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?

Royal Brackla heads to Korea with TR activation

Bacardi Global Travel Retail has partnered with The Shilla Duty Free Seoul in more...

Speyburn Distillery completes £5m expansion

Speyburn Distillery had reason to celebrate last week following the completion more...

DFS Cocktail Festival in pictures

DFS Group is marking the first anniversary of its Wines and Spirits Duplex more...

Ballantine’s Brasil touches down in Asia

Ahead of the Rio Olympics this summer, Pernod Ricard Travel Retail Asia has more...

Stock Spirits loses battle against shareholder

Stock Spirits’ largest shareholder has claimed victory against the Central more...

Asia to drive beverage consumption over 5 years

Asia will claim two-thirds of the world's incremental beverage consumption by more...

Pernod drives Absolut Elyx focus in US

As Pernod Ricard attempts to claw back growth for Absolut vodka, the group has more...

Botran Rum: a brand history

As Botran Rum celebrates its 75th anniversary, SB discovers the family more...

Borough Wines to house Butler's Gin distillery

Independent London merchant Borough Wines & Beers has opened its eighth venue more...

Major US distributor charged with smuggling

Republic National Distributing Company – the second largest drinks more...

Bacardi’s Facundo Rum lands in travel retail

Luxury travel retailer DFS Group has listed Bacardi’s four-piece Facundo Rum more...

Altia and Walsh Whiskey ink supply partnership

Walsh Whiskey Distillery has secured its first partnership agreement since the more...

Bhakta 'thrown off' WhistlePig board

WhistlePig Rye Whiskey founder Raj Bhakta has been “thrown off” of the more...

Johnnie Walker opens Amsterdam House

Diageo Global Travel and Schiphol Airport Retail have opened Europe’s first more...

Diageo to de-list debt on NY Stock Exchange

Diageo is planning to voluntarily de-list certain debt securities from the New more...

Ian Macleod Distillers agrees £60m bank loan

Scotch whisky producer Ian Macleod Distillers has secured a £60 million more...

Beam Suntory names CFO amid new structure

Beam Suntory has named John Owen as its new chief financial officer at the same more...

Hailstorms wreak havoc on Cognac vineyards

Severe storms, including hailstones, inflicted “considerable" damage to the more...

Brown-Forman reshuffles family board members

Brown-Forman has elected three fifth generation descendants of the company’s more...

Double-digit sales growth for United Spirits

India’s United Spirits has reported net sales growth of 13% in 2015/16 more...