- Sales from three months to end of September decline 4.3% to MXN10.95bn (US$549m)
- Year-to-date sales in reported terms flat (-0.4%) at MXN31.06bn
- Jose Cuervo portfolio up in Q3, higher-end ‘other’ tequilas dip – albeit both on reported bases
- ‘US & Canada’ region flat (organic), Mexico sees sales slide 15.1%
Proximo Spirits has seen its sales slip into negative territory for the first time this year.
Three months on from booking a flat top line from the quarter to the end of June – and six months after Q1’s +1% – the company, which oversees the Jose Cuervo tequila brand, has reported a decline of 4.3% in the three months to the end of September. While the performance places the business above its Moët Hennessy (-7%) and Pernod Ricard (-5.9%) spirits peers for the period, Proximo will be more concerned about the latest figures from its higher-end tequila stable.
The company, which is publicly listed but majority-owned by the Beckmann family in Mexico, saw Jose Cuervo come in up in sales terms by 9.1% in the quarter, although the figure included the impacts of foreign exchange fluctuations. The mark saw its volumes fall back by approaching 3%. There was also good news from the ‘other spirits’ block, which included Bushmills Irish whiskey; sales rose 5.1% on volumes slide of just over 6%.
However, Proximo’s ‘other tequilas’, home to brands including Gran Coramino, Maestro Dobel and Tequila 1800, dipped by 1% on a 7.9% volumes slide. While the value decline is on a reported basis, the unit’s performance hints at if not a wider consumer preference for more affordable tequila over higher-end marks, then a slower appetite for the company’s luxury brands.
Turning to the results on a regional basis, the ‘US & Canada’ posted a flat quarter, down by 0.7% in organic sales, while Proximo’s home market of Mexico slumped by 15.1%. The ‘Rest of the World’, meanwhile, was down by 5.7%, again on an organic basis.
“We continue to navigate a challenging market environment, marked by shifting economic conditions and evolving consumer behaviour,” the company said in its results commentary. “Despite these headwinds, our sales performance has benefited from premiumisation efforts … , mitigating the industry downturn in key markets.
“As we approach the end of the year, our efforts are centred on maintaining momentum and positioning ourselves for a strong start to 2025.”
Last month, Proximo commenced the rollout of Devil’s Heat, a shot-targeted flavour extension of Jose Cuervo in the US.
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- AB InBev
- Bacardi
- Campari Group
- Diageo
- Moët Hennessy
- Pernod Ricard
- Proximo Spirits
- Suntory Global Spirits
- William Grant & Sons
