Super-premium Tequila boosts Becle full-year salesBy Melita Kiely
Mexico-based drinks group Becle has reported a net sales increase of 8.5% in 2018, led by the growing popularity of super-premium Tequila across all regions.
In the year ending 31 December 2018, net sales rose to MXN$28,158 million pesos (US$1,468.2m). Volume sales also rose 3.8% over the year, reaching 21.3m nine-litre cases.
Becle reported “strong” volume and net sales growth during its final quarter of the year, driven by double-digit growth in the US and Canada, and the rest of the world regions, while Mexico was “stable”.
Net sales in the US and Canada increased 6.2% in 2018 compared to the previous year, attributed to both volume growth and a favourable sales mix.
In Mexico, net sales rose 12.6% on a pro forma IFRS (International Financial Reporting Standard) 15 basis compared to the year before, which was due to volume growth and higher average net selling prices per case as a result of favourable sales mix and price increases.
Looking to the rest of the world region, net sales grew 21.4%, also due to volume growth and higher sales mix of premium spirit brands.
In terms of individual brands, Jose Cuervo Tequila represented 34.1% of total net sales for 2018, with sales up 1% compared to 2017.
Becle’s other Tequila brands, representing 23.3% of total net sales, saw an 11.1% increase on the previous year.
The business’s other spirits brands – including Irish whiskey Bushmills – reported net sales growth of 26.9% over the course of the year, and represented 23.4% of total net sales.
Net sales of ready-to-drink (RTDs) brands accounted for 8.2% of total net sales, and grew 6.2%.
Commenting on the results, Becle management said in a statement: “Becle finished 2018 with strong volume and net sales growth during the fourth quarter.
“We continued to see strong depletion trends in the US and Canada for the third consecutive quarter while tightly managing distributor Tequila inventories across our geographies.
“Growth was once again led by our premiumisation trend toward super-premium Tequilas across all regions.
“The company remains well positioned in the global spirits industry, with significant capital and low debt leverage to execute our long-term growth strategy.”
Becle also released its fourth quarter results, with net sales up 23.1% to MXN$10,268 million pesos compared to the same period the previous year.
Volumes also experienced double-digit growth of 13.8%, reaching 7.3m nine-litre cases.