Cuervo’s Sales Approach $2.5 Billion In 2022, Led By Upscale TequilasFebruary 17, 2023
Grupo Cuervo has posted sales up 16% to $2.46 billion for its fiscal year ended in December, as volume increased 7.4% to 27.5 million 9-liter cases. EBITDA came in up 24% to $529 million for the year.
Cuervo’s U.S. and Canada sales rose 6.6% to $1.5 billion despite a 2.5% decrease in volume to 15.4 million cases. According to the company, North American sales were “driven by better price mix as a result of our premiumization strategy and partially offset by a 2.5% decrease in volume and Mexican peso appreciation against the U.S. dollar on a year over year basis.” In the fourth quarter, volume in the U.S. and Canada was up 1.8% to 4.6 million cases, resulting in sales up 3.7% to $456 million.
According to Impact Databank, the flagship Jose Cuervo Tequila brand led the way for Cuervo’s Proximo Spirits unit in the U.S. last year, with volume surpassing 5 million case depletions on 6% growth. Higher-priced portfoliomate 1800 Tequila grew even faster, up 15% to cross the 2-million-case mark, as did upscale Tequila labels Gran Centenario (+25% to 230,000 cases) and Maestro Dobel (+26% to 135,000 cases). In addition, the Jose Cuervo portfolio was driven by gains in Tradicional, which was up 13.5% to 400,000 cases in 2022. Pendleton Canadian whisky was another strong contributor, rising 11% to just under a half-million cases. Those increases were partially offset by declines in the premixed cocktail segment, where both Jose Cuervo and 1800 Margaritas faced tough comps from the prior year.
“We continued to benefit from the premium spirits trend, on-premise openings, and our mitigation of supply chain challenges, in the face of inflationary pressures,” the company said, adding that it expects Tequila’s ascent within the spirits market to continue. Looking ahead, Cuervo said its “diverse portfolio, with its desirable premium-plus options in high-growth geographies, is well positioned to continue its success.”—Daniel Marsteller
|Proximo Spirits—Key Brands
(thousands of 9-liter case depletions)
|Jose Cuervo Margaritas2||Pre-Mixed Cocktail||2,550||2,345||-8.0%|
|1800 Ultimate Margarita||Pre-Mixed Cocktail||1,245||1,190||-4.5%|
|The Kraken||Imported Rum||390||380||-2.5%|
|Proper No. Twelve||Irish Whiskey||280||276||-1.5%|
|Total Key Proximo Brands||11,976||12,345||3.1%|
|1 Based on unrounded data.
2 Includes Authentic and Golden.
Source: IMPACT DATABANK © 2023
Tagged : 1800, Gran Centenario, Jose Cuervo, Jose Cuervo Tradicional, Maestro Dobel, Proximo Spirits
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