Cuervo parent Becle expects supply problems to persist, CEO says

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Bottles of Jose Cuervo Tequila rest on a shelf in Mexico City

(Reuters) – Mexican distiller Becle, better known as the parent company of the popular Jose Cuervo tequila brand, expects to see more supply chain problems this year, the company’s chief executive said on Friday.

“We still see a disruption,” said Becle Chief Executive Juan Domingo Beckmann, specifically citing glass supplies.

Beckmann, whose family owns the company, said the disruptions had lessened from the previous year, but that the company does not “know yet when this is going to normalize.”

Challenging supply chain problems were also noted in its first-quarter results released on Thursday, although the company said it was managing those with “logistics mitigation strategies.”

Becle posted a first-quarter net profit of 1.35 billion pesos ($67.9 million), a 9.4% increase over the year-ago first quarter.

Becle was the top gainer on the Mexican stock market’s main index on Friday, closing more than 5% higher despite the overall index dropping some 2%.

($1 = 19.8911 pesos by end-March)

(Reporting by Carolina Pulice; Additional reporting by Kylie Madry and Noe Torres; Editing by Bill Berkrot)

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