Jose Cuervo Maker Warns of Lower 2026 Sales in US Market
Becle expects a transition year as it restructures its US distribution network. Sales are projected to decline slightly amid shifting consumer drinking habits.
The Mexico-based distiller BECLE SAB DE CV, the world's largest tequila maker, has warned of a difficult 2026 as it restructures its distribution network in the United States amid shrinking demand for spirits and a turbulent trade environment. The company, known for its Jose Cuervo brand, recently ended its partnership with the Republic National Distributing Company (RNDC) following a chaotic exit from California late last year. Chief Financial Officer Rodrigo de la Maza informed analysts that the current year will serve as a foundational period for new partnerships. > "This will be a transition year." > "Changes of this scale take time to fully stabilize and may create temporary disruptions, shipping volatility, inventory realignment and added complexity." The financial impact of this restructuring is expected to be most pronounced during the first half of 2026. Management forecasts that net sales value will see a low single-digit decline when adjusted for foreign exchange. Additionally, the company has scaled back its spending plans to a range of $90 million to $110 million, down from the previous year's $130 million. The outlook follows a disappointing fourth quarter in 2025, where sales in the primary North American markets—including Canada—dragged the top line down by 14%. This performance resulted in an earnings miss that initially triggered a 5% drop in share price. Scotiabank analyst Felipe Ucros noted the challenges facing the sector. > "It was a quarter to forget by most measures, and the start of 2026 doesnt look too bright either." Despite these headwinds, the company has managed to maintain profit margins by avoiding the aggressive price-cutting strategies used by some competitors. Lower costs for agave, the primary raw material for tequila, have also provided a buffer for the bottom line. Furthermore, the company reported that its operations remain unaffected by recent security incidents in Jalisco state. Industry data highlights a broader trend of declining spirits consumption, with imports into the American market falling 17% in the first nine months of 2025. While tequila remains protected under regional free trade agreements, the sector continues to face pressure from shifting consumer preferences and economic uncertainty.
