By Kylie Madry

MEXICO CITY, (Reuters) – Mexico’s Becle distillery, the parent company behind Jose Cuervo tequila, said that prices will rise in 2022 due to rising demand.

Beckmann said that the family who owns the business will seek to reduce the costs of the global supply chain by increasing the price in our markets and portfolios.

According to executives, the company reported an increase of 72% in its net profit Thursday. They expect “mid-single digit” sales growth this year. This is backed up by increased investment.

Fernando Suarez Chief Financial Officer stated that the distiller would invest approximately $250,000,000 in capital expenditures in 2022 and will also spend more on advertising.

Beckmann said that several new brands will be launched by the company this year. This is in addition to over 30 brands already within the Becle portfolio.

The growth was predicted by executives in all regions but especially the United States.

Luis Fernando Felix from Proximo Spirits Inc., Becle’s U.S. subsidiary, said that the tequila category was the fastest growing spirit category, so it is possible that we keep growing.”

After the conference call Barclays (LON.) The company reported better results than they expected.

Analysts stated in a report that Cuervo was “well positioned” to deal with cost headwinds by 2022.

Following the call, shares in Becle rose by 4.6%

($1 = 20.5075 pesos at end-December)