Seto Holdings Announces Strategic Investment in El Hempe Spirits
On March 25, 2026, SETO Holdings, Inc. (OTCID: SETO) disclosed a strategic investment and platform‑integration agreement with El Hempe Spirits, Inc., a fast‑growing maker of premium ready‑to‑drink (RTD) cocktails that blends hemp‑adjacent ingredients with traditional spirits. The deal grants SETO a minority equity stake in El Hempe through a combination of preferred equity and a SAFE (Simple Agreement for Future Equity), while giving the tequila‑based RTD brand access to SETO’s nationwide distribution and manufacturing infrastructure.
Why the Partnership Matters
El Hempe has positioned itself at the intersection of three rapidly expanding beverage trends: premium RTDs, functional wellness drinks, and cannabis‑adjacent infused beverages. Its current portfolio includes:
- Delta‑9 THC‑infused RTDs (where state law permits)
- Terpene‑enhanced tequila‑based RTDs
- A low‑ABV agave spirit slated for launch in late 2027
According to industry forecasts cited by SETO, the U.S. RTD market could reach $247 billion by 2032, the functional beverage segment is expected to grow at a 7.8 % CAGR through 2030, and cannabis‑adjacent drinks may surpass $2 billion in U.S. sales by 2030. By aligning with El Hempe, SETO aims to capture a share of these high‑growth categories while leveraging its vertically integrated platform.
Platform Integration
Under the agreement, El Hempe will operate as a semi‑autonomous brand within SETO’s operational ecosystem. This structure preserves the company’s creative independence and brand identity while aligning its product development, supply chain, and go‑to‑market execution with SETO’s existing capabilities.
All current and future El Hempe formulations will be co‑developed with SETO’s distillation and product‑development partners. Commercialization will be handled through SETO’s portfolio companies—CapCity Beverage and Preferred Brand USA—supported by the broader SETO ecosystem, which includes marketing, technology, and capital‑markets expertise.
Distribution & Retail Strategy
The integrated go‑to‑market plan targets multiple channels:
- Chain grocery, club, and convenience stores (C‑store)
- Traditional beverage‑alcohol retail and hospitality (local, regional, national)
- Control‑state markets (ABC/LCBO)
- Emerging RTD, wellness, and low‑ABV channels
- Direct‑to‑consumer e‑commerce (where permitted)
Preferred Brand USA’s national sales team is expected to accelerate shelf placement, support new SKU formats, and boost retail velocity in priority markets that match El Hempe’s product specifications and regulatory environment.
RTD Manufacturing & Infrastructure Expansion
As part of the deal, El Hempe will grant SETO preferred access to its Oregon‑based RTD manufacturing facility, which currently offers a scalable capacity of over 800,000 units per month. This capability can be leveraged across SETO’s brand portfolio to:
- Speed time‑to‑market for new products
- Improve margin structures through higher utilization
- Support SKU expansion and diversification
The companies are also exploring joint initiatives in product development, supply‑chain optimization, fulfillment logistics, and potential future strategic investments.
Category Expansion: RTDs, Functional, and Infused Beverages
Seto’s investment is designed to strengthen its position across several high‑growth segments:
- U.S. RTD market – projected to reach $247 billion by 2032
- Functional beverage category – expected 7.8 % CAGR through 2030
- Cannabis‑adjacent and infused beverages – potential to exceed $2 billion in U.S. market by 2030
Janon Costley, Chairman & CEO of SETO Holdings, noted that El Hempe “sits at the intersection of cultural relevance, format innovation, and next‑gen drinking occasions,” and that the partnership equips SETO to lead in this space with infrastructure, brand credibility, and distribution scale.
Growth Strategy & Future Opportunities
Beyond the immediate integration, SETO and El Hempe are evaluating additional growth‑capital opportunities with strategic partners such as the MacArthur CPG Fund. These discussions aim to fund acquisitions, infrastructure upgrades, inventory builds, manufacturing expansion, and a national rollout of El Hempe’s product line.
For ongoing updates and detailed financial information, investors and interested parties can visit SETO’s investor‑relations page.
About SETO Holdings, Inc.
SETO Holdings, Inc. (OTC ID: SETO) is a publicly traded, vertically integrated total beverage platform that unites production, distribution, marketing, technology, and capital markets under a single engine for scalable brand growth. Guided by its mission to “Own the Spirit,” SETO focuses on acquiring undervalued beverage companies, providing them with operational infrastructure, and helping them achieve margin capture, consumer loyalty, and long‑term value creation.
About El Hempe Spirits, Inc.
El Hempe Spirits, Inc. is recognized as one of the first crossover brands that authentically bridges alcohol and cannabis‑adjacent beverage categories. The company’s bold lifestyle positioning and category‑bending approach to cocktail culture have earned it a growing footprint in the RTD space, with a pipeline of low‑ABV innovations set to launch in the coming years. El Hempe aims to redefine drinking occasions for the wellness‑forward generation by combining flavor, function, and cultural relevance.
For more information on the announcement, please see the original press release: Here.
