RTDs boost Suntory’s spirits sales in 2013

Suntory Holdings has seen its spirits sales rise in 2013 thanks to the rapid growth of the company’s RTD category.

The Japanese drinks group, which recently announced it would be acquiring US company Beam Inc in a US$16billion takeover deal, reported overall profits of US£1.96bn – a 434% rise from US$360million in 2012.

Net sales for the company rose to just over US$2bn from US$1.8bn in 2012  – a 10% increase.

For the group’s spirits segment, which includes Hibiki and Hakushu whisky brands, there was a 3% increase in sales, which Suntory attributes to its “strengthening major brands and creating new categories of beverages”.

In particular, the company’s RTD segment saw substantial growth in 2013, posting sales of 47 million cases – a 10% increase against a predicted 5% predicted increase for the category overall.

Suntory’s Funwari Kyogetsu and Cocktail Tours RTD brands sold 880,000 cases, exceeding the 720,000 case target.

As for whisky sales by volume, Suntory reported that its major brands performed “favourably”.

Its flagship Kakubin blended whisky brand saw its sales volume grow 3% year-on-year, surpassing three million cases for the first time in 20 years.

Meanwhile, its premium whisky brands, including Yamazaki, Hakushu, and Hibiki 12 Year Old grew sales by 16%, with Suntory claiming to have increased its marketing activities for the brands in Europe and the Americas.

The group’s Scotch subsidiary Morrison Bowmore Distillers was said to have “expanded its sales” of Bowmore and Auchentoshan single malts.

Looking at the year ahead, Suntory announced plans to increase marketing efforts for its soon-to-be acquired Jim Beam and Maker’s Mark Bourbon brands, granted the Beam takeover goes through unhindered in Q2.

The group further predicted a 2.3% rise in beer and spirits sales for its full year 2014 results.