JOSE CUERVO

HISTORY Spaniards were introduced to pulque, which led to mezcal. Tequila first was produced in the 16th century from blue agave. In 1758 Jose Antonio de Cuervo Valdes obtained land from the King of

Spain. In 1795 Cuervo began production. Jose Cuervo is located in Tequila, Jalisco, Mexico. In 1884 tequila began exportation to the United States.

Jose Cuervo has always been family owned and is currently run by the sixth generation .

Jose Cuervo is owned by Grupo Cuervo, which is made up of the Cuervo heirs Juan Beckmann Gallardo and his son Juan Beckmann Vidalo and Luis Campos. Juan Beckman has a net worth of $2.4 billion and his son “Dobel” is worth $1 billion.

INVESTOR RELATIONS Jose Cuervo total assets as of September 2015 was $821 Million USD. On February 27, 2015 Jose Cuervo sold off its Tequila Don Juilo to Diageo.

They received 100% of Bushmills Irish Whisky. In order to do this they had to take a 500 Million USD short term loan.

Cuervo had used Diageo to export to other markets but the relationship ended and now Cuervo uses Proximo Spirits.

Cuervo exports to over 120 countries.

JOSE CUERVO IN THE UNITED STATES Worldwide the tequila market is around 3 billion dollars. The United States accounts for almost 80% of all tequila sales. This is

estimated to be around 2.4 billion dollars. Jose Cuervo makes up about 33% of the total market share in the U.S.

followed by Patron with 15% and Sauza with 14%. In Jose Cuervo’s most recent report their U.S. sales from December to

September 2015 were 577 million. In 2014 Jose Cuervo sold over 3 million 9 liter cases to the to the United

States.

ENVIRONMENTAL / PUBLIC RELATIONS Blue Agave is considered a cash crop, and can take up to 10 years to

harvest. This makes it very susceptible to changes in weather, invasive species, bacteria for example fusarium are just a few examples.

Jose Cuervo participates and has created programs to help environmental awareness.

Gudalajara Environmental Management Pilot Jose Cuervo Foundation

Improving Liquid Waste Facilities

Jose Cuervo sustainable surf board made from agave:

OWNERSHIP AND NEW VISION

Transformation of Tequila, Jalsico into a fancy get away. In 2003 number of visitors to Cuervo distillery in Tequilla was 18,000.

In 2014 that number was 130,000

Beckmann family goal is to have 1.5 million by 2020.

Jose Cuervo is trying to build a classier image around its company. For example using the Jose Cuervo Express.

WE HAVE BEEN DRINKING TEQUILA WRONG…

How to sip a tequila: Swirl the tequila to release the scent, part your mouth slightly, and inhale deeply (just don’t snort the tequila, because that would be really painful).

Bring the glass up to your lips and let the tequila touch the tip of your tongue.

Then take a small sip and let the tequila run down your tongue and around your entire mouth don’t swallow immediately.

Swallow only after the tequila has coated your entire mouth.