Regardless of a fourth-quarter gross sales slide, Jose Cuervo’s guardian firm mentioned it “outperformed” the US spirits sector in worth progress whereas avoiding heavy discounting for its Tequila.
Mexican spirits agency Becle, which additionally owns 1800 Tequila and Kraken Rum, noticed its full-year income fall by 2% with the Jose Cuervo model down by 3.7%.
The enterprise suffered a 14.1% gross sales drop to MXN11.08 billion pesos (US$645.1 million) within the fourth quarter (This fall) of 2025.
In This fall, the flagship Jose Cuervo Tequila reported a 15.1% gross sales decline alongside a double-digit drop for the group’s ‘different Tequilas’ – which incorporates Gran Coramino and Maestro Dobel.
In an investor name for its full-year outcomes, Juan Beckmann Legorreta, CEO, common supervisor and proprietary chairman, described 2025 as a “yr of navigating challenges” with an “unusually complicated world spirits sector” that he expects will stay in 2026.
However he advised analysts that the enterprise had expanded its management place within the Tequila class and “protected pricing higher than the {industry} commonplace”.
He continued: “We’re proactively assessing market situations to bolster our robust basis for sustained long-term progress.”
Becle’s gross sales of ‘different spirits’, which incorporates manufacturers like Bushmills Irish whiskey, Kraken and Three Olives Vodka, plunged by 14.5% in This fall.
Legorreta mentioned it was necessary to spotlight that spirits proceed to take share from different alcohol segments.
“Inside that context, Tequila continues to outperform different full-strength spirits classes with stable value combine progress, and premiumisation traits remaining intact, favouring our core strengths.
“Cautious of shifting consumption traits, we imagine the present slowdown is usually cyclical, pushed by macroeconomic headwinds and inflationary pressures. Traditionally, the spirits {industry} has skilled intervals of enlargement and contraction, and we anticipate demand to get well as customers’ confidence improves.”
He added the enterprise had entered 2026 with a “wholesome mixture of realism and optimism as we anticipate that the years forward will proceed to require daring changes to place us higher for 2027 and past”.
By way of markets, the US and Canada noticed gross sales fall by 8.4% final yr. The corporate’s house market of Mexico was down by 1.1% and the rest-of-the-world area decreased by 4.4%.
In This fall, US and Canada gross sales dropped by 11.8%, Mexico was down by 12.2% and the rest-of-the-world dipped by 0.9%.
Tequila: ‘most resilient’ class
Mauricio Herrera, managing director of US and Canada, mentioned Becle’s This fall leads to its largest market “mirrored a mixture of continued industry-wide headwinds” and industrial actions that had been taken to “place the enterprise for long-term success”.
He famous that spirits demand “decelerated by means of the again of the half yr” within the US.
Herrera continued: “US spirits traits deteriorated sequentially in 2025, with a slowdown, notably evident to our year-end. Towards this backdrop, Tequila continues to face out as probably the most resilient full-strength spirits class, delivering quantity progress of two.3% within the yr, in accordance with Nielsen information.
“Whereas progress within the broader spirits market has skewed in direction of ready cocktails, Tequila has transitioned from a high-growth section to a extra normalised stabilisation section. It stays a beautiful class and continues to outperform different spirits.”
Becle’s Tequila portfolio additionally “continues to outperform the market”, Herrera advised analysts, with the exclusion of ready-to-drink (RTD) merchandise.
“Knowledge for the three-month interval ending in November exhibits that Proximo continued to outperform the broader {industry} in worth progress inside full-strength spirits and extra particularly throughout the Tequila class,” he defined.
“Nielsen information for 2025 additional helps this efficiency exhibiting that Proximo’s quantity declined 2.5%, outperforming the general market by roughly 100 foundation factors.”
As indicated earlier by the group’s CEO, Herrera mentioned pricing was a “defining characteristic” of its technique in This fall.
“As demand moderated, aggressive behaviour intensified with the general Tequila class experiencing a value decline of roughly 9.2%. By contract, our common pricing decline was restricted to five.1%.”
