Sammy Hagar recently opened up about how selling his tequila company for $80 million transformed his financial security. He shared candid details about the life-changing deal in an interview with Louder Sound.
The rock legend discussed how the massive sale provided him with a level of financial stability that his music career alone couldn’t guarantee, despite his success in the industry.
“I sold my tequila company for 80 million dollars… That money changed my life,” Hagar said. “With music you’re always insecure. You’re always thinking: ‘Well I’m rich now, but it could all end tomorrow.’ I grew up poor. I didn’t ever want to be poor again.”
Hagar went on to describe the surreal feeling of waking up with such wealth. He painted a vivid picture of his reaction to the windfall.
“I’ll tell you what it feels like to wake up with $80 million in the bank… you wake up, you get out of bed, you lay on the floor and you roll around laughing for a couple of minutes,” he continued. “Then you get up and take a piss and have your coffee… and then you roll around on the floor laughing for a couple more minutes. And you think: ‘How the fuck did I do that?'”
The former Van Halen frontman also acknowledged how the deal enabled him to maintain his preferred lifestyle.
“I like Ferraris, I like a nice house and fine wines,” he said. “I couldn’t live the way I’m still living right now if it hadn’t been for that [deal].”
The tequila venture that transformed Hagar’s financial future began as a simple business extension of his Mexican restaurant empire.
Ultimate Classic Rock reported that Hagar launched Cabo Wabo Tequila in 1996 as a house brand for his Cabo Wabo Cantina in Cabo San Lucas, Mexico. The brand experienced remarkable growth over its first decade. It expanded from 37,000 cases in its inaugural year to 147,000 cases annually by the time of the sale.
The historic deal was finalized on May 7, 2007. 1067 WLLZ noted that Hagar sold 80 percent of his Cabo Wabo Tequila to Italy’s Gruppo Campari for $80 million. At the time of the acquisition, the company was generating approximately $60 million in annual sales. It had become the No. 2-selling premium tequila brand in the United States.
The business relationship with Campari continued beyond the initial sale. Van Halen News Desk revealed that in 2010, Campari purchased Hagar’s remaining 20 percent stake for $11 million plus a potential $4 million earn-out. This gave him a complete financial exit from the brand while allowing him to retain ownership of the Cabo Wabo Cantinas.
The success of Cabo Wabo Tequila demonstrated how rock stars could leverage their brand recognition to build substantial business empires outside of music. It set a precedent for celebrity-backed spirits ventures that would follow in subsequent years.
