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A little more than five years after selling Patrón Tequila for $5.1 billion, billionaire John Paul DeJoria is back in the spirits business with a new goal: gin.
DeJoria, who is also the founder of Paul Mitchell hair care, is gearing up for an aggressive national expansion of Waterloo Gin, a Texas-based premium spirits brand she purchased for an undisclosed amount in 2024. The brand plans to be in more than 20 states by the end of the first quarter of 2026 and then go national by the end of the year.
“(It’s) an aggressive goal, but we think we have the brand, the support, the ownership group to do it and the leadership team to get us to the promised land very quickly,” Bob MacNevin, Waterloo’s chief commercial officer, told reporters.
Although alcohol consumption in the U.S. is at an all-time low, opportunities remain in the premium spirits sector. Premium gin prices are expected to increase by 3% between 2023 and 2028, according to IWSR. Super-premium and ultra-premium options will increase by 10% and 12%, respectively.
Gin is also experiencing a renaissance in bars and other establishments, with tasty cocktails like Negronis making a comeback. McNevin said alcohol was the only major distilled beverage to post on-premise growth in the U.S. last year, outpacing tequila, whiskey and vodka.
Spirits manufacturers have found success targeting younger consumers with boutique gin brands and innovative flavors, ISWR said. Waterloo hopes to showcase two trends as it looks to expand nationally. Waterloo has recently undergone extensive pavement replacement. They also introduced a new Prickly Pear & Rose flavor.
“Younger consumers, millennials and Gen Z are drinking less but drinking better before prioritizing quality over quantity,” MacNevin said.
Waterloo also sets itself apart from European gin makers by focusing on botanicals. Unlike London Dry, the brand doesn’t use juniper berry as a core ingredient, but instead emphasizes floral and citrus notes, including Texas grapefruit or Texas lavender.
MacNevin said Waterloo represents one of the few innovators within the gin category over the past five years. In addition to the bramble notes, Waterloo also has a standard gin and a barrel-aged gin aged for two years in American white oak barrels for herbal notes.
As Waterloo continues to expand its operations, the brand is urging consumers to rethink their relationship with gin. For many people, this drink is associated with the taste of dusty gin and tonics or heavy ethanol.
“Younger people who are just coming into gin now have no idea how bad it used to be,” MacNevin said. “We are different. There is nothing on the market today like prickly pear, rose, barrel-aged products.”
