September brought a blend of strategic consolidation and legislative momentum across the beverage alcohol industry, as established brands pursued growth through acquisition while regulatory landscapes evolved to expand market access. The month was highlighted by Tito’s Handmade Vodka’s landmark first acquisition of LALO Tequila and Gallo’s continued pursuit of Gen Z consumers through its acquisition of Whiny Baby. Meanwhile, regulatory wins in three states opened new direct-to-consumer pathways for wine producers. Below is Park Street University’s full recap of the top stories for the month of September.
Tito’s Handmade Vodka to Acquire Majority Stake in LALO Tequila
Tito’s Handmade Vodka has reached an agreement to acquire a majority stake in LALO Tequila, one of the fastest-growing tequila brands in the U.S., marking the first strategic acquisition in Tito’s history. Co-founded by Eduardo “Lalo” González, David Carballido, and Jim McDermott, LALO produces blanco tequila using only three ingredients—fully mature Highland agave, deep well water from Jalisco, and champagne yeast—and has built a loyal following through organic, word-of-mouth growth similar to Tito’s early days in Austin. The partnership will provide LALO with strategic sales support and expanded distribution to accelerate its global reach while González continues to oversee production. (Source)
Gen Z Wine Brand Whiny Baby Acquired by Gallo
Gallo has acquired Whiny Baby, a California-born wine brand launched in 2022, specifically targeting legal-age Gen Z drinkers, with 6,000 cases sold in 2024 and projected to double sales in 2025. Founder Jess Druey will remain as head of Whiny Baby and also consult for Gallo on consumer innovation. Whiny Baby gained early traction through its distinctive branding, targeting legal-age Gen Z consumers who often feel disconnected from traditional wine culture. This acquisition reflects Gallo’s ongoing portfolio adjustments in response to market challenges and shifting wine consumption patterns. (Source)
Alcohol Industry Braces for Government Shutdown
Congress faced a midnight deadline on September 30 to pass stopgap funding legislation or trigger a government shutdown. The House approved extending funding through November 21, but parties in the Senate remained deadlocked as the deadline expired. A shutdown would temporarily suspend critical Alcohol and Tobacco Tax and Trade Bureau (TTB) services, disrupting label and formula approvals, brewer’s notices, and permit processing. Small Business Administration loan approvals would also stall. Beverage alcohol suppliers may contact lawmakers to stay engaged and bring awareness to potential business impacts. (Source)
Three States Revamp Their DtC Wine Shipping Laws
Mississippi, Arkansas, and Delaware each enacted direct-to-consumer wine shipping legislation in 2025. Mississippi now allows domestic wine producers to ship up to 12 cases annually per household, requiring ABC licensing, sales tax collection, and a 15.5% markup. Arkansas has removed its in-person purchase requirement, expanding the annual limit to 24 cases per person. Compliance remains complex due to dry/wet township restrictions requiring address verification against state maps. Delaware’s new law still presents significant barriers, including $3,600 licensing fees, a 1,800-case annual limit, and prohibitions against wineries with existing wholesale relationships. (Source)
Diageo Pauses Production at Balcones and George Dickel
Diageo has temporarily halted whiskey production at its Balcones distillery in Waco, Texas, and George Dickel’s Cascade Hollow facility in Tennessee through June 2026, resulting in 17 job losses at Balcones while George Dickel saw no job cuts. The moves are part of Diageo’s broader operational efficiency strategy, with the company stating it’s “ahead of schedule” on production volumes and will use the pause for strategic projects, training, and maintenance, while visitor centers remain open. The production halts extend to Diageo’s Scottish distillery Teaninich, as the company pursues an expanded $625 million cost-cutting program. (Source)
Campari Group Names New CFO
Paolo Marchesini will step down as Chief Financial and Operating Officer of Campari Group after nearly three decades with the company, transitioning to Vice Chairman of the Board for a three-year term starting in the fourth quarter of 2025. During his 28-year tenure, beginning in 1997, Marchesini—Campari’s first CFO, who later assumed COO responsibilities, oversaw the acquisition and integration of 40 businesses and the divestment of 12 non-core brands. As a result, the company’s share price grew more than seven times, and its annual shareholder return reached 10.1%. Francesco Mele, who joins from his role as Chief Investment Officer at Italian bank Cassa Depositi e Prestiti, and previously worked with Campari as an advisor on its Aperol acquisition in 2003, will take over as CFO, while CEO Simon Hunt will assume responsibility for global supply chain operations. (Source)
Diageo Sells Sheridan’s to Casa Redondo
Portuguese spirits company Casa Redondo has acquired Sheridan’s coffee and cream liqueur from Diageo, just over a year after purchasing Safari liqueur from the same company in July 2024. The acquisition of Sheridan’s, which is available in more than 50 markets with strong European presence and presented in a distinctive dual-chamber bottle, represents a significant step in Casa Redondo’s international growth strategy and adds to a portfolio that includes Licor Beirão, Amarguinha, FoxTale Gin, and Per Se apéritif. The deal is part of Diageo’s ongoing strategy to divest non-core brands and focus on its core strengths, following recent sales of Cacique rum to La Martiniquaise-Bardinet and Pampero rum to Gruppo Montenegro. Meanwhile, Casa Redondo plans to invest in new talent and resources in key international markets to support the integration. (Source)