Sales in Mexico fell 13.7%, to 2,603 million pesos; while in the United States and Canada they showed a decrease of 5.2% to 6,134 million pesos, the company indicated, which leaving out the exchange rate variation would have been an increase of 12.5%.
During the third quarter of 2023, total sales volume, which refers to sales by case, decreased 4.5%, to 6.5 million nine-liter cases. The year-over-year decrease is explained by a 23.5% decrease in volume in the Mexico region.
It also recorded a 3.2% year-on-year decline in the Rest of the World (“RoW”) region, primarily due to the economic slowdown in Europe, the Middle East and Africa and macroeconomic challenges in Latin America.
This decrease was partially offset by a 6.8% increase in volume in the United States and Canada region, primarily due to the strong performance of our super and ultra premium tequila brands.
By category, in the quarter, Jose Cuervo’s net sales decreased 5.3% compared to the same period in 2022. This brand represented 35.3% of sales for the period. Net sales of Other Tequilas, which represented 37.3% of total net sales for the period, decreased 3.2% compared to the same period last year.
Other Spirits represented 18.5% of total net sales in the period, experiencing a decrease of 17.2% compared to the third quarter of the previous year. Net sales of Non-Alcoholic Beverages and Others represented 2.7% of total net sales and decreased 20.8% compared to the same period of the previous year. ‘RTD’ net sales represented 6.2% of total net sales, with a contraction of 20.3% compared to the same period of the previous year.
“Our continued focus on premiumization and optimization of our portfolio has allowed us to grow above the industry. “The continued demand for our core brands and the popularity of tequila reinforce our confidence in the lasting value of our brands,” management said in the financial report.