Cuervo maker Becle sees more thirst for tequila in U.S., Canada (updated)

Becle SAB de CV

17/02/2023 16:41

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       MEXICO CITY, Feb 17 (Reuters) - Mexican distiller Becle
 CUERVO.MX , parent company of the popular Jose Cuervo tequila
brand, on Friday forecast further sales growth in 2023 as it
expects to increase the volume of spirits sold across North
America.
        In a conference call following its fourth-quarter
results, Becle executives said they expected total sales to grow
by "high single digits to low teens" this year, while volumes in
the United States and Canada should grow by a "mid
single-digit".
        Becle in the fourth quarter posted just under 2% volume
growth in the United States and Canada, driving sales there up
around 4% - in lines with estimates from Barclays.
  
        Barclays analysts said that while Becle's overall
quarterly sales slightly missed their expectations, its profits
performed better than hoped for thanks to stable prices for
agave - a plant used to make tequila - as well as price hikes
and a "better sales mix."
  
        Becle however posted a 12% decline in its quarterly net
profit after a strong 2021, hurt by higher borrowing costs. Its
shares were down nearly 3% in early trading.
        "Our long-held belief in tequila as a top premium spirit
is proving correct," Becle said Thursday, citing estimates from
drinks market analysts IWSR. 
  
        "Tequila recently overtook American whiskey to become
the second most valuable spirit in the U.S. and is set to
surpass vodka by the end of 2023." 
  
 (Reporting by Sarah Morland and Aida Pelaez-Fernandez; Editing
by Anthony Esposito and Brendan O'Boyle)
 ((sarah.morland@thomsonreuters.com;))