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?

Conigliaro to open Andy Warhol-inspired bar

Renowned bar and cocktail innovator Tony Conigliaro is to open his third venue more...

Crown Royal campaign 'inspires generosity'

Crown Royal Canadian Whisky has unveiled a new campaign titled 'Live Generously more...

Havana Club twist as Trump hints at Cuba freeze

The Havana Club trademark battle between Pernod Ricard and Bacardi Limited more...

Karuizawa: A brand history

Japanese whisky distillery Karuizawa is spearheading the upper echelons of the more...

Whitley Neill unveils 'UK's first' quince gin

Halewood Wines & Spirits has expanded its Whitley Neill portfolio with the more...

KDA names first social responsibility head

Non-profit trade group the Kentucky Distillers' Association has appointed its more...

Travel retail in focus: Rum

As rum brands large and small continue to push for premiumisation, SB questions more...

Diageo settles Stitzel-Weller trademark lawsuit

Diageo North America has settled a trademark lawsuit with a US-based spirits more...

Marie Brizard bolsters Eurocash deal

Paris-based drinks group Marie Brizard Wine & Spirits has signed a new more...

Rémy and Bols complete Passoã joint venture

Rémy Cointreau Group and Lucas Bols have formally established the Passoã more...

Top 10 marketing campaigns in November 2016

Scotch whisky brand Bell’s recruited The IT Crowd actor Matt Berry for a more...

Seedlip: Alcohol-free spirits won't 'steal share' from booze brands

With alcohol consumption falling as drinkers grow more health-conscious, The more...

Global Spirits to grow US with MS Walker

Privately-held US drinks firm Global Spirits has appointed MS Walker as its New more...

Buckley joins Irish Distillers leadership team

Brendan Buckley has been promoted to the role of strategy, innovation and more...

Rémy ‘breaks category boundaries’ at Schiphol

Rémy Cointreau Global Travel Retail has partnered with Amsterdam Schiphol more...

Ex-Diageo director leads Sazerac DC office

Buffalo Trace Bourbon owner Sazerac has appointed a former Diageo director as more...

Beam Suntory eyes malts 'opportunity' in India

Beam Suntory has expanded its presence in India by launching two of its peated more...

Mallya gifts US$40m severance to his children

Vijay Mallya has reportedly gifted US$40 million received in a severance deal more...

Poliakov debuts virtual reality experience

French vodka brand Poliakov has unveiled a new immersive digital experience more...

Cuba bans alcohol during Castro mourning

The Cuban government has banned the sale of alcohol as it continues a period of more...