Stock Analysts Urge Jose Cuervo to Shift Its Listing to the US; Concern That the Brand Is ‘Significantly Undervalued’

(Photo: Brian Lawless/PA Wire)

Financial analysts are urging Becle, the Mexican tequila giant behind Jose Cuervo, 1800, Gran Coramino and more, to reconsider its strategy.

Marathon Partners Equity Management, a partial owner in the company, believes that Becle is “significantly undervalued” due to its listing on the Mexican stock exchange rather than its US counterpart. Becle — the largest tequila producer in the world — is valued at $8.5 billion and currently trades at around $2.30.

In comparison, rival spirits firm Remy Cointreau is valued at $5.4 billion and listed at $10.20 on the stock exchange. Meanwhile, Constellation Brands — the company behind Modelo, Corona and Pacifico —  is valued at $45.45 billion and listed at $257. Analysts think that the math doesn’t add up for Cuervo.

“We believe the most value would likely be created from a strategic merger combination that results in a larger and stronger spirits organization to better compete on the global stage,” wrote Marathon managing member Mario Cibelli in a public statement.

“Most spirits company portfolios are under-indexed to tequila in the U.S., and outside of Becle, there is no other meaningful way for competitors to increase their exposure to this popular spirit.”

Cibelli believes that Becle should shift its stock listing to the American market for better exposure and financial returns. The move comes weeks after the tequila company announced a 41% profit jump for the end of 2023.

As tequila’s popularity climbs higher year after year, international spirits giants are pouring into the market. Titans like LVMH Moët Hennessy, Diageo and Pernod Ricard have all tossed their hats into the ring over the past few years. Unlike these companies, Becle specializes almost exclusively in agave spirits.

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