The world's oldest licensed distillery.NORTHERN IRELAND TOURIST BOARD
The world’s oldest tequila maker is now the owner of the world’s first licensed distillery following a deal with Diageo, the world’s largest spirits maker.
The owners of José Cuervo tequila have given up the Don Julio tequila brand in exchange for Bushmill’s Irish whiskey. Diageo announced today that it will get 50% of Don Julio from the Beckmann family, owners of José Cuervo, in exchange for Bushmills Irish whiskey, giving it full ownership of the high-end tequila.
Don Julio is the best-selling “ultra premium” tequila in the United States: sales in the year ended June 30 were up about 27%. The brand’s prices range from $45 to $375 a bottle.
The deal also includes a cash payment to Diageo of US $408 million, and ends José Cuervo’s production and distribution of Smirnoff vodka in Mexico.
Diageo used to have a distribution agreement with José Cuervo but it expired in 2012 after it was unable to reach a deal with the Beckmanns to buy it. The new deal will allow it to get back in to the tequila business in a big way, although it had recently regained some presence in the tequila market by buying two smaller brands, DeLeon and Peligroso.
Sales of Don Julio tequila totaled $168 million in its last fiscal year while Bushmill’s revenues were $91.2 million.
José Cuervo said the acquisition of Bushmills is “the most important acquisition the company has ever made.”
“This is a very exciting time for both Bushmills Irish Whiskey and José Cuervo. We see this acquisition as a fantastic opportunity to continue to nurture and grow the Bushmills Irish Whiskey brand globally, underpinned by the strong expertise and focus of José Cuervo as one of the world’s leading drinks corporations.”
Bushmills was founded in 1608, José Cuervo in 1795.
Diageo’s Mexico chief said in a recent interview with El Financiero that the company’s sales by volume in Mexico were up 12% last year, compared to industry-wide growth of just 7%. Erik Seiersen said Diageo has 70% of the whiskey market here, with Johnny Walker Red Label and Buchanan’s 12 leading the way.
The deal with José Cuervo will close early next year.
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