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.

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.