Proximo Spirits falls by mid-single-digits in first quarter - results data

First-quarter sales decline 6.9% to MXN9.63bn (US$491.3m)
‘US & Canada’ flat at MXN6.23bn
Jose Cuervo stable up 9.9% – albeit in reported terms – to MXN3.37bn

Proximo Spirits has picked up where it left off in 2024 with a fall in sales from the first quarter of this year.

The company, which oversees the Jose Cuervo tequila giant, booked a near-7% top-line slide from the three months to the end of March. The closing quarter of last year was also down, by 10.5%, resulting in a full-year decline from 2024 of 2.9%.

In commentary that considered the results on a reported basis, which includes the effects from currency movements, Proximo saw the Jose Cuervo portfolio come in up 9.9% in value terms versus the corresponding quarter last year. The ‘other tequilas’ stable, home to the group’s premium-plus marks, also grew its sales, rising by 8.7%. ‘Other spirits’, meanwhile, grew by 4.7% – the category contains the likes of Bushmills Irish whiskey and The Kraken spiced rum.

On a regional basis, where the company provided figures on an organic basis, the ‘US & Canada’ came in flat against Q1 2024, with “challenges in the ready-to-drink and non-alcoholic categories [being] partially offset by a strong performance in tequila”. A sizeable performance drag was witnessed at home, with Mexico sliding by 13.8% sales-wise on a similar volumes showing (-13.3%).

The ‘Rest of the World’ reporting region, however, was markedly down, by just over 20% (20.1%) in value and by 13.8% in volumes. Proximo highlighted “high inventory levels” in the region during the three-month period.

“As we open 2025, we are encouraged by our ability to manage the business effectively despite ongoing industry pressures and cautious consumer sentiment,” the group said. “The resilience of our core categories, especially tequila, and continued execution of our premiumisation strategy have reinforced our position in the market.

“With disciplined brand investment … and a focus on long-term value creation, we remain confident in our ability to navigate near-term challenges while advancing our growth agenda.”

In an investor presentation last month, Proximo, which is 87%-owned by Mexico’s Beckmann family and 13% publicly listed, claimed to be the “undisputed leader in tequila globally” with around 39% market share. The ‘US & Canada’ accounts for around 56% of group sales, although no reference was made to the tariff situation that was playing out at the time.

US President Donald Trump had lined up a 25% tariff on all imports from Mexico earlier this year, before pausing its implementation on products covered by the ‘United States-Mexico-Canada Agreement’, which includes tequila, earlier this month.

Proximo Spirits’ official Q1 2025 results announcement