Bourbon bolsters Beam Suntory’s H1 growthBy Annie Hayes
Beam Suntory has reported mid-single-digit growth in the first half of this year, with strong performances from Bourbon brands Jim Beam and Maker’s Mark.
In the six months ended 30 June 2017 the Bourbon brands enjoyed double-digit global growth, driven by rising consumer demand and “favourable share trends” across key markets.
Results in the Americas region were driven by mid-single-digit sales growth in the US market – led by “especially strong performances” from Jim Beam, Knob Creek, Basil Hayden’s and Tequila brand Hornitos.
Internationally, strong sales growth was spurred by “rising global demand” for Jim Beam, and an “excellent” performance for Beam’s portfolio across Europe and south east Asia.
The company’s Japan business, Suntory Spirits Limited, reported 5% year-on-year sales growth, with strategic brands strategic brands Chita and Torys Classic delivering strong growth within its whisky offering.
In ready-to-drink (RTD) beverages, case volumes were up by 13%. The sector witnessed a “substantial” rise in demand for -196°C Strong Zero, while canned highball products grew “significantly”.
Shinichiro Hizuka, senior managing director and member of the board said that sales and profit “exceeded the levels of the previous year” for the Alcoholic Beverages Segments, and are “perceived to be performing satisfactorily”.
Initiatives to “create synergies through post-merger integration with Beam Suntory” are also progressing, he added.
The firm is “actively expanding” the highball serve overseas through the promotion of Jim Beam Highball, with a current focus on “strengthening activities” in Asian countries.
Products jointly developed by the Japanese and American teams are now being launched “one after the other”, including Japanese craft gin brand Roku and bottled RTD the Sauza Cooler, which is scheduled for launch next month.