Lobos 1707 Company Profile

Background

Lobos 1707 is an independent spirits producer specializing in premium tequila and mezcal. Founded in 2020 by Diego Osorio, who serves as the Chief Creative Officer, the company draws inspiration from a centuries-old distillation process. The brand's name, "Lobos," meaning "wolves" in Spanish, symbolizes unity and community, reflecting the company's mission to "build a bigger table" where everyone is welcome. This ethos is further emphasized by the involvement of cultural icon LeBron James as an early investor, underscoring the brand's commitment to inclusivity and shared experiences.

Key Strategic Focus

Lobos 1707 focuses on blending heritage and innovation to create unique, high-quality spirits. The company's core objectives include:

Product Excellence: Crafting tequilas and mezcals that honor traditional Mexican distillation and aging processes while incorporating modern techniques.

Cultural Representation: Celebrating and promoting the rich cultural heritage of Mexico and Spain through their products.

Market Expansion: Establishing a strong presence in both domestic and international markets, with a particular emphasis on North America.

The primary markets targeted by Lobos 1707 include the United States, Canada, Mexico, and the United Arab Emirates, with products available in over 11,000 points of distribution.

Financials and Funding

Since its inception, Lobos 1707 has attracted significant investment from notable figures, including LeBron James, who, along with his partner Maverick Carter, invested in the company due to the quality of the product and the opportunity to build a strong consumer brand with diverse leadership. Other investors include Anthony Davis, Draymond Green, and Rich Paul. The company has experienced rapid growth, distributing close to 100,000 9L cases since its launch.

Product Portfolio

Lobos 1707 offers a range of premium spirits, each reflecting a commitment to quality and tradition:

Joven Tequila: Carbon-filtered and finished in Pedro Ximénez (PX) sherry wine barrels using the solera method, resulting in a mature flavor profile.

Reposado Tequila: Aged for over six months in American white oak barrels, blended with a touch of Extra Añejo, and finished in PX sherry wine barrels.

Extra Añejo Tequila: Aged for three years in American white oak barrels and finished in PX sherry wine barrels, offering complex flavors of sweet citrus, aged wood, tobacco, and notes of roasted coffee and cocoa.

Mezcal Artesanal: Made from 100% Espadín agave roasted in an open fire pit, ground in an Egyptian stone mill, producing a smoky yet smooth liquid with a subtle spice.

Limited Edition Añejo Tequila: Aged for 12-18 months in American white oak barrels, then finished in PX sherry wine barrels, presenting a multi-layered flavor profile with notes of walnuts, caramel, and vanilla.

Technological Platform and Innovation

Lobos 1707 distinguishes itself through its unique aging process, which involves finishing their spirits in PX sherry wine barrels using the solera method—a technique that blends different aged liquids to achieve a consistent flavor profile. This approach marries traditional Mexican distillation methods with Spanish aging techniques, resulting in a distinctive and elevated flavor profile.

In 2024, the company partnered with Modern Data Company to implement the DataOS platform, enhancing sales and marketing efficiency. This collaboration led to a 45% increase in depletions on new accounts, a 19% increase in depletions per order, and a 51% reduction in order cycle time, demonstrating the company's commitment to leveraging technology for business optimization.

Leadership Team

Lobos 1707 is led by a team of experienced professionals:

Diego Osorio: Founder and Chief Creative Officer. Osorio brings a deep appreciation for heritage and innovation, drawing inspiration from his ancestor's distillation practices dating back to 1707.

Dia Simms: Executive Chairwoman of the Board. Simms transitioned from her role as CEO in August 2023. She has a reputation for driving innovation and diversity, having developed some of the largest global brands, including building a billion-dollar valued spirits brand.

Carlos Vigil: President and Chief Operating Officer. Vigil joined Lobos 1707 in August 2023, bringing over 15 years of executive leadership experience from Southern Glazer's, where he led the company's commercial and digital transformation across sales, service, and eCommerce.

Leadership Changes

In August 2023, Dia Simms transitioned from her role as CEO to Executive Chairwoman of the Board. Carlos Vigil was appointed as President and COO, bringing extensive experience from his tenure at Southern Glazer's.

Competitor Profile

Market Insights and Dynamics

The global tequila and mezcal market has experienced significant growth, driven by increasing consumer interest in premium and craft spirits. The market is characterized by a blend of traditional brands and new entrants aiming to capture the evolving preferences of consumers seeking authenticity and quality.

Competitor Analysis

Key competitors in the premium tequila and mezcal segment include:

Patrón Tequila: Renowned for its handcrafted production process and extensive product range, Patrón has established a strong presence in the premium spirits market.

Casamigos Tequila: Co-founded by George Clooney, Casamigos emphasizes smoothness and versatility, appealing to a broad consumer base.

Clase Azul: Known for its distinctive ceramic bottles and artisanal production methods, Clase Azul targets the ultra-premium segment.

These competitors focus on high-quality production processes, unique branding, and strong market presence, posing challenges to new entrants like Lobos 1707.

Strategic Collaborations and Partnerships

Lobos 1707 has engaged in strategic partnerships to enhance its market position:

Southern Glazer's Wine & Spirits: In April 2021, Lobos 1707 signed a national alignment agreement with Southern Glazer's, the world's preeminent distributor of beverage alcohol. This partnership aims to accelerate growth by leveraging Southern Glazer's national scale and brand-building expertise.

Modern Data Company: In October 2024, the company partnered with Modern Data Company to implement the DataOS platform, enhancing sales and marketing efficiency through data-driven decision-making.

Operational Insights

Lobos 1707's strategic considerations include:

Product Differentiation: Utilizing the unique aging process involving PX sherry wine barrels and the solera method to create distinctive flavor profiles that set the brand apart.

Brand Storytelling: Emphasizing the rich heritage and cultural significance behind the brand to resonate with consumers seeking authenticity.

Market Expansion: Focusing on expanding distribution channels and entering new markets to increase brand visibility and accessibility.

Strategic Opportunities and Future Directions

Lobos 1707's strategic roadmap includes:

Product Innovation: Continuing to develop new expressions and limited editions to cater to evolving consumer tastes.

Global Expansion: Building on existing international presence to enter additional markets, leveraging partnerships and distribution agreements.

Sustainability Initiatives: Implementing environmentally friendly practices in production and packaging to appeal to eco-conscious consumers.

By capitalizing on its unique heritage, innovative production methods, and strategic partnerships, Lobos 1707 is well-positioned to achieve its future objectives in the competitive spirits industry.