He famous that the agency, in contrast to its rivals, had averted “aggressive discounting” to guard its model and margin fairness in the long run.
RTDs: ‘engaging progress alternative’
Herrera additionally referred to as out RTDs as “one of the vital engaging progress alternatives” the place the corporate is “underrepresented”.
In This fall, the corporate’s RTD portfolio was flat however for the complete yr it noticed an uplift of 13.8%.
Becle’s RTD portfolio contains Jose Cuervo Genuine Margs, 1800 Genuine Margarita and Playamar seltzers.
He famous that the corporate had elevated its focus and funding behind RTDs within the second half of the yr.
“To additional speed up efficiency on this section, we’re constructing a stronger innovation pipeline and evaluating route-to-market alternate options that improve protection and execution.”
Herrera famous that shipments had fallen “extra sharply than depletions on a quarterly foundation” after the enterprise took a “measured method” to keep away from stock build-up.
He additionally warned that retailers had continued to chop their inventories to “traditionally low ranges”.
The Jose Cuervo maker additionally shifted its distribution within the US and Canada from 1 February, ending its partnership with Republic Nationwide Distribution Firm (RNDC) in all markets aside from Georgia and New Mexico.
“These transitions might introduce some near-term volatility, notably within the first half of the yr, we imagine this alteration will considerably strengthen our industrial basis and place us to compete extra successfully in an more and more dynamic US market.”
‘Unimaginable to estimate’ GLP-1 impression
On a query on the impression of GLP-1s on the Tequila class, Herrera mentioned it was “nearly not possible to estimate”.
“We do see evolving client traits,” he continued. “I believe there’s plenty of various things taking place available in the market for the time being that buyers are in search of totally different alternate options.
“We see the emergence of RTD, we see modifications in patterns of consumption. So attributing any type of impression to GLP-1 turns into, I might say, nearly not possible. So it’s one thing that we do monitor carefully, however at this level, attributing any impression to that’s actually troublesome.”
Herrera voiced optimism for the US spirits market, calling its long-term fundamentals “robust”.
“We imagine Tequila is positioned to be the {industry}’s foremost progress class over the subsequent decade, a pattern that straight advantages Proximo as a class chief.”
Tequila can also be “gaining momentum” throughout the remainder of the world, in accordance with Shane Hoyne, managing director of Europe, Center East and Africa, and Asia Pacific.
However he notes that the area additionally faces the identical stock challenges: “Notably within the first half, elevated stock ranges throughout the broader {industry} impacted cargo patterns as distributors and retailers centered on decreasing working capital and working with decrease stock ranges.”
Pricing can also be “extremely aggressive” within the area, however Hoyne mentioned “discounting exercise seems to have largely stabilised”.
He additionally famous that buyers within the area are switching to Tequila from different spirits classes, like whisky and Cognac, with some drinkers transferring straight into aged Tequila.
‘Lengthy-term potential’
Becle’s common director of administration and finance, Rodrigo de la Maza Serrato, additionally highlighted that the corporate’s rest-of-the-world enterprise has doubled in measurement since 2019 in internet gross sales worth.
“Tequila stays a high-growth class with substantial long-term potential, notably in markets the place penetration stays low,” he added.
Utilizing 2019 as a pre-pandemic reference level, he famous that Becle’s “internet revenues are up 45%, pushed by 10% quantity progress and a 35% improve in common value per case”.
He believes that is pushed by premiumisation, including that the common value per case has risen at a 5% compound annual progress fee (CAGR) since 2019.
By way of steerage for the yr forward, Serrato referred to as 2026 a “transition yr” because of the shift in its US distribution community.
“We anticipate the broader working surroundings in 2026 to stay difficult with restricted visibility given macroeconomic volatility and continued client uncertainty.
“Contemplating these elements, we anticipate internet gross sales worth to say no within the low-single-digit vary in 2026 on a relentless forex foundation.”
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