Key Players Facing Sales Declines
Mexican companies, including Grupo Bimbo, Gruma, and José Cuervo, have experienced sales declines in the United States, one of their primary external markets. This downturn is attributed to reduced volumes, price drops, shifts in consumer preferences, and increased competition from local and proprietary brands.
Sales Trends for Major Mexican Companies
- José Cuervo: The world’s leading tequila producer saw the most significant drop, with a 9% decline in alcoholic beverage sales from January to April 2025.
- Tequila Sales: Tequila sales fell 3% due to a 5% price reduction, while volume increased by 2%. The ready-to-drink cocktail category dropped 11%, losing 220 basis points of market share.
- Whisky and Rum: Whisky sales declined 13% due to a 13.5% volume drop, and rum sales decreased by 10% due to weak volumes.
According to Barclays analysts, the average company volume contracted by 7.5%, accompanied by a 2% interannual average price decrease in March and April.
Comparison with the U.S. Market
In contrast, the overall U.S. market showed a 1% volume growth in some categories, while prices fell by 1.4% during the same period.
Impact on Specific Companies
Grupo Bimbo
The bakery group experienced a 6% total sales decline, affected by weak performance in groceries, which constitute 96% of its business. Pan, sweet snacks, buns, bagels, and salty snacks all saw similar drops due to lower volumes and reduced prices.
- Market Share Loss: Bimbo lost market share in its key categories, with pan, sweet snacks, buns, and bagels showing inferior performance in April, losing 53, 26, 67, and 275 basis points of market share compared to the previous year.
- Wrapped Bread Penetration: Wrapped bread penetration fell to 40%, down 130 basis points from 2024. Enveloped bakery reached 64%.
Bimbo lost sales to Flowers Foods and Lewis Brothers Bakeries but gained the majority of proprietary brand sales, according to the Barclays report.
Gruma
Gruma reported a 3.5% sales decline in tortillas and corn products. Tortillas and salty snacks dropped by 1.2% and 1.8%, respectively.
Barclays analysts noted that Gruma’s revenue decrease stemmed from negative volumes, as prices remained mostly stable since April 2024.
- Hispanic Market Performance: Gruma lost sales in the Hispanic population compared to the same period last year, with a 1.3% decline, primarily driven by brand changes.
- Non-Hispanic Market Performance: Gruma gained sales in the non-Hispanic population, increasing by 6.3%, mainly due to category expansion.
Gruma lost sales to Ole Mexican Foods but gained against proprietary brands and Tyson Foods, according to the report.
