Jose Cuervo owner posts 20% sales riseBy Ron Emler
Further evidence of the demand for Tequila has come from Becle, the Mexican company controlled by the Beckmann family, which owns the market leading Jose Cuervo brand.
In the full year to Christmas the company’s net sales across the portfolio rose by 19.4% on volume increases of 7%. The gross margin was a healthy 52.1%, generating a 16.5% rise in gross profit to 18,246 million pesos.
This performance was triggered largely by the swing to off-trade consumption in the United States and Canada in the face of the coronavirus pandemic. Together they delivered 33% net sales growth for the year, boosted by a volume increase and the devaluation of the Mexican peso against the US dollar. That more than offset the “challenges faced in other regions,” Becle said.
Overall the United States and Canada generated a 22% increase in annual volumes.
Jose Cuervo, which accounts for 31% of the company’s volumes, grew 19.4% on a volume increase of just 0.4%. Becle’s ‘other Tequila’ brands, including 1800 Tequila, increased sales by 21.2% on 3.1% extra volumes.
The marginal volume increases for Becle’s Tequila brands in North America reflect poorly in the highly competitive market. For instance, Diageo’s sales values in the second half year soared by 80% with Don Julio putting on 56% and Casamigos a remarkable 139%, with both gaining spirits market and tequila category share.
Becle’s volumes in the ready-to-drink sector grew by 61% following the launch of Playamar in the hard seltzer category. .