding
In March 2020, the celebrity tequila entered the prestigious World Tequila Awards, where it presented its new Añejo, Reposado and Blanco without a single mention of the founder’s last name. No big launch party and no flashy campaign on Instagram or TikTok (although that came later). The tequila bottles were simply labeled «818» — a reference to the area code of Calabasas, California, where Kendall Jenner was born and raised.
The bottle of 818 Reposado won the main prize, Añejo won the bronze. Almost a year later, by the time Jenner finally announced that she was behind it all along, 818 had already won 16 awards in six competitions. The Kardashian-Jenner PR engine, according to the classic family playbook of using their massive fame as free advertising power, only kicked into gear after that.
Why tequila?
Jenner credits her parents, who she says were frequent tequila drinkers in her childhood. During the pandemic, she did blind tastings for her family and friends, always comparing their favorite tequila to her new product.
«In modeling, I’m part of someone else’s vision,» Jenner told the audience at the Forbes 30 Under 30 Summit in Cleveland in October. «Then I am who they want me to be. Starting my own brand and business was a really great way to get to know myself again.”
Kris Jenner, Kendall’s mom and head of the family, also has high hopes. “Kendall was very independent in this process and really showed me that she’s not only an amazing entrepreneur, but also super smart, incredibly focused, and has an amazing work ethic,” says Kris Jenner, who also invested in 818 herself. Tequila was one of the fastest-growing spirits in 2022 by sales, with sales up about 17 percent ($886 million).
It is based on authenticity
Jenner is assisted with the project by veteran liquor brand manager Mike Novy, whom she lured from rival brand Casa Dragones. The pair first partnered with Mexican distillery La Cofradia, but as the brand grew, they decided to switch to Guadalajara’s Grupo Solave. «Some celebrity brands lack authenticity,» says Novy. «I’m not sure that celebrities actually spark a consumer’s emotional attachment to a brand,» he says. Novy claims that Jenner is fully involved in the 818 project, constantly texting him questions and taking multi-city trips to interact with customers and consumers. Jenner adds, «I’m involved in almost every aspect of the business.»
Similarly, her social networks are also fully involved — Kendall has almost 300 million followers on TikTok and Instagram. With several awards and worldwide fame, it’s no surprise that Jenner sold more than 123,000 cases of 818 alcohol in 2022 (there are six bottles in one), and she expects sales to rise even more in the years to come. A single bottle of 818 starts at $30, while its Eight Reserve Añejo retails for around $150. Jenner refused to comment on sales and her share in the store.
A crowded market
The tequila market is growing and becoming increasingly crowded. A number of established brands such as market leaders José Cuervo, Don Julio and Patron have been selling tequila for decades. In addition, Jenner is far from the only celebrity attracted to this space. The Rock, LeBron James, Bryan Cranston, Aaron Paul, Eva Longoria and Carlos Santana also have their own brands. In 2017, George Clooney sold his Casamigos to Diageo for $1 billion.That’s why Brian Sudano, senior brand partner at data and consulting firm Beverage Marketing Corporation, says the biggest challenge for 818 is to stand out. «Don’t expect a repeat of the Casamigos case,» says Sudano. «We’ve never seen that in history where you’ve had the same success within the same genre of brands or category.»»To successfully capture the US market, a brand needs to sell at least 250,000 boxes,» he explains. To be considered a strong national brand, 818 would need to sell at least 500,000 cases or 3 million bottles. The Teremana brand, which The Rock launched in 2020, announced in April that annual sales had surpassed 1 million cases — a significant jump from the previous year’s figure of 600,000.In 2022, in terms of total sales value, the 818 brand ranked 16th globally and 14th in the US, according to Euromonitor data. But Kendall Jenner’s team is quick to cite another survey, according to IRI’s marketing research data, showing that 818 was one of the top 10 tequila brands in the $25+ price category in 2023.
Brand for Generation Z
Matthew Barry, manager of Euromonitor’s research team, sees potential in 818. She credits her high viewership and influencing a younger audience who want to be like her and drink what she drinks. “The Rock and Kendall Jenner, those two are really the biggest stars,” says Barry. «Kendall is probably the bigger name right now.»Jenner says she’s not worried about the growing competition. «I find it a healthy challenge,» he says. “Of course, we know there are a lot of great tequila brands out there. This only motivates us to be even better.»
