Developer docs
API playgroundTry for free, no card

Search company profiles

Tito’s Handmade Vodka

Full company profile

uuid0002td5

Namestring
Tito’s Handmade Vodka
Legal namestring
Fifth Generation Distilled Spirits, Inc.
Company typeenum
Private
Founded yearint
1995
Operating statusenum
Operating
Ownership categoryenum
Headcount rangeband
501–1,000
akta.pro rankint
HeadquartersAustin, United States
HQ citystring
Austin
HQ countrystring
United States
HQ regionstring
North America
Markets served

Serves global market

Offices1 record

Each record includes

City, Country, Type, Description, Source

Keyword5 values
craft vodka, gluten-free spirits, corn-based vodka, handmade vodka, premium spirits brand
Industry2 codes
1Spirits Distilling & Brands
CodeCRADAIACPrimaryYes
2Alcoholic Beverage Brand Owners & Holding Companies (Multi-category Portfolios)
CodeCRADAIALPrimaryNo
NAICS code3 codes
  • Distilleries312140
  • Distilleries31214
  • Beverage Manufacturing3121
SIC code2 codes
  • Beverages2080
  • Wholesale-Beer, Wine & Distilled Alcoholic Beverages5180
Product category
Spirits
GTM motion1 record

Each record includes

Type, Description, Source

Revenue model2 records
1Spirits Product Sales
TypeHardware Sales
Description

Core revenue from selling Tito's Handmade Vodka through retail (liquor stores), restaurant/bar/hospitality accounts, and direct-to-consumer online ordering with delivery. The brand sells multiple bottle sizes and has expanded portfolio through LALO Tequila acquisition.

titosvodka.com
2Merchandise
TypeHardware Sales
Description

100% of net proceeds from merchandise sold through store.titosvodka.com are donated to nonprofits supported year-round.

titosvodka.com
Marketing channels7 records

Each record includes

Title, Type, Stage, Description, Source

Distribution channels4 records

Each record includes

Title, Type, Scope, Target buyer, Description, Source

Cost components5 values
Supply Chain, Marketing or Sales, Operations, Personnel, Infrastructure
GTM typeB2C
B2C
Offering typeHardware or Manufacturing
Hardware or Manufacturing
Core offering1 text field

Tito's Handmade Vodka distills and sells America's original craft vodka, made from corn in pot stills and certified gluten-free, at 40% alcohol by volume in multiple bottle sizes (1L, 750ml, and others). The flagship vodka is sold through retail liquor stores, on-premise hospitality accounts (restaurants, bars, hotels, entertainment venues), direct-to-consumer e-commerce with delivery, and an international distributor network reaching 50+ countries. The company has expanded its portfolio via the 2025 acquisition of a majority stake in LALO Tequila, and supplements sales with branded merchandise whose net proceeds are donated to charity.

Differentiator
Functional benefit
Problem solved
Quantifiable outcome1 of 3 values shown
  • Over 12 million cases sold in 2024
+2 more records
Product overview1 text field

Tito's Handmade Vodka is a single-product spirits company offering America's original craft vodka. The product portfolio consists of the core Tito's Handmade Vodka (corn-based, gluten-free, 40% ABV) sold in various bottle sizes, supplemented by a merchandise line (with 100% proceeds donated to charity), a cocktail recipe database, and a loyalty program (Tito's Taster). The company operates two key philanthropy initiatives: Love, Tito's (supporting nonprofits with over $200M+ donated in 5 years) and Vodka for Dog People (animal welfare). The company acquired a majority stake in LALO Tequila in 2025, marking its first acquisition.

Product and service3 records
1Tito's Handmade Vodka
CategoryCore Spirits Product
Description

America's original craft vodka, distilled from corn and certified gluten-free by the Gluten-Free Certification Organization, sold at 40% alcohol by volume in multiple bottle sizes (1L, 750ml, and others). Marketed as 'handmade' vodka for adult consumers, hospitality accounts, and international markets across 50+ countries.

2LALO Tequila
CategoryAcquired Spirits Brand
Description

Premium Mexican tequila brand majority-owned by Tito's Handmade Vodka since September 2025; produced preserving traditional Mexican tequila-making heritage and distributed through Tito's expanded portfolio and distribution capabilities.

