US and Japanese whisky boost Beam Suntory

Beam Suntory has seen its sales soar by 58% in the first half of its financial year, bolstered by strong performances across the group’s Bourbon and Japanese whisky portfolios.

Beam Suntory has reported a 58% sales growth in H1

The company was formed following Suntory’s acquisition of Beam Inc for US$16 billion last year – something Suntory has described as a “highly profitable” move in light of its latest financial results.

In the six months to the end of June 2015, the group experienced double-digit volume growth of its Bourbon portfolio – including Maker’s Mark, Jim Beam, Knob Creek and Basil Hayden – in North America.

Beam Suntory’s Japan business saw 7% year-on-year sales growth, with whisky volumes growing 10%.

The group said its recently launched Hibiki Japanese Harmony “performed very well” and was a “driving force” for its Japanese whisky portfolio, meanwhile increased marketing efforts for Kakubin in Japan resulted in an 11% volume increase for the brand.

Also in Japan, volume sales of Jim Beam lept by 55% following the promotion of the whiskey’s Citrus Highball serve.

RTD beverages delivered 15% year-on-year volume growth, led by a 17% volume increase for -196C Strong Zero and overall volume sales of the group’s canned highballs increased 12%.

In total, Suntory’s alcoholic beverage arm, which also includes wine and beer, increased sales by 32% to 474.9 billion yen, while profits soared 50% to 31.8 billion yen.

“The factors behind the improved operating income were: the addition of highly profitable Beam Inc. resulting in a strong performance; efforts to strengthen products with high added value among our brands and products; production cost innovations and effective investment in marketing,” the group said in a statement.

In the first quarter of its financial year, Beam Suntory saw its sales shoot up 111% on a reported basis.