George Clooney’s Tequila Brand Loses $230M After State Tax Crackdown

George Clooney’s tequila brand, **Casamigos**, is facing a significant financial blow, with the company reporting a **$230 million loss** linked to a newly implemented tax policy in **New Mexico**. The premium tequila brand, which Clooney co-founded in 2013 and sold to the beverage giant Diageo for nearly $1 billion in 2017, had been a major success in the U.S. market. Its smooth, high-quality tequila, coupled with Clooney’s star power, made it one of the most popular choices among tequila drinkers. However, recent tax changes in New Mexico have posed an unexpected challenge, putting considerable strain on the brand’s finances.

The new tax, introduced as part of New Mexico’s plan to increase state revenue, specifically targets alcohol manufacturers and distributors. While designed to boost state income, the tax has created difficulties for companies like Casamigos, which rely heavily on U.S. distribution networks, including New Mexico, to reach customers. The new financial burden has not only hurt the brand’s bottom line but has also sparked debate about the broader impact of such tax policies on small and mid-sized companies in the alcohol industry.

Casamigos had been enjoying rapid growth in recent years. The brand, known for its smooth, high-end tequila, gained immense popularity among consumers, particularly those seeking premium spirits. Its market success was largely fueled by its celebrity founders, with Clooney’s name serving as a key marketing tool. In addition, the rise of the “craft spirits” movement had positioned Casamigos as a brand that stood out in a crowded market. Its tequila was marketed as an artisanal product made with high-quality ingredients, appealing to both tequila enthusiasts and those new to the spirit. However, the new tax in New Mexico has hit the brand hard, leading to the reported $230 million loss.