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.

Jose Cuervo saw net sales grow 22.2% in Q1 2019

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.