An American-founded Japanese company, Beam Suntory is the third largest producer of distilled beverages worldwide, specialising in premium spirits. The company recently reported a strong first half, driven by a new premiumization strategy.
As per the report, the company saw a 13% increase in net sales for the maker of Jim Beam and Maker’s Mark bourbon, Courvoisier cognac, and Hibiki Japanese whisky, reflecting a 25% increase in sales against the pre-pandemic period in 2019.
A double-digit sales gains in markets across the United States, Spain, United Kingdom, India, Australia, and Emerging Asia, as well as high-single-digit sales growth in Japan, and the favourable timing of shipments all contributed to the glowing results. Sales grew at more than twice the rate of case volumes, an indication that Beam Suntory’s premiumisation agenda is paying dividends. By region, sales were up 13% in North America, 10% in Asia and 20% in Beam Suntory’s International region.
“The fact that we were able to deliver these strong results in a challenging period underscores the resilience of our markets, quality of our brands, and the significant impact of our premiumization strategy,” said Albert Baladi, President and Chief Executive of Beam Suntory.
The company recently announced a $400 million investment in its Booker Noe distillery in Boston, Kentucky. By brand family, global priorities such as Maker’s Mark and Basil Hayden bourbons as well as The House of Suntory’s Roku Gin and Toki Japanese Whisky were all up by a strong double digit. Super premium brands demonstrated meaningful momentum, with particularly strong double-digit growth from Yamazaki, Knob Creek, Laphroaig, Bowmore, and El Tesoro Tequila. Regional priorities also delivered strong growth, as sales for On The Rocks Premium Cocktails doubled and Oaksmith International Blended Whisky nearly tripled, while Teacher’s Whisky and Larios Gin drove strong double-digit gains.
Additionally, the company’s Proof Positive initiative has pledged more than $1 billion in investments that positively impact the environment. The company has made bold commitments to leave sustainable, positive impacts on nature, consumers and communities. The company will release its first sustainability report later this month.
“We expect that the external environment will be even more challenging in the second half of the year and into 2023, and we are well-positioned to deliver against both our short- and long-term ambitions through the strategies we have in place, and investments we’re making in our future,” adds Baladi.
Beam Suntory has also outlined plans to relocate its global headquarters to New York City in September, strategically placing global leadership and brand teams in a world-class city at the forefront of luxury, culture and consumer trends, which will be a critical driver in Beam Suntory’s strategy to build premium global brands.
“Beam Suntory is truly coming into its next chapter of growth as a company,” said Baladi. “Our results demonstrate the strength of our operating model, investments in the future, and the unique East-meets-West culture that we have created, which gives us a competitive advantage.”