Cuervo owner reports 12.5% sales growth
Mexican drinks group Becle, the maker of Jose Cuervo, saw its year-to-date net sales increase by 12.5%, driven by the double-digit growth of super-premium Tequila.
In the nine months to 30 September 2019, net sales hit MXN$7 million pesos (US$366,000). Total volume sales grew 6.8% to 5.3m nine-litre cases, boosted by “strong depletion trends across each region and volume rise across each product category”.
The Mexican group said its growth “continues to outpace the broader spirits category and the company remains well positioned with strong brands in high-growth categories”.
Becle posted “significant growth” in earnings before interest, taxes, depreciation, and amortisation (EBITDA), which was up 31.5% to MXN$1.3m pesos (US$68,000).
Net sales in Mexico grew 15%, mainly driven by the “strong volume growth in super-premium Tequilas and the effect of the price increases implemented year-to-date”.
The US and Canada saw its net sales increase 10%, while the rest of the world region increased by 19.7%.
In terms of individual brands, Jose Cuervo Tequila represented 36.4% of total net sales for in the first nine months of the year, with sales up 22%.
Becle’s other Tequila brands, representing 26.8% of total net sales, saw a 21.1% increase.
The business’s other spirits brands – including Irish whiskey Bushmills – reported a net sales dip of 0.7%, and represented 21.3% of total net sales.
Net sales of ready-to-drink (RTDs) brands accounted for 8% of total net sales, and grew 9.5%.
Becle said that its net sales figures by category “include the effect of a base comparison resulting from the delay in billing of discounts in the US from a large distributor that occurred during last year’s second quarter and were effectively applied during the third quarter of 2018”.