Grupo Cuervo Reports Decline in Third-Quarter Sales
The tequila producer saw a 10 percent sales drop for the quarter ending in September 2026.
Updated on Oct. 30, 2026 in Cocktails
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Grupo Cuervo reported a 10% decrease in total sales to $492 million for the third quarter ending in September 2026. The company also saw its EBITDA fall by 51% to $77 million during the same period.
Why it matters
The company cited a transition to new distribution partners in the United States and the normalization of inventory levels across its system as primary factors for the decline. These shifts reflect internal restructuring efforts aimed at optimizing long-term logistics and supply chain operations.
Total sales volume dropped 5.6% to 5.7 million 9-liter cases, while the Jose Cuervo and 1800 brands each saw volume declines of approximately 3%. Sales in the U.S. and Canada fell 7.6% to $273 million, representing a 3% decrease in volume.
The players
Grupo Cuervo
This Mexican spirits company is the world's largest producer of tequila and the owner of the Jose Cuervo brand.
Proximo Spirits
This company acts as the U.S.-based importer and distributor for the spirits portfolio of Grupo Cuervo.
The details
Proximo Spirits replaced its distribution partnership with RNDC by forming new agreements with Breakthru, Johnson Brothers, and Southern Glazer's. This logistical overhaul coincided with a broader effort to stabilize inventory levels within the North American distribution system.
Timeline
September 2026 marked the end of the fiscal third quarter for Grupo Cuervo.
Culture Shift
This performance reflects the broader post-pandemic normalization of global spirits inventory levels across the beverage industry. It highlights how major producers are currently recalibrating their distribution networks to match changing consumer demand and inventory capacity.
Consumers may notice changes in brand availability or shelf placement as the company shifts between major distributors in the U.S. market. These transitions are generally focused on back-end logistics and are unlikely to impact retail pricing for the average shopper.
The takeaway
The recent decline underscores the complexities of managing international distribution networks during periods of inventory adjustment. Investors and consumers should monitor how these new partnerships impact the availability and performance of flagship tequila labels in the coming quarters.
Further reading
For more information on industry trends, visit the Cocktails section.
Source note: This article includes information reported by Shanken News Daily.
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