Jose Cuervo sales drop 7.3% in Q3
The world’s leading Tequila brand, Jose Cuervo, reported a 7.3% sales drop in the third quarter (Q3) of 2025 as North America fell by double digits.
The sales decline for Jose Cuervo Tequila resulted in sales of MXN 3.77 billion pesos (US$204.7 million) in the three months ending 30 September 2025.
However, the brand’s volumes posted a slight uptick of 1.4% to 2.24m nine-litre cases in Q3.
Parent company Becle (also known as Proximo Spirits), also reported that its ‘other Tequilas’ range – which includes the 1800 brand – fared better with double-digit volume and value rises.
This segment saw volume growth of 14.5% to 1.5m nine-litre cases and a 10.3% rise to MXN 4.3bn pesos (US$233.5m) in Q3.
Meanwhile, the ‘other spirits’ portfolio, which represent brands such as Kraken rum, Bushmills Irish whiskey and American single malt Stranahan’s, performed similarly to Jose Cuervo with a 1.3% volume rise.
The ‘other spirits’ portfolio, which makes up 18% of the group’s total sales, decreased by 4% in revenue to MXN 1.96bn pesos (US$106.4m).
The only category to decline by volume was ready-to-drink (RTD), which slumped by 14.5%. The segment’s sales fell by 15.4%.
Becle’s total net sales dipped by 0.2% to MXN 10.92bn pesos (US$592.9m), but net income skyrocketed by 354.6%.
The company noted that its total Q3 volumes rose by 3.7% to 6.26m cases on the back of 5.2% growth for spirits.
Sales slump in North America
In terms of regions, the US and Canada (Becle’s biggest market with 55.1% of total sales) suffered a 10.3% revenue drop and a 6.4% volume decrease in Q3.
The company attributed the volume slump in North America to a challenging ready-to-serve category, and retail disruption in Canada where American spirits have been pulled off shelves amid trade tensions.
Sales in the region were also impacted by the unfavourable Mexican peso currency versus the US dollar.
On the other hand, Mexico performed strongly with sales up by a quarter (24.3%) and a volume increase of 18.3%, driven by market share gains and strong Tequila growth.
Tequila growth also boosted the group’s performance in the rest-of-the-world region, where volumes were up by 19.9% and sales rose by 15.6%.
Lalo divestment
During the third quarter, the company also benefitted from the sale of its 21.3% stake in Lalo Tequila. Tito’s Handmade Vodka purchased fellow Texan brand Lalo Tequila for an undisclosed sum in September.
Becle confirmed on 1 October that it had divested its stake in Lalo, which resulted in a ‘significant return’ on the original investment made in 2023.
The deal is said to reflect Becle’s ‘disciplined approach to portfolio investment and capital allocation’.
In addition, Becle has signed an agreement to sell its Boost energy drink brand to an unnamed buyer as part of its strategy to offload non-core assets. The brand will be fully managed by the new owner from 1 January 2026.
The company said in a statement: “During the quarter, we delivered solid results and further strengthened our financial position despite persistent volatility across the global spirits industry. Margin expansion, strong cash generation, and continued portfolio discipline underscore our ability to navigate a challenging environment while maintaining operational efficiency.
“Moreover, recent divestments reflect our commitment to judicious capital allocation. Guided by a long-term perspective, we remain focused on deepening consumer connections and building the foundations for sustainable growth in a gradually recovering global spirits’ landscape.”
Net sales were up but volume was down for Proximo Spirits during the second quarter of 2025.
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