US-based Ole Smoky Distillery has entered the Tequila sector through a “merger” with Tanteo Spirits.

Tennesee-based craft distiller Ole Smoky has diversified its portfolio through the deal, without disclosing financial details.

New York-based Tanteo, which was founded in 2007, sold more than 70,000 cases of its infused Tequila products, alongside Blanco and Espero variations, last year. The company distills in partnership with Distilladora Juanacatlan, a cooperative of more than 70 agave growers in Mexico.

Tanteo CEO Neil Grosscup alongside the rest of the management team will stay on at the merged company, working in collaboration with the team at Ole Smoky.

“Tanteo was created to perfect the spicy margarita through its artisanal infusion process, use of real peppers, and commitment to doing things the right way,” said Grosscup. “We are thrilled to join the Ole Smoky team and look forward to taking the brand to new heights while maintaining the high standards that our loyal consumers expect.”

“Ole Smoky continues to be one of the fastest-growing spirits brands in the country,” Robert Hall, the CEO of Ole Smoky, said. “The addition of Tanteo to our portfolio further exemplifies the quality and reputation that we pride ourselves on, and we are excited to leverage our resources to introduce the Tanteo brand to even more consumers across the country.”

Just Drinks has contacted both companies for further details about the deal.

Whiskey and moonshine producer Ole Smoky secured investment in September from Patricof Co (P/Co), a vehicle that sees several high-profile US athletes back the distiller.

The company operates a distillery in Gatlinburg, Tennessee that is also open to the public, which attracted roughly five million visitors in 2021.