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Jose Cuervo Tequila owner raises investment in Conor McGregor’s whiskey

The company that makes Jose Cuervo Tequila has upped its stake in Eire Born Spirits, which is owned by MMA fighter Conor McGregor.

Becle has completed the purchase of an additional 29% stake in Eire Born Spirits, the company behind Conor McGregor’s Proper No. Twelve Irish Whiskey. The Tequila giant, which also reported a promising start to 2020 and a rise in net sales, now owns 49% of Eire Born Spirits.

Becle’s global net sales rose by 5.3% to MXN$5.2 million pesos (US$212m) in the first three months of the year. Gross profit dropped by 3.4% to MXN$2.7 million pesos (US$110m). The group said it “responded quickly” to the rapidly changing consumer landscape that has been brought on by coronavirus lockdowns and bar closures around the world.

Volume sales, however, fell 9.0% on an underlying basis to 3.4 million nine-litre cases.

In the U.S. and Canada, net sales increased 4.1% on a reported basis, while net sales in Mexico fell by 19.5% in the same period. Becle blamed the decline on an excise tax introduction to energy drinks, and product reformulation in one of its non-alcoholic beverage brands.

McGregor created the Irish whiskey brand with business partners Audie Attar and Ken Austin in 2018. Since then over 200,000 cases of the whiskey have been sold in the US.

Proper No. Twelve is a blended whiskey made by former label Bushmills distiller David Elderman. McGregor is the majority shareholder, CEO and chairman of the brand.

The spirit flew off shelves in Ireland following its release, with Tesco stores being forced to ration customers to two bottles per purchase. It is distributed by US-based importer Proximo Spirits, which also handles Bushmills Irish whiskey as well as Kraken rum, and Jose Cuervo.

Jose Cuervo’s net sales increased 18.2% compared to the same period in 2019, and represented 37.3% of total net sales for the first quarter of 2020. Net sales of other Tequila brands rose 17.1% and represented 23.3% of total net sales. Other spirits brands, meanwhile, fell 9.5% compared to the first quarter of last year.

The results show an improved price mix in Becle’s portfolio. Jose Cuervo’s volume sales, which represent more than a third (34.5%) of Becle’s Tequila output, rose 5.8% compared to the same period last year, but all other Tequila brands’ sales fell 7.9%.

“We continue to closely monitor the situation and adapt to the changing environment and macro challenges,” the company said.

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