World’s Largest Tequila Producer Reports 67% Sales Slump in 2026

In this photo illustration, a person is holding a smartphone with the logo of Mexican tequila company Jose Cuervo on screen in front of website. (Photo: Timon Schneider / SOPA Images/Sipa USA)

In an earnings report released on Thursday, the company behind Jose Cuervo announced a 67% slump in net profit during the first quarter of 2026. It is a staggering, and by all means unexpected drop from the biggest tequila maker in the world, and an ominous reflection of industry headwinds.

Mexican spirits firm Becle reported that gross profit for Q1 was down by 16% to MXN 3.9bn (US $223.1m), while net profit declined to 388.2 million pesos ($21.7 billion). The United States and Canada — where sales dropped by 36.6% — appear to have been the hardest markets hit.

In addition to Cuervo, Becle is responsible for tequila brands including 1800, Maestro Dobel, Gran Centenario and Kevin Hart’s Gran Coramino. The company also owns Bushmills Irish Whiskey, Proper No. Twelve, Kraken Black Spiced Rum and Stranahan’s Colorado Whiskey. Becle is primarily controlled by the Beckmann family, who have operated the company and its flagship Jose Cuervo for over 250 years.

“During the quarter, we remained focused on strengthening the business through disciplined execution and targeted strategic actions in a challenging and contracting industry environment,” the company said in a statement.

Elsewhere in its presentation, Becle attributed the slump to the “continued softness in full-strength spirits consumption” and the negative foreign exchange rate between Mexico and the United States.

The biggest contributor, however, was likely its distribution network. At the beginning of January, Becle parted ways with Republic National Distributing Company in nearly all markets nationwide. The announcement came less than a year after Jack Daniel’s owner Brown-Forman separated from the distributor in key states, followed soon after by Tito’s Handmade Vodka and High Noon. Earlier this week, RNDC warned of nearly 2,800 layoffs within its company, pending a transaction with rival Reyes Beverage Group.

As Becle finds its footing with a new distributor, net profits are all but certain to tick upwards in the United States. By how much, it’s hard to say.

Tequila is one of the only spirit categories projected for continued growth in 2026, pegged to stabilize at around 1% by the middle of the year, compared to an overall decline of -4.09% for liquor demand at large.

Becle is the biggest mover and shaker within its category, responsible for almost 30% of the market share by volume. The company, however, is not particularly diversified when it comes to super-premium or additive-free tequilas, two of the fastest-growing niches within the industry over the past five years.