Diageo threatens to drop Cuervo
Diageo threatens to drop Cuervo
Aug 24, 2012 6
(TheDrinksBusiness) - Diageo will drop the José Cuervo Tequila brand from its portfolio unless it negotiates a satisfactory equity stake with the owning Beckmann family.Paul Walsh, Diageo’s chief executive, said yesterday that he was not prepared simply to renew a global distribution deal for José Cuervo when the current agreement expires next year. He would walk away from it instead, he said.
Talks with the Beckmann family have been underway for more than a year and initially Walsh had set an internal deadline of June for concluding them. Yesterday he told a London press conference that the future of the relationship was “in señor Beckmann’s hands” and that Diageo could not control the timetable for future negotiations
Comments