3Tito's Merchandise Store
CategoryBranded Merchandise
Description

Branded merchandise including barware, apparel, and accessories sold through the Tito's online store at store.titosvodka.com; 100% of net proceeds are donated to nonprofits supported year-round as part of the Love, Tito's philanthropy program.

Scale indicator8 records

Each record includes

Type, Value, Description, Source

Partnership4 partners
Strategic tierCoreTypeGTM or Marketing PartnerAnnounced on2026-04-15
Description

Multi-year venue sponsorship agreement giving Tito's naming rights to a newly reimagined hospitality area called 'The 1997 Lounge' on the arena's upper concourse. Includes custom fan activations, digital storytelling campaigns, and annual charitable donations to a mutually agreed community organization. Deal brokered by AEG Global Partnerships.

Strategic tierCoreTypeStrategic or Co-development PartnerAnnounced on2025-09-23
Description

Tito's Handmade Vodka acquired a majority stake in LALO Tequila, marking Tito's first-ever acquisition. The deal supports LALO's growth while preserving its Mexican tequila-making heritage, expanding Tito's portfolio and distribution capabilities.

Strategic tierCoreTypeChannel Partner/ Reseller/ DistributorAnnounced on2025-09-23
Description

Brokered the multi-year venue sponsorship deal between Tito's Handmade Vodka and T-Mobile Arena for the 'The 1997 Lounge' hospitality area.

Strategic tierMinorTypeGTM or Marketing PartnerAnnounced on2025-06-23
Description

Tito's Vodka served as an underwriter for NIVA's State of Live economic impact survey, which found independent venues generated $153.1B in total economic output in 2024. Tito's supported the music and live entertainment industry ecosystem.

Recent move6 records

Each record includes

Date, Type, Title, Description, Source

Expansion highlight5 records

Each record includes

Type, Description

Peers10 records
TypeBroad incumbent
Description

Smirnoff is the world's largest-selling vodka brand, owned by Diageo. While positioned at a mass-market price point, it competes with Tito's for the same retail shelf space and on-premise menu placement.

2Stolichnaya (Stoli)
TypeDirect peer
Description

Stolichnaya is a Russian-origin vodka brand now owned by SPI Group, distributed globally. It is a direct competitor in imported/European-style vodka positioning that Tito's faces in international markets.

TypeEmerging player
Description

Chopin is a small-batch Polish potato vodka with a craft heritage story similar to Tito's. It competes in the premium and ultra-premium vodka segment with a comparable artisanal brand narrative.

TypeDirect peer
Description

LALO is a premium tequila brand majority-acquired by Tito's parent in 2025. It is now part of Tito's portfolio, operating as a sub-brand and a peer in the high-end tequila category.

TypeDirect peer
Description

Belvedere is a Polish rye vodka owned by LVMH/Moët Hennessy, a super-premium peer to Tito's in restaurants and high-end retail. Comparable craft production positioning and price-tier competition.

TypeBroad incumbent
Description

Absolut is a Swedish vodka brand owned by Pernod Ricard with deep global distribution. It overlaps with Tito's on premium and mid-tier retail positioning across the U.S. and international markets.

TypeDirect peer
Description

Ketel One is a Dutch craft-style vodka owned by Diageo, positioned as a premium offering similar to Tito's. It is a direct competitor in the on-premise premium category and shares Tito's craft-heritage brand narrative.

TypeDirect peer
Description

Casamigos is a celebrity-founded premium tequila brand owned by Diageo. Following Tito's acquisition of LALO Tequila, Casamigos is a direct peer in the tequila expansion strategy and a competitor within shared distributor relationships.

TypeBroad incumbent
Description

Patron is a premium tequila owned by Bacardi. As Tito's expands into tequila via LALO, Patron represents the established premium benchmark Tito's LALO competes against in retail and on-premise.

TypeDirect peer
Description

Grey Goose is a premium French wheat vodka owned by LVMH/Bacardi, widely distributed in retail and on-premise globally. It is Tito's most direct competitor in premium vodka at retail and in bars.

