El Hempe Spirits Secures Strategic Investment from SETO Holdings to Fuel National Expansion of RTD Beverage Brand
El Hempe Spirits, the Oregon-based producer of terpene-infused tequila cocktails and hemp-adjacent ready-to-drink beverages, has secured a strategic investment from SETO Holdings, providing the company with additional resources to accelerate growth, expand distribution, and scale production capabilities across the United States.
The investment was announced in March 2026 as part of a broader strategic integration agreement between the two companies. Under the transaction, SETO Holdings acquired a minority equity interest in El Hempe through a combination of preferred equity and a Simple Agreement for Future Equity (SAFE). The deal establishes a framework for El Hempe to leverage SETO’s beverage platform while maintaining its brand identity and operational independence.
Founded in 2019, El Hempe has built its brand around premium ready-to-drink cocktails that combine tequila with terpene profiles inspired by cannabis culture. The company markets terpene-enhanced tequila beverages and hemp-derived Delta-9 THC ready-to-drink products in jurisdictions where such products are permitted. The company has positioned itself at the intersection of premium spirits, functional beverages, and emerging cannabis-adjacent consumer trends.
The investment represents a significant step in El Hempe’s expansion strategy. Through the partnership, the company gains access to SETO Holdings’ distribution infrastructure, sales capabilities, and beverage industry network. The agreement is designed to support national growth while increasing retail placement opportunities across grocery, convenience, hospitality, and beverage alcohol channels.
According to the companies, El Hempe will be integrated into SETO’s operational ecosystem while retaining creative control over its products and brand direction. The collaboration is intended to improve supply-chain efficiency, enhance market access, and create opportunities for future product innovation. El Hempe CEO Tony Bash said the partnership would enable the company to expand its reach without compromising the culture and vision that have defined the brand since its launch.
A key component of the agreement involves manufacturing. El Hempe operates an Oregon-based ready-to-drink production facility with monthly capacity exceeding 800,000 units. Through the partnership, SETO and its affiliated beverage brands will gain preferred access to that manufacturing infrastructure, creating additional efficiencies while supporting future product launches. The arrangement is expected to accelerate speed-to-market for both companies and improve production economics across multiple beverage categories.
The company has steadily expanded its footprint since launching its first products. El Hempe entered the market with terpene-infused tequila cocktails and subsequently expanded distribution into multiple states, including California, Oregon, Nevada, Hawaii, and Wisconsin. The company has also pursued equity crowdfunding initiatives through StartEngine, giving consumers and supporters an opportunity to participate in its growth story. Public company databases identify StartEngine among El Hempe’s investors, reflecting the brand’s use of alternative fundraising channels alongside institutional capital.
Industry observers have increasingly focused on the ready-to-drink category as consumers seek convenient, premium beverage options. The RTD segment has experienced rapid growth in recent years, attracting investment from established beverage companies and emerging brands alike. El Hempe’s emphasis on terpene-infused formulations and cannabis-adjacent branding has allowed it to carve out a niche within a crowded market by appealing to consumers interested in alternative beverage experiences.
Beyond its current lineup, El Hempe is developing additional products aimed at expanding its presence across emerging beverage categories. The company has disclosed plans for a hemp-inspired, low-alcohol agave-based spirit targeted for release in 2027, further extending its portfolio beyond ready-to-drink cocktails. The partnership with SETO is expected to provide the resources and infrastructure necessary to support those future launches.
The companies are also exploring additional financing opportunities involving strategic partners, including the MacArthur CPG Fund, to support acquisitions, inventory growth, manufacturing expansion, infrastructure investments, and a broader national rollout. As El Hempe continues to expand beyond its regional roots, the new investment provides a platform for the company to pursue larger-scale growth within the evolving premium beverage market.
