Report: Cuervo Weighing An IPOMarch 16, 2016
Casa Cuervo, the world’s biggest Tequila marketer, is considering an IPO, according to Bloomberg. Citing sources with knowledge of the situation, Bloomberg reports that Cuervo’s owners—the Beckmann family—have approached banks about the idea of going public with a share sale expected to total at least $750 million. The IPO would likely be launched later this year or in early 2017.
Cuervo’s revenue jumped by more than 40% in the first three quarters of 2015 to roughly $575 million, according to Bloomberg. The Mexico City-based company sells well more than 10 million cases annually, according to Impact Databank, with a portfolio led by the Jose Cuervo Tequila range (around 8 million cases sold globally in 2015, including the core brand, 1800, Gran Centenario and the Authentic Margaritas premix cocktail line), Three Olives vodka (1.6 million cases) and Bushmills Irish whiskey (800,000 cases). The vast majority of the company’s business occurs in the U.S., where Casa Cuervo subsidiary Proximo Spirits markets the portfolio.
After years of lackluster results, Jose Cuervo has come back strong recently, and is achieving solid growth in the U.S., its biggest market. Meanwhile, Proximo recently scored three Impact “Hot Brand” awards with Jose Cuervo Authentic Margaritas, 1800 Ultimate Margarita and The Kraken rum.Subscribe to Shanken News Daily’s Email Newsletter, delivered to your inbox each morning.