Tequilas Drive Growth For Proximo, As RTDs Slow
October 27, 2023Proximo Spirits has seen Tequila labels like Jose Cuervo, 1800, Gran Centenario, Maestro Dobel, and Gran Coramino drive volume growth in U.S. control states so far this year, offsetting a slowdown in its premixed Margarita business. Proximo parent Grupo Cuervo yesterday posted third quarter sales up 4.3% to $580 million at constant currency on a like-for-like basis, despite a volume decline of 4.5% to 6.5 million 9-liter cases. Currency fluctuations cut deeply into the company’s results, with the appreciation of the Mexican peso against the dollar leading sales to be down 8.5% on a reported basis, with EBITDA falling 59% to $64 million.
Cuervo’s sales in the U.S. and Canada remained strong over the past three months, with volume up 7% to 3.7 million cases and sales rising 12.5% at constant currency to $337 million. The company credited those gains to “the resilient performance of our super- and ultra-premium Tequila brands.” Indeed, Cuervo’s 1800 Tequila—which depleted 2 million cases in the U.S. last year, according to Impact Databank—was up 5% by volume in control states through August of this year, while Gran Centenario and Maestro Dobel both jumped by 12%.
The newest entry to Proximo’s upscale Tequila stable, Gran Coramino, cofounded by actor and comedian Kevin Hart, has soared to 684% growth in control states so far this year, after reaching 50,000 cases nationally last year, according to Impact Databank. Cuervo CEO Juan Domingo Beckmann told SND earlier this year that the brand has seen “extraordinary consumer pull across the country.” Gran Coramino was recently backed with a new ad campaign featuring Hart and his wife Eniko in an homage to Martin Scorsese’s Goodfellas.
In Cuervo’s investor call yesterday, Beckmann said, “Our premium Tequilas continue to experience strong demand, outperforming the overall growth of the Tequila market” in North America.
“Starting in May we began to notice a gradual improvement in net sales value that has continued into the current quarter,” added Proximo CEO Luis Felix. “This positive turn is a result of our price increases across our proof-strength spirits portfolio and the successful execution of our premiumization strategy … While depletions declined slightly by 2% due to the challenges in the RTD category, Tequila depletions grew by 4%.”
Felix noted that the Proximo Tequila portfolio grew 7% in value in Nielsen channels during the third quarter, outpacing the overall category’s 5.5% increase. The company remains confident in its premiumization strategy looking ahead, said Felix, with the RTD portfolio expected to see improving sales moving into next year.—Daniel Marsteller
| Proximo Spirits—Key Brands in the U.S. | |||||
| Brand | Origin/Type | Total 2022 Depletions1 |
Control States’ Volume Growth 2023 YTD2 |
||
|---|---|---|---|---|---|
| Jose Cuervo | Tequila | 5,085 | 3.8% | ||
| Jose Cuervo Margaritas3 | Pre-Mixed Cocktail | 2,320 | -7.4% | ||
| 1800 | Tequila | 2,025 | 5.0% | ||
| 1800 Ultimate Margaritas | Pre-Mixed Cocktail | 1,190 | -19.2% | ||
| Pendleton | Canadian Whisky | 499 | 2.4% | ||
| The Kraken | Imported Rum | 380 | 4.6% | ||
| Proper No. Twelve | Irish Whiskey | 276 | -3.8% | ||
| Gran Centenario | Tequila | 230 | 12.3% | ||
| Bushmills | Irish Whiskey | 195 | -10.9% | ||
| Maestro Dobel | Tequila | 135 | 12.3% | ||
| Playamar | Hard Seltzer | 105 | 3.1% | ||
| Gran Coramino | Tequila | 51 | 683.5% | ||
| 400 Conejos | Mezcal | 29 | 83.7% | ||
| Total Key Brands | 12,520 | 1.0% | |||
| 1 Thousands of 9-liter cases. 2 Year-to-date through August. 3 Includes Authentic and Golden. Source: NABCA and IMPACT DATABANK © 2023 |
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Tagged : 1800, Gran Centenario, Maestro Dobel, Proximo
