Exclusive news and research on the wine, spirits and beer business

Cuervo Sees Premiumization, Price Increases Drive 20% Sales Hike

October 28, 2022

Grupo Cuervo has posted a 20% increase in net sales to approximately $581 million for its fiscal third quarter ended in September, with EBITDA up even stronger at 33% to $142 million. Company volume totaled 6.8 million cases on a 5% increase.

The U.S. and Canada, accounting for 56% of net sales, grew 14% to $326 million for the quarter, even as volume declined 1.5% to just under 3.5 million cases. Cuervo said the double-digit sales growth demonstrated “the positive impact of our premiumization strategy and price increases throughout the portfolio.” It blamed the slip in volume on supply disruptions and tough comps in the RTD category from the prior year. In control state data for the year to date through August, Proximo Spirits’ flagship Jose Cuervo, 1800, Pendleton, Bushmills, Gran Centenario, Maestrol Dobel, and Playamar seltzer all showed solid volume increases, while Margarita RTDs, Proper No. Twelve, and The Kraken slipped.

“We have been able to deliver strong results in a quarter still characterized by industry-wide supply chain constraints and inflationary cost pressures,” the company said. “As a result of these macroeconomic challenges, we are closely monitoring any change in consumer behavior, however, as of today, we continue to see very favorable trends for our brands and categories overall, as people are drinking better, and younger age groups and new demographics are coming into play.”—Daniel Marsteller

Proximo Spirits—Key Brands In The U.S.
Brand Type Total 2021
Case Depletions1
2022 YTD
Percent Change
in Control States2
Jose Cuervo Tequila 4,800 2.6%
Jose Cuervo
Margaritas
Premixed Cocktail 3,020 -10.6%
1800 Tequila 1,755 5.2%
1800 Ultimate
Margaritas
Premixed Cocktail 1,245 -16.0%
Pendleton Canadian Whisky 445 8.5%
The Kraken Imported Rum 390 -6.3%
Proper No. Twelve Irish Whiskey 280 -7.9%
Bushmills Irish Whiskey 195 5.5%
Gran Centenario Tequila 193 25.9%
Maestro Dobel Tequila 106 16.3%
Playamar Seltzer Premixed Cocktail 101 12.9%
Total Key Brands 12,531 -0.5%
1 Thousands of 9-liter case depletions
2 Year-to-date through August
3 Includes Authentic and Golden
Source: NABCA and IMPACT DATABANK © 2022
Subscribe to Shanken News Daily’s Email Newsletter, delivered to your inbox each morning.

Tagged : , ,

GET YOUR FIRST LOOK AT 2021 DATA AND 2022 PROJECTIONS FOR THE WINE AND SPIRITS INDUSTRIES. ORDER YOUR 2022 IMPACT DATABANK REPORTS. CLICK HERE.

Previous :  Next :