Cuervo Posts Full-Year Sales Up 12.5% To $1.9 BillionFebruary 18, 2022
Grupo Cuervo saw net sales grow 12.5% to $1.9 billion in its fiscal year through December on volume up 8% to 25.6 million 9-liter cases. EBITDA for the full year of 2021 increased by 4.4% to $392 million.
The company said its 4.6% sales growth in the U.S. and Canada to $1.27 billion was “driven by volume growth, better price mix as a result of our premiumization strategy and Mexican peso depreciation against the U.S. dollar on a year over year basis.” Cuervo’s volume in the U.S. and Canada advanced 3.7% compared with the previous year—and 27% versus pre-pandemic 2019—to approach 16 million cases in 2021.
The 1800 Tequila brand drove double-digit gains in the U.S. last year for subsidiary Proximo Spirits, with its core label up 18% to 1.8 million cases and its 1800 Ultimate Margarita pre-mixed cocktails jumping 28% to 1.25 million cases, according to Impact Databank. Other key brands showing double-digit volume gains in the U.S. last year included Pendleton Canadian whisky, Proper No. Twelve Irish whiskey, and Gran Centenario Tequila.
Cuervo’s progress ramped up in the fourth quarter, as global sales increased 22% and U.S. and Canada revenues accelerated to 26% growth, led by strong gains for its premium Tequila stable. “Despite cost inflation and supply chain constraints, we continue to enjoy favorable premiumization trends across our portfolio,” Cuervo noted in a statement, adding that the ongoing “normalization” of the on-premise has also benefited the company in recent months.—Daniel Marsteller
|Proximo Spirits—Key Brands
(thousands of 9-liter case depletions)
|Jose Cuervo Margaritas2||Pre-Mixed Cocktail||3,338||3,020||-9.5%|
|1800 Ultimate Margarita||Pre-Mixed Cocktail||973||1,245||28.0%|
|Proper No. Twelve||Irish Whiskey||232||280||21.0%|
|Total Key Brands||11,315||11,778||4.1%|
|1 Based on unrounded data.
2 Includes Authentic and Golden.
Source: IMPACT DATABANK © 2022