Beam’s sales rise despite Asia Pacific slowdown

Beam Inc has reported an increase in net sales for 2013 despite a significant slowdown in the Asia Pacific region.

Beam Inc’s sales for 2013 rose 4% to a “record” US$2.55 billion in 2013

The Maker’s Mark Bourbon and Courvoisier Cognac producer revealed its net sales rose 4% to a “record” US$2.55 billion in 2013.

These “strong” sales were pushed up by a “better than expected” fourth quarter, which also saw a 4% net sales increase. North America, Europe, the Middle East, and Africa were identified as markets where the company performed well in Q4.

In Q4, Beam claimed to have benefited from strong demand for its premium whiskey and Tequila brands, as well as a return to growth in India and “market outperformance” in the US and the EMEA regions, which were up 5% and 6% respectively.

However, the US group experienced a 5% decline in its Asia Pacific markets in Q4 extending to a 9% dip in the full year, with particular “softness” experienced in Australia.

The company’s diluted earnings per share (EPS), also dropped from US$2.51 in 2012, to US$2.24 in 2013, meaning its overall income was US$365.5 million in 2013, compared to US$398.2 in 2012.

Maker’s Mark increase

Brands which were seen to perform particularly well in 2013 were Maker’s Mark Bourbon (up 17%), Laphroaig Scotch whisky (up 21%), and Basil Hayden’s Bourbon (up 29%).

Those which suffered in 2013 include Courvoisier Cognac (down 2%), Teacher’s Scotch whisky (down 7%) and Skinnygirl low-calorie alcoholic drinks (down 26%).

Meanwhile, the company’s key Jim Beam Bourbon only witnessed 3% growth and its Pinnacle vodka, which has seen numerous launches over the past 12 months, stood stagnant with 0% growth.

Matt Shattock, president and chief executive officer of Beam, said: “Beam closed a strong year with a better-than-expected quarter that benefited from accelerated growth for premium brands and cost containment.

“For the full year, we delivered excellent performance in premium whiskey – led by Bourbon, Canadian, single-malt Scotch and Irish – as well as in Tequila.

“The worldwide Beam team can be very proud of these results and the shareholder value that Beam has created over the past several years, which is underscored by the transaction we’ve entered into with Suntory Holdings.”

Suntory deal

It was announced earlier this month that Beam was to be acquired by Japan’s Suntory Holdings in a US$16 billion takeover deal.

Shattock added that Beam was “looking forward” to the proposed acquisition which “remained on track” to close at the second quarter of 2014.

The deal may, however, have encountered a setback as Beam shareholders have launched legal proceedings to stall the deal, claiming it is “inadequate” and shortchanges investors.

Beam branded these allegations “baseless” and “without merit”.