Jose Cuervo owner picks new U.S. distributor after Diageo backs out

Fri Mar 1, 2013 10:25am EST
 
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March 1 (Reuters) - The family that owns Jose Cuervo Tequila said on Friday that they will use Proximo, their family-owned U.S. distributor, to sell Cuervo in the United States and Canada, following the expiration of their deal with Diageo Plc on July 1.

The move comes after talks broke down in December between Mexico's Beckmann family and Diageo, the world's biggest spirits company. Diageo had wanted to buy a stake in Cuervo, the world's top-selling tequila, saying that merely distributing it was not profitable enough.

Proximo, which already sells 1800 Tequila, Three Olives Vodka and Hangar One Vodka, will take control of the U.S. distribution of Cuervo on July 1.