Market position
Strengths5 records

Each record includes

Headline, Details, Source

Weaknesses5 records

Each record includes

Headline, Details, Source

Competitive moat4 records

Each record includes

Type, Details

Key risks6 records

Each record includes

Headline, Details, Source

Key highlights7 records

Each record includes

Headline, Details, Source

Customer concentration

Classification, Details

Named customers6 records

Each record includes

Name, Industry, Type, Use case, Source, UUID

Segment3 records

Each record includes

Title, Type, Primary, Description, Pain point addressed, Use case, Source

Ideal customer profile3 records

Each record includes

Profile, Firmographic size, Sales motion, Sales cycle length, Buying structure, Purchase trigger, Buyer persona, Geography, Industry vertical, Primary use case, Description, Pain points, Evidence proof points, Target buyer

Technology focused
No
API detail
Has APIbool
No

Docs URL, Description

AI maturity
App detail

Has app

Feature1 record

Each record includes

Title, Differentiator, Description, Source

Core technology
Revenue estimate
Valuation estimate
Number of profiles
Profiles1 record

Each record includes

Name, Designation, Designation category, Overview, Profile commentary, Source

Subsidiaries1 record

Each record includes

Name, Acquired on, Relationship type, Type, Business focus

Compliance1 record

Each record includes

Name, Class, Description

Funding overview

Funding stage, Last funding date, Total funding USD

Funding rounds

Each record includes

Round, Amount USD, Date, Pre money valuation, Total investors, Investors, News

Investors

Each record includes

Name, Type, Date of entry, Rounds participated, Website

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A1 record

Each record includes

Name, Acquisition type, Announced date, Completed date, Status, Website, News

Investment3 records

Each record includes

Name, Round, Announced date, Lead investor, Website, News

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Tito’s Handmade Vodka

Tito’s Handmade Vodka firmographics

Firmographics
Name
Tito’s Handmade Vodka
Legal name
Fifth Generation Distilled Spirits, Inc.
Website
http://www.titosvodka.com/
Company type
Private
Founded year
1995
Operating status
Operating
Headcount range
501–1,000 employees
Ownership category
akta.pro rank

Tito’s Handmade Vodka industry classification

Industry
Product category
Spirits
NAICS
Distilleries (312140), Distilleries (31214), Beverage Manufacturing (3121)
SIC
Beverages (2080), Wholesale-Beer, Wine & Distilled Alcoholic Beverages (5180)
akta.pro primary industry
Spirits Distilling & Brands (CRADAIAC)
akta.pro secondary industry
Alcoholic Beverage Brand Owners & Holding Companies (Multi-category Portfolios) (CRADAIAL)

Keywords

  • Craft vodka
  • Gluten-free spirits
  • Corn-based vodka
  • Handmade vodka
  • Premium spirits brand

Where Tito’s Handmade Vodka is headquartered

Location

Headquarters

HQ city
Austin
HQ country
United States
HQ region
North America

Offices1 record

Markets served

Tito’s Handmade Vodka business model

Business model
GTM type
B2C
Offering type
Hardware or Manufacturing
Cost components
Supply Chain, Marketing or Sales, Operations, Personnel, Infrastructure

Revenue model

  1. Spirits Product Sales: Core revenue from selling Tito's Handmade Vodka through retail (liquor stores), restaurant/bar/hospitality accounts, and direct-to-consumer online ordering with delivery. The brand sells multiple bottle sizes and has expanded portfolio through LALO Tequila acquisition.
  2. Merchandise: 100% of net proceeds from merchandise sold through store.titosvodka.com are donated to nonprofits supported year-round.

Go-to-market motion1 record

Distribution channels4 records

Marketing channels7 records

Tito’s Handmade Vodka product offering

Product offering

Core offering

Tito's Handmade Vodka distills and sells America's original craft vodka, made from corn in pot stills and certified gluten-free, at 40% alcohol by volume in multiple bottle sizes (1L, 750ml, and others). The flagship vodka is sold through retail liquor stores, on-premise hospitality accounts (restaurants, bars, hotels, entertainment venues), direct-to-consumer e-commerce with delivery, and an international distributor network reaching 50+ countries. The company has expanded its portfolio via the 2025 acquisition of a majority stake in LALO Tequila, and supplements sales with branded merchandise whose net proceeds are donated to charity.

