Beam Suntory sales soar in Q1 following takeover

Beam Suntory has reported triple-digit sales growth in the first quarter of this year due to the success of its Japanese whisky and Bourbon brands.

Beam Suntory has reported 111% sales growth in the first quarter of 2014/16

On a reports basis, sales were up 111% following Suntory’s US$16 billion acquisition of Beam last year, and the subsequent creation of Beam Suntory Inc.

The firm noted a “strong performance” in the US and Japan, where its Japanese whisky brands experienced 2% volume increase despite a “challenging comparison” to 2014 when demand temporarily surged ahead of a tax hike.

Maker’s Mark and Canadian Club also delivered strong gains, while sales increased at double‐digit rates for Knob Creek, Basil Hayden’s, Hibiki and Laphroaig.

Beam Suntory plans to roll out Hibiki Japanese Harmony, which recently launched in Japan, across the US and other “key” global markets later in 2015. Overall, the Hibiki brand grew volumes by 62% year-on-year in Japan.

Also in the market, imported whiskies including Jim Beam and Maker’s Mark grew volume sales by 39%, with consumers using the products as part of a High Ball mix.

The group’s RTD portfolio also grew 9% as its own brand of canned High Balls “gained market traction”.

Overall, Suntory Holdings’s alcoholic beverage arm, including wine and beer, grew 52.1% to 217.7 billion yen.

In its full year financial results for 2013/14, the Japanese firm revealed its sales had soared by 20% following its acquisition of Beam, however net profits fell 80%.