Cuervo owner reports ‘strong’ Q1 sales

Jose Cuervo owner Becle has reported a 22.5% net sales increase in the first quarter of 2019, boosted by the US and Canada.

In the three months to 31 March 2019, the Mexican firm’s net sales for the period hit MXN$5.28 million pesos (US$279,018), while volume sales increased by 13.1% to 3.9m nine-litre cases.

Operating profit during the first quarter of 2019 increased 3.1% to MXN$987m pesos (US$52.1m).

The US and Canada grew net sales by 30.7% aided by depletion trends.

Mexico increased double digits by both volume (11.9%) and value (19.8%), led by the non-alcoholic category, the company’s premiumisation strategy and “accumulated pricing” across all spirits.

Net sales for the rest of the world region fell by 2.4%, with a “favourable sales mix that partially offsets volume decline”.

Jose Cuervo Tequila – which represented 31.1% of total net sales for the period – increased net sales by 22.3%.

The wider Tequila portfolio, which includes 1800 Tequila, grew 14.1% and represented 19.6% of total net sales.

Other spirits brands, including Irish whiskey Bushmills and Three Olives Vodka, represented 26.2% of total net sales in the period and reported a 25.3% net sales increase.

Net sales of non-alcoholic and other represented 15.2% of total sales and increased 28.6%. Net sales of ready-to-drink brands represented 7.9% of total net sales and reported an increase of 25.9%.

“The company remains well positioned in the global spirits industry, with significant capital and conservative financial leverage to execute our long-term growth strategy,” the firm said in a statement.

Earlier this year, Becle reported a net sales increase of 8.5% in 2018, led by the growing popularity of super-premium Tequila across all regions.