Michael Jordan's Cincoro Tequila Makes New Play For Luxury Market

They’re rivals on basketball’s biggest stage. But when it comes to tequila, they’re friends. Cincoro, the label created by five National Basketball Association (NBA) team owners, including Hall of Famer Michael Jordan, on Wednesday announced a new blend of its award-winning tequila.

Photo Insert: Michael Jordan is joined in the venture by Los Angeles Lakers owner Jeannie Buss, Wes Edens of the Milwaukee Bucks ownership group, and Wyc Grousbeck and Emilia Fazzalari of the Boston Celtics.

Cincoro Gold, geared toward the luxury market, will be available in limited quantities come October and sell for $349.99 a bottle. It’s Cincoro’s fifth blend, Jessica Golden reported for CNBC.

Jordan himself is promising no less than “the world’s finest tequila” – strong words from the man often referred to as the world’s greatest basketball player.

“While the tequila space may be crowded, we are fierce competitors and our portfolio reflects our passion and commitment to produce truly delicious and exceptional expressions,” the Charlotte Hornets owner told CNBC.

He’s joined in the venture by Los Angeles Lakers owner Jeannie Buss, Wes Edens of the Milwaukee Bucks ownership group, and Wyc Grousbeck and Emilia Fazzalari of the Boston Celtics.

It started to come together in 2016, when Jordan, Buss, Edens, Fazzalari and Grousbeck had dinner plans in New York City ahead of NBA meetings. While waiting for their table, the owners discovered they had more than just basketball in common. They also shared a love of tequila.

In just three years, according to Cincoro, the label has sold 1.5 million bottles nationally and won 23 awards in accredited spirit competitions. Fazzalari said the tequila is in every major hotel chain, leading restaurant groups, and many independent liquor stores across the country.

“Our strategy is to grow our distribution in the United States and then look abroad,” she added. While brands like Cuervo, Patron, Don Julio, and George Clooney’s Casamigos control the majority of the market, IWSR Drinks market research data shows that Cincoro is a top-20 brand in terms of retail value contribution to the tequila category.

“The top 10 tequila brands in the US make up nearly 70% of the category value, so it’s very concentrated. The remaining 30% is allocated across dozens of smaller brands, one of which is Cincoro,” said Brandy Rand, IWSR’s Chief Strategy Officer.

So far, Cincoro is proving to be a good investment for the owners, as the spirit has become more popular.

Tequila is one of the fastest-growing spirits categories in the U.S., according to IWSR. Last year, total volume grew by almost 17% and value grew by more than 27%. Super premium-and-above tequila category – brands in the $30+ price band – are experiencing even larger growth, with volume growing by 36.5% last year and by almost 40% in value.

By the end of next year, tequila is poised to become the largest spirits category in the U.S. in terms of value. Jordan and his friends may be on to something. Tequila brands with celebrity connections have seen rapid success.

According to IWSR, celebrity tequilas surged at a compound annual growth rate of over 50% between 2016 and 2021, bringing $1.9 billion in global revenues during 2021 alone.

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