Cuervo, the parent company of Proximo Spirits and owner of the Jose Cuervo tequila mark, has sold off a holding in the owner of the Lalo tequila brand.
The transaction, confirmed by Cuervo yesterday, brings to an end the group’s interest in Lalo Spirits Holdings that dates back to 2023. Neither the size of the stake nor its value was disclosed.
Lalo, which debuted in the US in May 2023 with a blanco expression, was partnered with Tito’s Handmade Vodka last week when the latter’s owner, Fifth Generation, spent an undisclosed sum on majority control of the brand. The mark is named after the father of co-founder Eduardo González, whose grandfather was Don Julio González, the creator of the namesake Don Julio.
Cuervo sold its 50% holding in Don Julio to Diageo, giving the London-headquartered group outright control, in 2014.
“This transaction delivers a significant return on the company’s original investment and reflects [Cuervo’s] disciplined approach to portfolio management and capital allocation,” the Mexican company said this week.
Proximo Spirits handles Cuervo’s spirits brand operations, covering the full portfolio, which includes Bushmills Irish whiskey, The Kraken spiced rum and Three Olives vodka as well as the complete tequila and mezcal stable. The company has been struggling sales-wise in recent months, posting a fourth consecutive quarter of top-line declines in July.
