Jose Cuervo sees sales and volume contrast in Q1
The maker of Jose Cuervo has reported a 9.9% net sales increase for its flagship Tequila to start 2025, though volume has dipped.
In its financial results for the first quarter (Q1) of 2025, which ended 31 March, Mexico-based Becle reported net sales were up by 7.5% from the same period last year – rising from MXN8.96 billion pesos (US$456,177 million) to 9.63bn pesos Gross profit was also up on a year-on-year basis, by 19.8% from 4.65bn pesos to 5,56bn pesos.
However, the company’s total Q1 volume was down by 7.6%; from 5.336m nine-litre cases to 4.93m.
Looking by region, North America led the company’s sales as its biggest market. The region was up by 20.1%, improving its first-quarter 2024 performance after jumping from 5.19m pesos (US$264,236) to 6.23m pesos (US$317,389).
Volume in the region dipped by 3.6% in comparison.
Becle pinned this to a product mix that ‘skewed towards higher sales per case brands’, as well as the US dollar’s favourable exchange rate versus the weakening Mexican peso.
In Mexico, the company’s second-largest market’s Q1 net sales were down by 13.8% year on year, which was attributed to volume declines. Mexico’s 13.3% year-on-year volume fall was said to be due to ‘ongoing market weakness and wholesaler destocking’.
Results by category
Turning to categories, Becle’s lead spirit and the world’s biggest-selling Tequila brand, Jose Cuervo, had a positive performance regarding net sales. Cuervo’s sales rose by 9.9% to 3.37m pesos (US$171,626) in Q1.
Becle’s other Tequilas also fared well in this regard (those of which include the 1800 brand). Its other Tequila’s rose in net sales by 8.7% year on year, from 3.24m pesos (US$165,059) to 3.52m pesos (US$179,416).
Volume-wise Cuervo (3.9%) and other Tequilas (0.7%) were both down. Cuervo represented 34.6% of the company’s total volume for Q125, while its other Tequila’s made up 22.8%. Together, they account for more than half of the company’s nine-litre cases.
According to IWSR 2023 data, Tequila is the fastest-growing major spirits category in the US and in the world. Jose Cuervo is the global leader with 28.9% of total market size, ahead of its nearest competitor, Don Julio and Casamigos owner Diageo, which has a 13.6% share.
Outside of Tequila, Becle’s other spirits (which include its Irish whiskey Bushmills, Three Olives Vodka and Kraken rum) saw net sales rise by 4.7%.
Ready-to-drink products (RTDs) were also in the ascendancy by 2%, but non-alcoholic ‘spirits’, on the other hand, reported a 3.9% decrease in Q1.
Reflecting on the performance, Becle said in a statement: “As we open 2025, we are encouraged by our ability to manage the business effectively despite ongoing industry pressures and cautious consumer sentiment. The resilience of our core categories, especially Tequila, and continued execution of our premiumisation strategy have reinforced our position in the market.
“With disciplined brand investment, strong cash flow generation, and a focus on long-term value creation, we remain confident in our ability to navigate near-term challenges while advancing our growth agenda.”
During a conference call for its full-year financial results in 2024, Becle predicted its business would be hit by US$80m in 2025, should US president Donald Trump’s proposed tariffs be put in place.
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