Proximo Spirits takes over Jose Cuervo US distributionBy Becky Paskin
Proximo Spirits is to take over the US distribution of Jose Cuervo Tequila when Diageo’s contract ends on 30 June.
In a statement released this weekend, Juan-Domingo Beckmann, CEO of Casa Cuervo, said the move from Diageo to sister company Proximo Spirits signalled the “next chapter” for the world’s largest Tequila brand.
“Diageo has been a significant partner of Jose Cuervo for many years, but with ten generations of tequila-making in the family, Casa Cuervo is excited to embark on this next chapter in the strategic expansion of its world-renowned tequilas,” he said.
Diageo had been in negotiations with the Beckmann family to acquire the Tequila brand, as its existing distribution contract is due to expire at the end of June 2013. But discussions broke down in December last year after the pair failed to settle on a deal, resulting in Diageo refusing to renew its contract at all.
New Jersey-based Proximo, which is also owned by the Beckmann family, will gain control of Cuervo’s North America distribution from 1 July 2013.
Mark Teasdale, CEO for Proximo, said: “We plan to make considerable investments in brand building and innovation for the Jose Cuervo portfolio to accelerate its growth. After only five years of business, the Proximo team has more than doubled the size of 1800 Tequila and Three Olives Vodka, and created the most exciting spiced rum brand in the category, the Kraken. We are looking forward to returning Jose Cuervo to its position as the most exciting tequila brand in the category.”
Securing new distribution for Jose Cuervo’s North American market is a major step forward for Casa Cuervo – it being the largest market for the brand outside Mexico. However as Diageo currently controls the brand’s global distribution, it’s thought Casa Cuervo will continue to seek new distributors in other markets before the 30 June deadline.