Diageo are planning to enter the tequila market by taking over Jose Cuervo.
Jose Cuervo is a family run business. Currently Diageo have the international distribution rights to market and sell Jose Cuervo tequila, however, this contract is due to expire in 2013.
The FT reported that at the moment neither the Diageo spokewoman or Jose Cuervo’s advisers, Barlcays Capital, had anything to say on the matter.
It is thought that Jose Cuervo is worth around $3 billion. Bloomberg believe that Diageo is hoping to purchase Jose Cuervo at a 50% discount.
The Cuervo family started making tequila in Mexico during that 1800’s and started distributing their products in 1880. They were the first company to commercially product tequila for an international market. The company is owned by the Beckmann family today who are descended from the Cuervo family.
The José Cuervo Especial brand is the biggest selling brand of tequila in the world. Tequila is the key ingredient in one of the most popular cocktails in the world, the Margarita.