By Sacha Delfosse

Diageo has announced that its planned acquisition of Jose Cuervo tequila has ceased and it will stop distributing the brand next year.

Both Diageo and JB y Compania S.A. de C.V. and Lanceros S.A. de C.V. (the owners of Jose Cuervo) agreed to end discussions after failing to reach an agreement regarding the brand's future.

They will both now work towards an orderly termination of their current distribution agreement, including transitional arrangements, which ends in June 2013.   

"We believe that the future of the brand would be best delivered by aligning ownership of the brand with its route to market and I have no doubt that Diageo has the best route to market for this brand," said Diageo chief executive, Paul S Walsh.

"However it has not been possible to agree a transaction which delivers value for Diageo’s shareholders and therefore, by mutual agreement, we have terminated our discussions."

The Shout Team

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