Product overview

Tito's Handmade Vodka is a single-product spirits company offering America's original craft vodka. The product portfolio consists of the core Tito's Handmade Vodka (corn-based, gluten-free, 40% ABV) sold in various bottle sizes, supplemented by a merchandise line (with 100% proceeds donated to charity), a cocktail recipe database, and a loyalty program (Tito's Taster). The company operates two key philanthropy initiatives: Love, Tito's (supporting nonprofits with over $200M+ donated in 5 years) and Vodka for Dog People (animal welfare). The company acquired a majority stake in LALO Tequila in 2025, marking its first acquisition.

Differentiator

Problem solved

Functional benefit

Products and services

  • Tito's Handmade Vodka America's original craft vodka, distilled from corn and certified gluten-free by the Gluten-Free Certification Organization, sold at 40% alcohol by volume in multiple bottle sizes (1L, 750ml, and others). Marketed as 'handmade' vodka for adult consumers, hospitality accounts, and international markets across 50+ countries.
  • LALO Tequila Premium Mexican tequila brand majority-owned by Tito's Handmade Vodka since September 2025; produced preserving traditional Mexican tequila-making heritage and distributed through Tito's expanded portfolio and distribution capabilities.
  • Tito's Merchandise Store Branded merchandise including barware, apparel, and accessories sold through the Tito's online store at store.titosvodka.com; 100% of net proceeds are donated to nonprofits supported year-round as part of the Love, Tito's philanthropy program.

Quantifiable outcome

  • Over 12 million cases sold in 2024
  • +2 more outcomes

Companies that use Tito’s Handmade Vodka

Customer profile

Named customers6 records

Segments3 records

Ideal customer profiles3 records

Tito’s Handmade Vodka technology and API

Technology

Technology focussed No

API detail

Has API
No
API docs
API detail

Core technology

AI maturity

App detail

Feature1 record

Tito’s Handmade Vodka partnerships and signals

Strategic signal

Partnerships

Four partnerships are on record, tiered core and minor.

  • T-Mobile ArenacoreGTM or Marketing Partner · 15 April 2026Multi-year venue sponsorship agreement giving Tito's naming rights to a newly reimagined hospitality area called 'The 1997 Lounge' on the arena's upper concourse. Includes custom fan activations, digital storytelling campaigns, and annual charitable donations to a mutually agreed community organization. Deal brokered by AEG Global Partnerships.
  • LALO TequilacoreStrategic or Co-development Partner · 23 September 2025Tito's Handmade Vodka acquired a majority stake in LALO Tequila, marking Tito's first-ever acquisition. The deal supports LALO's growth while preserving its Mexican tequila-making heritage, expanding Tito's portfolio and distribution capabilities.
  • AEG Global PartnershipscoreChannel Partner/ Reseller/ Distributor · 23 September 2025Brokered the multi-year venue sponsorship deal between Tito's Handmade Vodka and T-Mobile Arena for the 'The 1997 Lounge' hospitality area.
  • National Independent Venue Association (NIVA)minorGTM or Marketing Partner · 23 June 2025Tito's Vodka served as an underwriter for NIVA's State of Live economic impact survey, which found independent venues generated $153.1B in total economic output in 2024. Tito's supported the music and live entertainment industry ecosystem.

Scale indicators8 records

Recent moves6 records

Expansion highlights5 records

Tito’s Handmade Vodka competitors and assessment

Company assessment

Broad incumbents

  • Smirnoff: Smirnoff is the world's largest-selling vodka brand, owned by Diageo. While positioned at a mass-market price point, it competes with Tito's for the same retail shelf space and on-premise menu placement.
  • Absolut Vodka: Absolut is a Swedish vodka brand owned by Pernod Ricard with deep global distribution. It overlaps with Tito's on premium and mid-tier retail positioning across the U.S. and international markets.
  • Patron Tequila: Patron is a premium tequila owned by Bacardi. As Tito's expands into tequila via LALO, Patron represents the established premium benchmark Tito's LALO competes against in retail and on-premise.

