Who is behind José Cuervo?
The company, which has been led by the same family for eleven generations, is 70% owned by Juan Francisco Beckmann and 30% by his son Juan Domingo Beckmann, who is the company’s current CEO.
The tequila company successfully debuted on the Mexican Stock Exchange (BMV) on February 9, 2017 with an initial price of 34 pesos per share. After waiting several months, the company finally released its shares and closed up 4.20% on its first day.
Five years earlier, in 2012, José Cuervo had broken off negotiations with Diageo, one of the world’s largest distributors, to try to compete as a global player. Also in 2013, the company ended an international distribution agreement of more than three decades with Diageo. That year he began with the distribution of tequila in the United States through Próximo Spirits.
After facing ups and downs in the stock market, the company managed to come back in 2020, and by April 4, 2021, its shares were sold at 47.20 pesos each, with a slight advance of 0.43% compared to the previous day. The maximum price in the company’s listing was registered on January 13, 2022, when it reached 53.40 pesos per share, at the close of the day. The company currently has a market cap of 169,495 million pesos.
Cuervo’s strategy to grow
According to Ramón Martínez Juárez, a professor and business expert at the Banking and Commercial School, the company has managed to consolidate itself in the market thanks to its business strategy, its clear financial structure and its ability to adjust to market trends.
“It is a company that has managed to maintain the business model, consolidating itself in Mexico and with a clear commitment to being one of the leading global brands,” he says.
Another of the keys to the success of José Cuervo has been the integration of its own brand with the designation of origin of tequila, which has allowed it to reach different market segments, from standard to premium brands. The expert points out that José Cuervo managed to grow even after the crisis that Mexico experienced in the 1990s. “It was a very important crisis that affected many companies in the country, but José Cuervo managed to overcome it thanks to his business model and its ability to adapt to changes in the market,” says Martínez Juárez.
“In the last decade, the company has achieved a good presence in markets such as the United States, which is the most important market for tequila and where they have maintained a good presence with their distributor,” says the business specialist.
José Cuervo closed a merger with the distributor Próximo Spirits in 2016. The partnership has resulted in mutual success for both companies, with Cuervo expanding its presence in the spirits market and Próximo Spirits increasing its portfolio of brands. The distributor has a wide network that has helped the tequila company reach new markets and increase its presence in existing ones.
In 2022, the company reported growth in its consolidated net profit of 16.8%, reaching 5,881 million pesos. Total revenues increased 16% to 45,729 million pesos, while operating flow grew 24% to 9,843 million pesos.
“Our conviction to position tequila as a premium spirit is proving correct,” management said in its latest financial report submitted to the Mexican Stock Exchange.