Beam reports record $2.5bn sales

Beam Inc has reported record sales of US$2.5billion in its full-year results, as Jim Beam, Maker’s Mark and Pinnacle vodka continue to outperform their global markets.

Innovation in Beam’s Bourbon portfolio, like the release of Devil’s Cut, has helped deliver double-digit growth

The Illinois-based drinks company reported a 7% sales increase for its 2012 financial year, with profits up 9% to US$1.4bn.

Sales growth was led by higher-than-expected results from Beam’s Power Brands, Jim Beam (10%), Maker’s Mark (15%) and Pinnacle vodka (19%), which collectively grew by 10% overall.

The group’s Rising Stars – brands that show promise in certain markets – delivered a 10% sales increase also, led by Basil Hayden’s (35%), Knob Creek (24%), Skinnygirl (19%) and Laphroaig (15%).

Matt Shattock, president and CEO at Beam, said innovations within the Power Brands portfolio, such as the Jim Beam Devil’s Cut, Jim Beam Honey and Pinnacle Pumpkin Pie launches, had helped deliver the record results.

“Beam continued to deliver excellent results in its first full year as a focused pure-play spirits company,” he said  “Full-year sales growth was balanced across our three regional segments, fuelled by double-digit global growth for our Power Brands and Rising Stars, and we improved margins with premium innovations and higher pricing.

“We are particularly pleased that we outperformed in 2012 even as we increased investment in the competitive position and longterm growth of our business. These investments included a double-digit increase in brand-building investment, as well as higher capital expenditures to produce more aged spirits to meet future demand.”

The results include sales growth data for Kilbeggan (1%) for the first time since its acquisition in January 2012, which has been added to Beam’s Rising Stars portfolio as the group’s Irish whiskey category flagship brand.

Beam’s business continues to deliver strong growth in its core North America market, where sales where up 14.1% to US$1.5bn for the year. Comparably, sales grew 1.3% in Europe, Middle East and Africa (EMEA) and 3.1% in Asia Pacific/ South America (ASPA), where Beam has developed its China and Japan routes to market.

Looking forward to 2013, Beam anticipates that it will continue to outperform the global spirits market, which it predicts will grow by 3%. As such Beam will continue to invest in increasing distillation and ageing capacity to aid growth in emerging markets and continued support for its Bourbon portfolio.

However the group expects “challenging comparisons” in India as it repositions its business there.