WEBVTT - Bloomberg's Bain on Cuervo Planning a $1 Billion IPO (Audio)

0:00:01.560 --> 0:00:04.880
<v Speaker 1>He is taking stock with Kathleen Hayes and Pim Box

0:00:05.040 --> 0:00:09.799
<v Speaker 1>on Bloomberg Radio. Jose Quervo brand of tequila was founded

0:00:09.840 --> 0:00:14.000
<v Speaker 1>back in seventeen and today it is the best selling

0:00:14.040 --> 0:00:18.960
<v Speaker 1>tequila in the world. Well, the family that controls Jose

0:00:19.160 --> 0:00:24.000
<v Speaker 1>Quervo the direct descendants of the namesake founder, the Beckman family.

0:00:24.480 --> 0:00:27.520
<v Speaker 1>Will they bring the company public? Let's find out more

0:00:27.640 --> 0:00:30.840
<v Speaker 1>from Ben Bain, he is our Latin America reporter for

0:00:31.080 --> 0:00:34.040
<v Speaker 1>Bloomberg News. Ben, thanks very much for being with us.

0:00:34.200 --> 0:00:38.000
<v Speaker 1>Tell us about this potential initial public offering, who is

0:00:38.159 --> 0:00:41.520
<v Speaker 1>behind it, what would it do to benefit the company,

0:00:41.680 --> 0:00:45.720
<v Speaker 1>and when is it expected? If if ever? Sure? Yeah,

0:00:45.760 --> 0:00:48.120
<v Speaker 1>thanks so much. Um. It's not the first time that

0:00:48.200 --> 0:00:51.120
<v Speaker 1>we've heard rumblings about a Quervo i p O, but

0:00:51.120 --> 0:00:54.760
<v Speaker 1>but it seems as though things are more advanced than previously.

0:00:55.240 --> 0:00:57.840
<v Speaker 1>We're hearing we could see this i p O as

0:00:57.880 --> 0:01:00.360
<v Speaker 1>soon as the third quarter of this year, at least

0:01:00.400 --> 0:01:04.080
<v Speaker 1>that's what UM. We understand the company's targeting UM and

0:01:04.160 --> 0:01:07.560
<v Speaker 1>it could be worth up to a billion dollars, so

0:01:07.600 --> 0:01:11.280
<v Speaker 1>it would be a pretty significant especially in Mexico where

0:01:11.360 --> 0:01:13.520
<v Speaker 1>we've had a pretty dead I p O market. We

0:01:13.600 --> 0:01:14.960
<v Speaker 1>just had one I p O this year, it was

0:01:15.080 --> 0:01:17.400
<v Speaker 1>much smaller. UM, so this would be this would be

0:01:17.400 --> 0:01:20.120
<v Speaker 1>a pretty big deal here in Mexico. UM. The company

0:01:20.200 --> 0:01:23.240
<v Speaker 1>is still set to be deciding what to do with

0:01:23.280 --> 0:01:26.720
<v Speaker 1>the money they could raise. UM. It could be used

0:01:27.040 --> 0:01:30.000
<v Speaker 1>for for things like, uh, we we've heard paying down

0:01:30.080 --> 0:01:33.320
<v Speaker 1>debt um or potentially you know, even more of an

0:01:33.400 --> 0:01:36.240
<v Speaker 1>acquisitive move UM. But the company is set to still

0:01:36.280 --> 0:01:39.600
<v Speaker 1>kind of be considering that and UM, you know, basically

0:01:39.640 --> 0:01:41.600
<v Speaker 1>it's a little bit wait and see. Since we first

0:01:41.600 --> 0:01:44.880
<v Speaker 1>reported this in March, so we understand things are more advanced.

0:01:44.880 --> 0:01:49.640
<v Speaker 1>The company has hired banks JP Morgan Morgan Stanley, UM

0:01:49.760 --> 0:01:54.000
<v Speaker 1>and locally Santander UM and also GBM to work on

0:01:54.040 --> 0:01:57.760
<v Speaker 1>the deal. So Ben of course, the tequila market, the

0:01:57.840 --> 0:02:00.760
<v Speaker 1>industry has has gotten so big, right, there's a lot

0:02:00.800 --> 0:02:05.760
<v Speaker 1>of tequila makers now it's a very popular spirit. Uh

0:02:05.960 --> 0:02:10.359
<v Speaker 1>what what what does this mean for tequila broadly? Uh,

0:02:10.440 --> 0:02:12.760
<v Speaker 1>in the Mexican economy, if they're going to have it

0:02:12.800 --> 0:02:15.679
<v Speaker 1>could be a billion dollar I p O. Yeah, I mean,

0:02:16.200 --> 0:02:19.720
<v Speaker 1>you're you're completely right. I mean tequila is UM, you know,

0:02:20.040 --> 0:02:22.720
<v Speaker 1>it's such a big deal globally, it's it's it's it's

0:02:22.800 --> 0:02:25.440
<v Speaker 1>kind of a growing drink of choice, um you know

0:02:25.480 --> 0:02:28.800
<v Speaker 1>for people around the world. Um, and in Mexico. UM

0:02:28.840 --> 0:02:32.440
<v Speaker 1>you know, the Backman family has been um you know,

0:02:33.000 --> 0:02:37.400
<v Speaker 1>trying to really kind of build on that momentum um. Uh.

0:02:37.520 --> 0:02:42.120
<v Speaker 1>Bloomberg reported, uh you know recently that the Backman family

0:02:42.200 --> 0:02:45.680
<v Speaker 1>is planning to transform the town around Tequila Mexico, which

0:02:45.720 --> 0:02:47.680
<v Speaker 1>is where uh you know a lot of um, a

0:02:47.720 --> 0:02:51.160
<v Speaker 1>lot of the tequila is basically made, um, to kind

0:02:51.160 --> 0:02:53.919
<v Speaker 1>of turn it into almost a Napa Valley like destination,

0:02:54.040 --> 0:02:57.880
<v Speaker 1>um you know for tourists. So certainly raising money, UM

0:02:57.919 --> 0:03:00.639
<v Speaker 1>you know, a billion dollars um you know, would would

0:03:00.680 --> 0:03:03.720
<v Speaker 1>go a long way, um potentially um in terms of

0:03:03.800 --> 0:03:07.359
<v Speaker 1>expanding tequila further. Jose where was certainly not the only

0:03:07.360 --> 0:03:10.280
<v Speaker 1>game in town either, um in the growing tequila markets,

0:03:10.280 --> 0:03:12.600
<v Speaker 1>so um, you know, would give them more firepower to

0:03:12.639 --> 0:03:15.880
<v Speaker 1>continue to lead away. Ben bayin terrific reporting, terrific story.

0:03:15.880 --> 0:03:19.000
<v Speaker 1>He's our emerging markets left town reporter Latin American for

0:03:19.000 --> 0:03:21.320
<v Speaker 1>Bloomberg News, joining us from Mexico City