Direct peers

  • Stolichnaya (Stoli): Stolichnaya is a Russian-origin vodka brand now owned by SPI Group, distributed globally. It is a direct competitor in imported/European-style vodka positioning that Tito's faces in international markets.
  • LALO Tequila: LALO is a premium tequila brand majority-acquired by Tito's parent in 2025. It is now part of Tito's portfolio, operating as a sub-brand and a peer in the high-end tequila category.
  • Belvedere Vodka: Belvedere is a Polish rye vodka owned by LVMH/Moët Hennessy, a super-premium peer to Tito's in restaurants and high-end retail. Comparable craft production positioning and price-tier competition.
  • Ketel One: Ketel One is a Dutch craft-style vodka owned by Diageo, positioned as a premium offering similar to Tito's. It is a direct competitor in the on-premise premium category and shares Tito's craft-heritage brand narrative.
  • Casamigos Tequila: Casamigos is a celebrity-founded premium tequila brand owned by Diageo. Following Tito's acquisition of LALO Tequila, Casamigos is a direct peer in the tequila expansion strategy and a competitor within shared distributor relationships.
  • Grey Goose: Grey Goose is a premium French wheat vodka owned by LVMH/Bacardi, widely distributed in retail and on-premise globally. It is Tito's most direct competitor in premium vodka at retail and in bars.

Emerging players

  • Chopin Vodka: Chopin is a small-batch Polish potato vodka with a craft heritage story similar to Tito's. It competes in the premium and ultra-premium vodka segment with a comparable artisanal brand narrative.

Market position

Strengths5 records

Weaknesses5 records

Competitive moat4 records

Key risks6 records

Key highlights7 records

Customer concentration

Tito’s Handmade Vodka social profiles

Digital presence

Tito’s Handmade Vodka compliance and trust

Trust signal

Compliance1 record

Tito’s Handmade Vodka financial estimates

Financial estimate

Revenue estimate

Valuation estimate

Tito’s Handmade Vodka leadership team

Management profile

Number of profiles

Profiles1 record

Tito’s Handmade Vodka subsidiaries and ownership

Company hierarchy

Subsidiaries1 record

Tito’s Handmade Vodka funding detail

Funding detail

Funding overview

Funding rounds

Investors

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

Tito’s Handmade Vodka M&A and investment

M&A and investment

M&A1 record

Investments3 records

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about Tito’s Handmade Vodka

What does Tito’s Handmade Vodka do?

Tito's Handmade Vodka distills and sells America's original craft vodka, made from corn in pot stills and certified gluten-free, at 40% alcohol by volume in multiple bottle sizes (1L, 750ml, and others). The flagship vodka is sold through retail liquor stores, on-premise hospitality accounts (restaurants, bars, hotels, entertainment venues), direct-to-consumer e-commerce with delivery, and an international distributor network reaching 50+ countries. The company has expanded its portfolio via the 2025 acquisition of a majority stake in LALO Tequila, and supplements sales with branded merchandise whose net proceeds are donated to charity.

Is Tito’s Handmade Vodka a public or private company?

Tito’s Handmade Vodka is a private company. It is classified as founder individual operated bootstrapped and is currently operating.

When was Tito’s Handmade Vodka founded?

Tito’s Handmade Vodka was founded in 1995. It employs 501 to 1,000 people.

Where is Tito’s Handmade Vodka based?

Tito’s Handmade Vodka is headquartered in Austin, United States, in the North America region.

How does Tito’s Handmade Vodka make money?

Two revenue lines are on record. Spirits Product Sales are the primary driver. The others are merchandise.

Who are Tito’s Handmade Vodka's main competitors?

Broad incumbents on record are Smirnoff, Absolut Vodka and Patron Tequila. Direct peers are Stolichnaya (Stoli), LALO Tequila, Belvedere Vodka, Ketel One, Casamigos Tequila and Grey Goose. Chopin Vodka is listed as an emerging player.

Does Tito’s Handmade Vodka have an API?

No public API is recorded for Tito’s Handmade Vodka.

What industry is Tito’s Handmade Vodka in?

Tito’s Handmade Vodka's product category is Spirits. Its primary akta.pro industry code is CRADAIAC, Spirits Distilling & Brands, with a secondary code of CRADAIAL, Alcoholic Beverage Brand Owners & Holding Companies (Multi-category Portfolios). Its NAICS code is 312140 and its SIC code is 2080.

Unlock the full company data

50 free credits on sign-up, no credit card required.

