Diageo ends Cuervo talks

11th December, 2012 by Andy Young

Diageo has announced that it is ending its discussions with the Beckmann family, about acquiring Cuervo Tequila.

As the deal to buy Cuervo has fallen through Diageo has also said it will end it 26-year deal to distribute the Tequila. As reported in the drinks business in August, Diageo’s chief executive Paul Walsh had said that he did not want to simply renew the global distribution deal for José Cuervo, which expires next year.

Talks between Diageo and Cuervo’s family owners, the Beckmanns, have been going on for over a year, and the brand was expected to be valued at more than US$3billion.

In confirming that the talks had ended Walsh said: “Diageo has had a long and successful relationship with the Cuervo brand and we are proud of what we have achieved for the brand as its distributor over many years.

“We believe that the future of the brand would be best delivered by aligning ownership of the brand with its route to market and I have no doubt that Diageo has the best route to market for this brand.

“However it has not been possible to agree a transaction which delivers value for Diageo’s shareholders and therefore by mutual agreement, we have terminated our discussions.”

With the Diageo deal falling through the question now remains as who will acquire Cuervo. In August db reported that Pernod Ricard has said it does not wish to make a “transformational” acquisition and it prefers to own brands rather than distribute them. As Beam Global owns the number two Tequila Suaza and Bacardi has a stake in Patrón, the door could be open for the US company Constellation Brands to start talks with the Beckmann family.

The Cuervo news comes the day after it was reported that Diageo is considering an offer to buy Jim Beam whiskey.

Leave a Reply

Your email address will not be published. Required fields are marked *

Subscribe to our newsletters

Job vacancies

Brand Ambassador – Santa Rita Estates

Santa Rita Estates
London or Hertfordshire but with flexibility to travel, UK

Sales Executive - Wine and Spirits Awards

The Drinks Business
Central London, UK

On-Trade Channel Manager

Delegat Europe Limited (UK)
London / Midlands, GB

Trade Marketing Analyst

Delegat Europe (UK)
London, GB

Key Account Executive

Delegat Europe Limited (UK)
London / Midlands, GB

Senior National Account Manager

Conviviality
London, UK

ON-TRADE Sales Executive

Roberson Wine
London, UK

OFF-TRADE Sales Executive

Roberson Wine
London, UK

Judging Week Runners

Decanter World Wine Awards
ExCel Centre, London E16, UK

Sales Administrator

Les Caves de Pyrène
Guildford, UK

Retail Commercial Executive

Laithwaite's Wine
Theale, Berkshire

Wine Buyer

Conviviality Plc
Crewe, UK

Sales Account Manager - On-Trade

Berkmann Wine Cellars
Liverpool

Sales Account Manager - On-Trade

Berkmann Wine Cellars
M3/M4 corridor

Media Sales Manager - Hong Kong

The Drinks Business Hong Kong
Hong Kong

The Global Merlot Masters 2017

Deadline : 31st March 2017

The Prosecco Masters 2017

Deadline : 10th March 2017

db Awards 2017

Deadline : 28th April 2017

The Global Organic Masters 2017

Deadline : 3rd March 2017

Click to view more

The Global Sparkling Masters

the drinks business is thrilled to announce the launch of The Global Sparkling Masters

The Global Rosé Masters 2016

the drinks business is proud to announce the launch of the Global Rosé Masters 2016.

The Prosecco Masters 2016

Now in its third year, the competition will reflect the growth in popularity of this fresh and exciting sparkling wine from the picturesque regions of Veneto and Friuli.

The Global Pinot Noir Masters 2016

After the success of last year’s competition that judged over 250 wines from no less than 16 countries, the drinks business is proud to announce the third year of the Global Pinot Noir Masters

Click to view more