Becle S.A.B. said depletion growth was strong across all regions during the third quarter, including the second consecutive quarter of 5% depletion growth in the US & Canada region.
“We also continued to generate significant market share gains in tequila in Mexico and are expanding our exposure to the premium tequila category with the launch of Jose Cuervo Tradicional Cristalino to drive additional market opportunity and market share gains.
Net sales increased 11% during the third quarter, driven by 8% volume growth and continued favorable sales mix as a result of the strength of our premium spirits offerings that more than offset unfavorable foreign currency impacts in many international markets, the company said.
Despite cost pressures resulting from increase in third party supply, Becle said it is enjoying favorable trends across its portfolio and geographical regions and remain well positioned in each of our markets and categories.
The third quarter volume increase represented 5.1 million nine-liter cases. The year-over-year growth reflected a 4.6% increase in the United States and Canada, a 15% increase in volumes in Mexico and a 6.3% increase in the Rest of World (RoW) region. The consolidated volume increases reflected depletion growth across each geographical region.
Net sales in the U.S. and Canada increased 8.9% versus the same period last year, a result, the company, of a combination of volume growth and favorable sales mix toward premium spirit brands.
In the same period, Mexico net sales increased by 23.7% over the prior year period as a result of volume growth, favorable sales mix toward premium tequila products and higher average pricing. Net sales of the RoW increased by 1.2% over the third quarter of 2017 as volume growth and favorable sales mix were partially offset by unfavorable foreign currency exchange.
Volume of Jose Cuervo increased 1.7% compared the same period in 2017 and represented 31.4% of total volume for the third quarter of 2018. The Company’s Other Tequila brands represented 16.0% of total volume with volume increasing 10.4% compared to the prior year period.
The Company’s Other Spirits brands represented 18.8% of total volume in the period and experienced a 13.8% increase in volume over the third quarter of last year. Volume of Non-alcoholic and Other represented 21.2% of total volume and volume grew 12.7% compared to the prior year period. Volume of ready-to-drink (RTD) represented 12.5% of total volume and grew by 6.5% compared to the prior year period.