Contact sales
Live signals
YahooNon-profit steps in to move animals from Mobile shelter ahead of IsaiasA non-profit moved animals from Mobile Animal Services shelter to Birmingham and partner shelters ahead of Hurricane Isaias. The move, supported by the BISSELL Pet Foundation, Kentucky Humane Society, and Tito's Handmade Vodka, opened space for displaced pets. The post expressed gratitude and concern for those in the storm's path.AOL.comHow Much Should You Spend On A Good Bottle Of Vodka In 2026?Good vodka typically costs $20-$30 per bottle, with Tito's Handmade Vodka at $21.99 and Grey Goose at $29.99. Potato-based vodka is often smoother and more expensive, while water quality also affects flavor.KXAN AustinUT freshman wins $1.2M on ‘College GameDay’ donates half, then wins $1M more for charityConnor Kacena-Merrell, a UT freshman, won $1.2 million on College GameDay and pledged half to Building Tomorrow. Tito's Vodka added $1 million, half to Central Texas Food Bank and half to Building Tomorrow, after he made a 35-yard kick. He plans to use his remaining winnings for tuition and savings.PetageEthical Products Announces Licensing Collaboration with Tito’s Handmade VodkaEthical Products announced a licensing collaboration with Tito's Handmade Vodka to develop and market a premium dog toy collection launching early 2027. The collection will feature plush, rope, and interactive toys inspired by Tito's branding, with 100% of Tito's licensing revenue donated to charity. Additional product details will be released in coming months.EIN PresswireThe Iron Horse Hotel Brings Back Yappy Hour with Monthly Summer Patio Events Supporting Local Animal WelfareThe Iron Horse Hotel is hosting monthly Yappy Hour events on its patio in partnership with Humane Animal Welfare Society of Waukesha. Each event features adoptable dogs, a Plinko game, and Tito's Handmade Vodka will donate $1 per cocktail up to $2,500. The series runs July 25, August 29, and September 26 from 2:00 to 4:00 PM.MediaPostTito's Vodka, Wrangler Wrap Up Americana: Barware Collection Benefits CharitiesTito's Handmade Vodka partnered with Wrangler for a denim-wrapped barware and accessories collection, with prices from $27 to $60. 100% of net proceeds go to nonprofit organizations, and customers can select which charity receives the proceeds.Fox NewsPittsburgh LGBTQ Pride parade in jeopardy after corporate sponsors pull fundingPittsburgh's annual LGBTQ Pride parade is facing a financial crisis after major corporate sponsors withdrew their support, leaving organizers $350,000 short of their $500,000 goal with less than two months until the June event. While Macy's and American Eagle Outfitters Inc. continue to back the event, Walmart and Tito's Handmade Vodka have declined to sponsor despite supporting it in previous years, citing the need to distribute support across more organizations. Pittsburgh Pride's director suggested the pullback is tied to the broader political climate and corporate backlash against diversity initiatives.TeamropingjournalMary Ann Miller on Legacy, Leadership and the Future of RopingMary Ann Miller, a fourth-generation world champion roper from Cave Creek, Arizona, won back-to-back Women's Professional Rodeo Association team roping titles in 2006 and 2007, and remains active in the sport while serving as a representative for Tito's Handmade Vodka's rodeo marketing program. She founded the Miller Johnson Foundation in 2023 to support the financial health of Western heritage families including ranchers, farmers, and junior rodeo participants. Miller has stated goals to compete for another world championship and expand her foundation's reach within the rodeo community.citybizStop In The Name of Love: An Evening of Motown Magic to Benefit Tri-County Animal RescueTri-County Animal Rescue is hosting "The Soul & Sound of Motown" fundraising event on May 1st at Trump International Golf Club in West Palm Beach, Florida, featuring Motown music, cocktails, dinner, and live performances. The event celebrates the organization's 30th anniversary and its milestone of rescuing more than 100,000 animals, with sponsors including Tito's Handmade Vodka, The Bainbridge Companies, and Kia. Proceeds will support the rescue and care of abandoned and neglected dogs and cats throughout South Florida.AxiosTito's Handmade Vodka is North Carolina's top-selling spiritTito's Handmade Vodka led North Carolina spirit sales in fiscal years 2024 and 2025, selling over 300,000 cases across the two years. The state's ABC system generated $713 million in FY24, while Mecklenburg County led with $280 million in FY25. State revenue declined to $696 million in FY25, reflecting rising costs and tighter margins.