EconomyFinancialIs the little horse already more expensive? José Cuervo...

Is the little horse already more expensive? José Cuervo raises his prices to protect his income from inflation

Belce, the owner of José Cuervo tequila, maintains the momentum she has achieved since the start of the pandemic. The company, which cushioned the closure of restaurants due to confinement thanks to greater consumption of its products at home, now maintains the growth in its sales after the opening of restaurants and bars in Mexico and the United States, while avoiding inflation and the challenges brought about by breaks in logistics chains worldwide.

The firm, which also has Kraken rum and Hangar 1 vodka among its brands, reported revenues of 9,069 million pesos during the first three months of 2022, which represents an increase of 26.5%. Sales volume also grew 11.4% to 5.4 million nine-liter cases in the reporting period.

“Our tequila brands, especially super and ultra-premium tequilas, performed strongly, reinforcing the success of the premiumization strategy we have implemented. We remain confident in the solid fundamentals of our business and attractive growth prospects, as we continue to adapt and create value for shareholders,” Becle management said in its financial report.

The operating flow of the alcoholic beverage company grew 16.5% to 2,191 million pesos and its consolidated net income increased 9.8% to 1,355 million pesos, according to the financial statement for the first quarter of 2022, which Cuervo sent to the Mexican Stock Exchange of Securities (BMV).

Mexico ranked as the market with the best sales results. In the country, the company reported a 74.2% increase in revenues, to 1,909 million pesos, due to premiumization efforts and year-on-year price increases in the beverages in its portfolio.

In second place was the Rest of the World region, with an increase of 53.5% to 1,475 million pesos. The United States and Canada, which in 2021 were the markets with the best results, had an advance of 11.2% in revenues, to 5,684 million pesos.

In sales volume by market, the one that presented the greatest growth was the Rest of the World, with an increase of 52% to 857 million pesos. The Mexican market grew 35.6% to 1,302 million pesos, and the United States and Canada had a drop in volume of 2.6%, to 3,212 million pesos.

José Cuervo tequila remains the crown of the company’s best-selling brand, with a 53.3% increase in sales, which closed at 3,251 million pesos in the quarter. In second place are other tequilas with an advance of 77.5% to 2,656 million, other spirits increased sales 14.1%, non-alcoholic beverages decreased 27.5%, and ready-to-drink fell 11.9%.

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

Becle recorded a 22% increase in sales in the third quarter, driven by higher consumption of tequila outside of Mexico and the United States.

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