Cuervo’s Sales Near $2.6 Billion In 2023, Despite Headwinds
February 23, 2024Grupo Cuervo saw sales grow 6.2% to nearly $2.6 billion on a pro forma basis last year, despite a volume decrease of 1.4% to 27.1 million 9-liter cases. Currency fluctuations ate into the company’s results on a reported basis, however, with sales down 3%—factoring in currency changes—and EBITDA down 26% to $428 million.
In the U.S. and Canada, Cuervo’s sales grew 1.9% at constant currency to $1.5 billion, but fell 9% on a reported basis. Volume in the North America region slipped 3% to 14.9 million cases, with the decline partially attributable to the discontinuation of the Playamar Tequila Seltzer brand. In the most recent quarter, Cuervo’s U.S. and Canada volume was down 1.2% to 4.3 million cases—excluding the effect of Playamar—and sales dipped 3.3% to $436 million at constant currency.
According to Impact Databank, Cuervo’s leading labels in the U.S. were down 1.8% in depletion terms for the year, with 1800, Pendleton, Proper No. Twelve, Gran Centenario, and Maestro Dobel showing growth, offset by declines for Jose Cuervo, Bushmills, and the Jose Cuervo and 1800 RTD Margaritas.
Globally, volume of the Jose Cuervo Tequila brand increased 3.2% to 9.5 million cases in 2023, accounting for 35% of company volume and 36% of net sales. The group’s other Tequila labels combined for 5.8 million cases globally last year.
“Acknowledging the prevailing market challenges, we remain optimistic about our growth trajectory,” Cuervo stated. “The slowdown in consumer demand for spirits across several markets indicates a return to historical trends after two years of exponential growth. Our strategic focus on premiumization has enabled us to either maintain or increase our market share in most key markets, positioning us favorably to navigate and overcome current setbacks.”—Daniel Marsteller
| Proximo Spirits—Key Brands in the U.S. (thousands of 9-liter case depletions) |
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| Brand | Origin/Type | 2022 | 2023 | Percent Change1 |
|---|---|---|---|---|
| Jose Cuervo | Tequila | 5,060 | 5,020 | -0.8% |
| Jose Cuervo Margaritas | Pre-Mixed Cocktail | 2,750 | 2,570 | -6.5% |
| 1800 | Tequila | 2,025 | 2,110 | 4.2% |
| 1800 Ultimate Margarita | Pre-Mixed Cocktail | 1,190 | 1,040 | -12.6% |
| Pendleton | Canadian Whisky | 499 | 522 | 4.6% |
| The Kraken | Imported Rum | 380 | 378 | -0.5% |
| Proper No. Twelve2 | Irish Whiskey | 276 | 309 | 12.0% |
| Gran Centenario | Tequila | 230 | 242 | 5.0% |
| Bushmills | Irish Whiskey | 195 | 185 | -5.1% |
| Maestro Dobel | Tequila | 135 | 140 | 3.6% |
| Total Key Brands3 | 12,740 | 12,516 | -1.8% | |
| 1 Based on unrounded data. 2 Includes Apple. 3 Addition of columns may not agree due to rounding. Source: IMPACT DATABANK © 2024 |
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Tagged : 1800, Bushmills, Jose Cuervo, Pendleton, Proper No. Twelve, Proximo
