Becle, the Mexican outfit that owns Jose Cuervo, reports the company’s global sales rose 6.4%, in 2017. Sales in the U.S. and Canada increased 2.6% from the 2016 level, reflecting both price increases and a favorable sales mix.
Globally, Jose Cuervo sales rose 1.7%, Becle’s other tequilas rose 9%, its other spirits fell 0.9% and ready-to-drink fell 3.2%.
Consolidated net income for 2017 jumped 50.7% increase from 2016, thanks to: 1) the enactment of US 2018 tax reforms, which resulted in a reduction to net deferred tax liability and 2) a tax loss generated in Becle for 2017.
In a statement, management said: “We generated strong fourth quarter volume and net sales growth of 4.3% and 13.0%, respectively, against very strong growth in the prior year when sales were positively impacted by buy-in ahead of a price increase.
“Tequila growth was robust across our family of brands and we continue to enjoy accelerated growth across our premium brands that is driving higher average net sales per case, both in tequila and across our other spirits brands. Margin performance was equally noteworthy during the fourth quarter as we expanded gross margins and reported 25% EBITDA growth.
“We celebrated many accomplishments during 2017, including our initial public offering and our most recently announced acquisition of the Pendleton Whisky brand assets. We have built a global spirts business with an attractive growth profile and the financial assets to further expand our growth portfolio of brands.”