Jose Cuervo Tequila Eyes Price Increase Following a 41% Profit Surge in 2023

(Photo: Becle)

Following over a decade of consecutive growth, tequila exports to the United States took a 4.2% dip in 2023. According to some insiders, the market is heading toward stabilization. Others pessimistically argue that a bubble is about to pop.

Sales figures from some of the industry’s biggest names, however, paint a more complex picture.

Becle, the world’s largest tequila producer, recently announced a promising 41% jump in profits for the last three months of 2023. Buoyed by premium brands and a growing range of non-alcoholic options, the company claims that it is “optimistic about its growth trajectory” and plans to increase prices accordingly.

“The slowdown in consumer demand for spirits in several markets indicates normalizing trends after two years of exponential growth,” said Becle in its financial report. “However, the strength and continued demand for our brands shows our confidence in recovering the momentum of our movement in 2024 […] In the case of the United States, we implemented price increases for the month of January on a high percentage of SKUs.”

In addition to Jose Cuervo, Becle heads up labels like 1800, Maestro Dobel, Gran Centenario and Kevin Hart’s Gran Coramino. The spirits juggernaut — founded in 1795 at the oldest continually operating distillery in Latin America — is currently valued at around USD 7.8 billion.

Though Cuervo is arguably best known within the budget-friendly category, price increases aren’t merely a result of inflation.

The US tequila market has witnessed a schism between $100 plus “ultra-premium” brands and the old guard of college dorm party shot, bright-green margarita fodder. Increasingly, consumers are opting for the former, saving their purchase power for a single bottle of higher quality. Adjusting to the shift, Becle has emphasized premium-oriented releases like Gran Centenario Cristalino and Reserva de la Familia, sold in elegant bottles priced at around $90 and $150 respectively.

While it’s unclear which side of the agave spirits market will ultimately win out, Cuervo is positioning itself to accommodate either or.

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