Jose Cuervo is the world's top-selling tequila. Combined sales of Cuervo and its 1800 offshoot were over 7.0m cases in 2015, primarily in the US and Mexico. Impact estimated retail value of $1.05bn. Cuervo claims to be the oldest tequila, first produced by the Cuervo family in 1795 under royal warrant from the King of Spain. Although widely associated for many years with Diageo, which managed all distribution outside Mexico for more than 10 years, Jose Cuervo has always been privately owned by the Beckmann family, descendants of the original Jose Cuervo. The alliance with Diageo had become increasingly fractious by 2012, with the Beckmanns repeatedly stonewalling attempts by Diageo to buy the business outright for as much as $2bn. As a result Diageo declined to renew its distribution contract when it expired in summer 2013. Instead North American distribution was absorbed by Proximo Spirits, a distributor owned by the Beckmann family, and performance has improved significantly. The following year, Cuervo transferred ownership of its second-string tequila Don Julio to Diageo in return for the Bushmills Irish whiskey brand and payment to Diageo of $408m in cash. Cuervo's next most important brand is Three Olives vodka (1.7m cases in 2015, with retail value of $375m). Bushmills sells around 580k cases and Kraken rum 550k. Juan-Domingo Beckmann is the CEO of Grupo Tequila Cuervo. The group issued an enormously successful IPO of around 15% of equity in early 2017. Revenues were around $880m in 2015. Total volumes were 18.2m cases. Adbrands does not currently profile this company but subscribers may access account assignments and contact information. The searchable account assignments database is available to full subscribers to Adbrands.net premium services. Click here to access Adbrands account assignments (subscribers only); or see here for information on how to subscribe.
Capsule checked 15th February 2017
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Adbrands Weekly Update 9th Mar 2017: Ads of the Week: "Last Days". Here's a true return to form for Crispin Porter & Bogusky, whose work we haven't found reason to feature in these pages very often for some time. This, though, for Jose Cuervo tequila, is a gem. Black humour, a dash of romance, fine direction and splendid effects. What more could you want from an ad? A big punchline to round it all off might have added a touch more oomph, but the overall package is very nice just as it comes.
Adbrands Weekly Update 6th Nov 2014: Diageo admitted defeat in the Irish whiskey market but strengthened its position in tequila in a brand swap with former client Jose Cuervo. It has agreed to sell its sole Irish whiskey brand Bushmills - a distant #2 to Pernod-Ricard's all-conquering Jameson - to Casa Cuervo in part-exchange for the latter's second-string brand Don Julio and $408m in cash. Until last year, Diageo distributed both Don Julio and its much larger stablemate Jose Cuervo under contract. Cuervo took back distribution duties for its lead brand but left Don Julio with Diageo. The deal allows Cuervo and distribution arm Proximo Spirits to further widen their portfolio of non-tequila spirits.
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