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Beam Suntory boosted by global markets in Q3
Beam Suntory has reported mid-single-digit growth in the first nine months of this year, bolstered by solid gains in international markets.
Beam Suntory experienced mid-single-digit growth in the first nine months of this year
However, the unit’s parent company, Suntory Holdings, saw its alcoholic beverage segment, which includes wine and beer in addition to Beam Suntory’s spirits portfolio, decline in the nine months to 30 September 2016.
In the timeframe, the segment’s total sales declined to US$6.9 billion, compared to US$7.1bn in 2015.
While Suntory’s beer and wine businesses marginally declined in the year-to-date, its spirits-focussed Beam Suntory division increased at a mid-single-digit rate, led by brands including Jim Beam, Maker’s Mark, Basil Hayden’s, Laphroaig, Courvoisier, Hornitos and Effen.
The US led the group’s “strong performance” in the Americas as demand continued for Jim Beam and flavoured brand extension Jim Beam Apple.
Chicago headquartered Beam Suntory said its “strong year-to-date” sales in international markets outside of the US “reflected region-wide share gains, premiumisation and robust growth in developed and emerging markets,” particularly Australia, Spain, Russia and India.
Beam Suntory’s Japan business – Suntory Spirits Limited – grew year-on-year sales by 3%, fuelled by the rapid 44% growth of Jim Beam Bourbon, itself bolstered by the soaring popularity of the Jim Beam Highball serve.
Furthermore, Suntory Spirits’s RTD portfolio witnessed 14% volume growth. Overall, Suntory Holdings’s year-to-date sales marginally declined to US$19bn.
“During the first nine months of FY2016, overall the global economy made a gradual recovery, despite signs of weakness in some areas,” the group said in its financial statement.
“Gradual recovery continued in the Japanese economy, but some weakness was seen, such as in personal consumption and in corporate profits.
“Amid these circumstances, the Suntory Group has actively expanded business in each of three segments: ‘Non-Alcoholic Beverages and Food’, ‘Alcoholic Beverages’, and ‘Other Businesses’ both domestically and abroad.”