Jose Cuervo to invest up to US$130 million globally by 2025

MEXICO - Jose Cuervo, the world's largest tequila producer with a portfolio of more than 30 spirits brands, expects to invest between US$110 and US$130 million in 2025, while anticipating a challenging year due to more moderate consumption and trade uncertainty with the United States.

“We believe 2025 will continue to be a challenging year. Projections from SteepSource, a reliable source of information, are for a negative performance for the industry. When looking at tequila, the tequila industry is projected to grow by 1.7%,” said the company's General Manager of Administration and Finance, Rodrigo de la Maza.

Faced with an uncertain environment and more cautious consumers, he explained that they estimate that net sales will grow by mid-single digits compared to 2024.

This outlook is based on the assumption that the tariffs that the U.S. government is seeking to impose on imports of products from Mexico will not be applied.

'It will be an interesting and challenging 2025,' he highlighted after estimating that the impact from tariffs will be approximately US$80 million in 2025. This will be the case if mitigation measures are not taken through pricing and operational efficiencies.

Rodrigo de la Maza explained, in his recent call with analysts, that some markets in Europe, the Middle East, Africa (EMEA) and Asia-Pacific (APAC) are offering growth opportunities compared to the U.S. and Mexico regions.

Last year, total sales volumes fell 6.2% to 25.394 million nine-liter cases. This decrease was the result of a 4.1% decline in the United States and Canada, and a 9.3% decline in Mexico.

The main cause was a sharp decline in sales of ready-to-drink beverages, especially in the United States and Canada, due to strong competition.

The executive said that, in order to strengthen its operations in this category, it is working on innovation and the launching of new flavors, among other strategies.