In a recent conversation with Classic Rock, Sammy Hagar opened up about the massive fortune he made from his tequila empire, revealing that it far surpassed his earnings from his time in Van Halen and Montrose.
Hagar’s tequila journey began with his Cabo Wabo brand, which started as part of his Cabo Wabo Cantina in Mexico. By 2007, it had grown into a powerhouse, leading him to sell 80% of the company to Italy’s Gruppo Campari for a staggering $80 million.
“When the first offer came in at around $60 million for the whole thing, I thought, ‘Why would I sell? This company is making more money than I ever did in Van Halen,’” Hagar recalled. “But then they asked, ‘What would it take?’ I gave them a number, and they just said, ‘Okay.’ If I had turned down $80 million, someone would have had me committed for psychiatric treatment.”
Despite the massive payday, Hagar insists money was never his driving force. “I don’t do anything for the money—I do it for the thrill. I know people might say, ‘Well, if I had your money, I’d think that way too,’ but I felt this way even before selling the tequila company,” he explained. “If you’re only in it for the money, you’ll never be satisfied. True fulfillment comes from the journey, watching something grow from an idea into reality. A bank account full of cash doesn’t give you that.”
Hagar also shared that, having already achieved financial freedom, he had no real need for the money and chose to give much of it away. “I already had everything I wanted—a home in Hawaii, a house in Mexico, my main place in California. I own five Ferraris, E-Type Jaguars, Aston Martins, and classic muscle cars. So when that money came in, I thought, ‘What am I going to do with this?’” he said. “I gave away millions to my family, handed out huge bonuses to my bandmates, and started a foundation to help kids.”
Hagar has been deeply involved in the tequila industry for nearly 30 years. After establishing Cabo Wabo in 1991, he made a return to the liquor business in 2020 with Santo Tequila, teaming up with celebrity chef Guy Fieri.
“Tequila is my passion,” Hagar told Rolling Stone at the Santo Tequila launch event in Montana. He noted how his approach has evolved over the years: “I’m a perfectionist now.”
Fieri praised Hagar’s mindset, saying, “I’ve never heard Sammy speak competitively about anyone in music, and I feel the same way about my industry. I want everybody to succeed. I never want our tequila to rise because someone else fails.”
Before launching Santo Tequila, Hagar had already expanded his spirits portfolio. In 2011, he introduced Sammy’s Beach Bar Rum, crafted in Hawaii, followed by Santo Mezquila in 2017, a fusion of mezcal and tequila created in collaboration with Adam Levine.
From rockstar to tequila mogul, Hagar continues to turn his passions into thriving businesses—proving that sometimes, the biggest paydays come from outside the music industry.