Jose Cuervo owner Becle reported a 37.7% net sales increase in the first quarter of 2021, bolstered by a triple-digit boost for ready-to-drink products.
Mexican drinks group Becle saw net sales reach MXN$7.16 million pesos (US$359,000) for the first three months of this year. Volume climbed 43.4% to 4.8m nine-litre cases, and gross profit increased 42.9% to MXN$3.84m pesos (US$193,000).
The group said sales were boosted by another ‘strong’ quarter in the US and Canada, and ‘gradual recovery’ in Mexico. The firm’s ready-to-drink portfolio rose by 101.6%.
Becle also witnessed a strong performance in 2020, with net sales growing by double digits.
Becle said the first quarter of 2021 was hit by challenges such as Covid-19 and restrictions on the on-trade. However, the firm was ‘able to adapt quickly to the difficult and often changing market conditions and continued to execute its business plan effectively’.
The company’s portfolio of ‘leading’ brands, focused on high-growth spirits categories and supported by global distribution, will generate value for its shareholders, Becle added.
Net sales in the US and Canada increased 45.2% during Q1, and Mexico’s sales rose by 15.9%.
The rest of the world region grew net sales by 30%.
By category, Jose Cuervo Tequila increased sales by 9.2% in the first quarter, while ‘other Tequila’ brands, including 1800 Tequila, climbed 59%.
‘Other spirits’ brands – including Kraken rum, Three Olives Vodka and Bushmills Irish whiskey – rose 43%.
In March 2021, the company borrowed US$150m to pay for the remaining stake in Eire Born Spirits (EBS), the company behind Conor McGregor’s Proper No. Twelve Irish whiskey brand.
Becle has owned a 49% stake in EBS since May 2020, when it completed the purchase of an additional 29% stake in the company.
Becle confirmed it had completed the exercise of its option to purchase the additional stake in EBS on 23 April 2021.
In 2020, Jose Cuervo tapped into the burgeoning hard seltzer category with the launch of Playamar.