EconomyFinancialHealth! Premium tequilas boost sales for the owner of...

Health! Premium tequilas boost sales for the owner of José Cuervo

Tequila remains the most dynamic beverage for Belce, which had higher sales of tequilas from the Gran Centenario, Maestro Dobel and 1,800 brands, with a boost in markets outside of Mexico and the United States, where it had greater dynamism in past months.

The company, which also markets other distillates, was boosted by the reactivation of economic activities in regions outside of Mexico and the United States, by the reopening of bars and restaurants, in addition to the good performance of the premium categories, which are priced higher and greater resistance to the ravages of the rise in raw materials and transport.

The company, which also has Kraken rum and Hangar 1 vodka in its portfolio, had a 22.2% growth in sales for the third quarter, to 11,527 million pesos. Sales in the Rest of the World (RoW) region grew 31.8%, while the advance in Mexico was 27% and in the United States and Canada sales increased 14.15%.

From July to September, total volume (sales per case) increased 5.0% to 6.8 million nine-liter cases. The company explained that this progress is explained by a 29.9% increase in volume in the RoW region and a 5.4% rise in volume in Mexico, mainly driven by the good performance of the premium tequila category.

This increase was offset by a 1.5% volume decline in the United States and Canada, due to an impact from supply chain disruptions and a high comparison base in the Non-Alcoholic Beverages and Others segments, and the ready-to-drink (RTD) beverages.

Regarding the categories, it was Other tequilas, where the Gran Centenario, Maestro Dobel and 1,800 brands are located, which registered an advance of 42.4%, taking the crown from José Cuervo, whose sales grew 15.3%. The Other Spirits brands increased 13.5%, while the net sales of Non-alcoholic beverages and others decreased 7.3%. RTD net sales decreased 5.5% compared to the same period of the previous year.

Keep up the momentum

With the challenges in the logistics chain and the increase in tequila sales in the world, Becle, which is listed on the Mexican Stock Exchange (BMV) under the ticker symbol Cuervo, registered an increase of 33.3% in its operating flow 2,814 million pesos.

Consolidated net income in the third quarter of 2022 increased 29.3% to 1,720 million pesos, compared to 1,331 million pesos in the third quarter of 2021, according to its financial statement.

Advertising, marketing and promotion (AMP) expenses in the third quarter increased 17.1%, to 2,214 million pesos compared to the third quarter of 2021. As a percentage of net sales, AMP decreased to 19.2%.

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