Cuervo: Diageo split has created better opportunity

21st November, 2013 by Becky Paskin

Jose Cuervo’s split from Diageo earlier this year has created “a real opportunity” for the brand to align itself with “more like-minded” distributors, its managing director has said.

Jose-Cuervo

Jose Cuervo has forged itself a “real opportunity” since its split from Diageo

The family-owned Tequila company parted ways with its global distributor Diageo in July this year, after the pair failed to come to an agreement over a takeover deal.

The decision, announced in December 2012, left Jose Cuervo with just six months to arrange new distribution partners across 34 countries.

“It was quite hard to find partners that fit in with Jose Cuervo’s philosophy, but the whole process became fascinating because it was like speed dating the industry in many senses,” Jose Cuervo’s managing director international told The Spirits Business. “But in most cases we were in the fortunate position of choosing a pretty good suite of candidates, certainly in the major markets.”

Gutierrez added that the split from Diageo has forged an opportunity for the group to “really strengthen our route to market”.

“My intention was to establish a new network built of more like-minded distribution partners,” he said. “We’ve ended up with a stable almost entirely made up of owner-managed businesses with an entrepreneurial spirit, with a lot of them family owned that frankly mirror our culture to a far more significant extent than Diageo. It means that we get each other a lot better.”

Cuervo has now secured new distribution partners in almost every market since the changeover, with the exception of “about 8,000 cases that remain homeless,” which Gutierrez assures is “nothing, a pin prick”. The group sold 5.6million cases in 2012, a 2% increase on 2011 volumes.

He added that for the year ahead, Cuervo will be concentrating on “executing the basics”, rather than expanding distribution, with a focus on ensuring the brand continues to grow at twice the rate of the Tequila category.

Leave a Reply

If that's interesting, how about these?

Absolut appoints new operations manager

Absolut Vodka has appointed a new vice president of operations, Anna Schreil, more...

Smartphone app for settling bar bill hits UK

The Velocity app, which allows customers to pay their bill at bars and more...

Top 10 best-selling Scotch whisky brands

The entire Scotch whisky industry took a hit in 2014 as exports continued to more...

KAH Tequila founder prevails in copyright lawsuit

A judge has sided with KAH Tequila founder Kim Brandi in a dispute with the more...

ABM rolls new Reàl flavours out to the UK

American Beverage Marketers is set to introduce two new flavours in its Reàl more...

De Kuyper names ex-Bacardi boss as new CEO

Dutch spirits producer De Kuyper Holding has named the former head of more...

Spirits lead UK alcohol industry back to growth

The UK alcohol market has finally returned to growth after “years of more...

Diageo World Class names winner of US final

New York bartender Tyson Buhler will go on to represent the US in the global more...

Top 5 best-selling gin brands

The craft gin boom continued its progression in 2014, with even more brands more...

SWA makes two new senior appointments

The Scotch Whisky Association is increasing its London presence with the more...

Heaven Hill revamps Lunazul Tequila packaging

Heaven Hill Brands has launched its "One Sip and You Know" marketing campaign more...

Jägermeister acquires US importer Sidney Frank

German herbal liqueur producer Mast-Jägermeister has acquired its US importer, more...

Sage Beverages unveils ultra-premium Tequila

US spirits, beer and wine importer Sage Beverages has expanded its portfolio more...

Tequila eats into luxury spirits market share

As more international drinks groups increase their investment in super-premium more...

Top 10 best-selling rum brands

The majority of million case selling rum brands saw impressive growth last more...

Top 10 best-selling vodka brands

Challenges in Eastern Europe mean that our list of the world's best-selling more...

Edrington writes down value of Brugal rum

Edrington, owner of The Macallan Scotch whisky, has been forced to write down more...

Top 10 best-selling Cognac and brandy brands

The Cognac and brandy industry experienced a mixed bag of fortunes last year, more...

Deep Eddy on track to shift 1m cases in 2016

Deep Eddy Vodka has reached more than 500,000 case sales over the past 12 more...

Hi-Spirits to launch Lazzaroni Amaretto in the UK

Hi-Spirits has agreed a distribution deal to bring Lazzaroni Amaretto to the UK more...