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Beam Suntory boosted by US and Japan in Q3
Beam Suntory has reported mid-single-digit growth in the first nine months of this year, bolstered by market share gains in the US and Japan.
Beam Suntory’s third quarter saw mid-single-digit growth, boosted by the US and Japan markets
In the third quarter of 2017, Bourbon brands Jim Beam and Maker’s Mark grew case volumes at a double-digit rate globally.
Jim Beam’s performance was led by strong consumer demand for the brand’s white label expression, with “even faster growth” for Jim Beam Black and “excellent initial results” for the recently launched Jim Beam Vanilla.
Hornitos Tequila continued its strong growth, and the company’s super-premium Bourbons, Sipsmith gin, and ready-to-drink (RTD) products grew volumes at double-digit rates globally.
The US saw its sales grow mid-single-digit, while Europe grew at a high-single-digit rate, and Asia’s emerging markets were up at a double-digit rate.
The company’s Japan business – Suntory Spirits Limited – reported a 5% year-on-year sales growth.
Strategic brands Jim Beam and Torys (Classic) each delivered strong growth, with Jim Beam in Japan boosted by accelerated marketing activities behind the Beam Highball, both on-premise and in the RTD format.
Furthermore Suntory Spirits’s RTD portfolio witnessed 11% increase in case volumes. -196C Strong Zero’s continued rapid growth was attributed to food pairings with the brand.
In addition, Kokushibori Premium and canned highball products grew “significantly”.
Net sales for the Alcoholic Beverages segment, which includes beers, wines and spirits, were up by 3.9% year-on-year to 739 billion yen, and operating income was up by 8.5% to 65.2 billion yen.
Looking ahead, Suntory said in a statement: “We are anticipating net sales of 2.72 trillion yen (up 2.6% year on year), operating income of 201 billion yen (up 1.5% year on year), ordinary income of 178 billion yen (up 1.2% year on year), and net income attributable to owners of parent of 71 billion yen (down 41.6% year on year).
“Considering the impact of foreign exchange, net sales were revised to 2.72 trillion yen, and in terms of income before amortization of goodwill and others, operating income was revised to 269 billion yen (up 1.8% year on year), ordinary income to 246 billion yen (up 1.6% year on year) and net income attributable to owners of parent to 126.5 billion yen (down 27.9% year on year).”