- Sales in three months to end of December slide 10.5% to MXN12.9bn (US$630.5m)
- For full-year 2024, sales decline 2.9% to MXN43.96bn (US$2.15bn)
- Jose Cuervo portfolio slips by 2.9% in value terms on 6.5% volumes fall in 2024
Jose Cuervo brand operator Proximo Spirits saw its 2024 performance struggle as the year wore on, with sales in the final quarter of the year falling by double digits.
After having worked through a flat first half of the 12-month period, the group has this week posted a 10.5% decline in sales from the three months to the end of December. Combined with Q3’s -4.3% top-line showing, 2024 finished down by almost 3% for the tequila heavyweight.
The Jose Cuervo stable slowed markedly in the fourth quarter, as sales decreased by 5.7% on the corresponding period a year earlier. On the plus side, ‘other tequilas’, which comprises the company’s higher-end marks, was up 2.7% while ‘other spirits’, home to brands including Bushmills Irish whiskey and The Kraken rum, was up 2.1%.
The main Q4 headline for Proximo, however, came from the ‘US & Canada’ reporting region, where sales plunged by almost a quarter (-24.7%). Positives from Mexico and the ‘Rest of the World’ failed to stem the three-month sales fall.
The tough quarter had a knock-on effect on the full-year performance, with 2024 seeing Jose Cuervo slip in value terms by 2.9%. Despite what Proximo called a “strong performance in the tequila portfolio” in the US & Canada, the region came in down 2% last year, while Mexico declined by 6.3%. The ‘Rest of the World’, meanwhile, inched up 0.6% in value terms, “reflecting an improved product mix from premiumisation efforts in (the) tequila and ‘other spirits’ categories”.
“As we enter 2025, we face an industry landscape shaped by evolving market conditions,” the company said in its results commentary. “Following 2024’s industry contraction, our primary goal is to stabilise and build on last year’s market share gains. We will focus on aligning shipments with depletions, sustaining premiumisation efforts, and strengthening operational resilience.
“While we expect growth to be modest, we are committed to optimising performance through strategic execution, leveraging opportunities and staying agile in the face of new challenges and consumer trends.”
