Overview: Grupo Cuervo reported a 10% decline in sales totaling $492 million for the fiscal third quarter ended in September. Volume dipped 5.6% to 5.7 million 9-liter cases, while EBITDA plunged 51% to $77 million. North American operations accounted for 56% of global total, with sales slipping 7.6% at constant currency to $273 million on volume down 3% to 3.3 million cases.
The Full Story
The company attributed the performance to a distributor transition continuing to progress and inventory levels across the system normalizing. Earlier this year, Proximo Spirits unit announced a new U.S. distribution alignment, partnering with Breakthru, Johnson Brothers, and Southern Glazer’s in new markets while parting with RNDC. Among Proximo’s key brands in the U.S., upscale Tequilas Centenario and Gran Coramino are up by strong double-digits in volume in control states so far this year, as is the 400 Conejos mezcal brand. Leading Tequila labels Jose Cuervo and 1800 each slipped by around 3%, while Irish whiskies Proper No. Twelve and Bushmills faced steeper declines of -11.4% and -9.4% respectively. Pendleton Canadian Whisky volume down -4.1%, Three Olives American Vodka flat at 0.6%, and The Kraken Imported Rum volume down -5.8%. Pre-Mixed Cocktail categories also saw volume down -2.3% for Jose Cuervo Margaritas and -12.7% for 1800 Ultimate Margarita. Total Proximo 2026 YTD volume down -1.8% ending September.
What This Means
During the third quarter, the realignment of U.S. distribution continued to progress, with the portfolio outperforming the broader full-strength spirits market in largest transition markets returning to growth. The company remained focused on disciplined execution, protecting brands and financial strength, and committed to creating sustainable value over time.
Consumer Takeaway
For the drinker, the data highlights a divergence within the portfolio where upscale Tequila and Mezcal brands like Centenario, Gran Coramino, and 400 Conejos show strong volume growth in control states despite broader declines for legacy labels and pre-mixed cocktails.
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