Beam Suntory hit by economic volatility

Beam Suntory’s reported sales were knocked by adverse exchange rates in the first six months of 2016, but a number of key brands experienced “strong gains”.

Net sales of the group’s alcoholic beverage segment – spanning spirits, wine, RTDs and beer – fell from 477 billion yen (US$4.7bn) in H1 2015 to 468bn yen (US$4.6bn) in H1 2016.

Beam Suntory highlights the positive contribution of the Americas region, led by mid-single-digit growth in the US where Jim Beam, Maker’s Mark, Courvoisier, Sauza, Hornitos, Basil Hayden’s and Effen Vodka grew.

“Strong sales” were noted internationally, with “robust” growth in Western Europe, Russia, Australia, India, Southeast Asia and Global Travel Retail, benefiting from Beam Suntory’s Malts of Distinction campaign and the performance of Canadian Club, Courvoisier and Maker’s Mark.

Demand for Teacher’s Scotch whisky in India and Larios gin in Spain also bolstered results.

Beam Suntory’s Japan business – Suntory Spirits Limited – remains the fastest-growing market for the Jim Beam brand, which saw volume growth of 49% in the country following the successful promotion of the Jim Beam Highball.

In total, Suntory Spirits Limited witnessed sales growth of 3% from January-June, also boosted by the unit’s RTD brands.

Looking across it’s entire food and beverage business, Suntory Holdings, parent group of Beam Suntory, said: “For the period ending in December 2016, the company is anticipating sales of 2.73 trillion yen, up1.6% year on year, operating income of 188 billion yen, up 1.6% year on year, ordinary income of 160 billion yen, up 2.4% year on year, and net income attributable to owners of parent of 50 billion yen, up 10.5% year on year.”