Bourbon boosts Beam Suntory’s H1 sales

Beam Suntory has reported mid-single-digit growth in the first half of 2018, bolstered by strong performances from Bourbon brands Jim Beam and Maker’s Mark.

Maker’s Mark increased by double digits in Beam Suntory’s H1 results

In the six months ended 30 June 2018, revenue (excluding excise taxes) for the alcoholic beverages segment rose 3.8% to ¥349.1 billion. Operating income increased by 9.7% to ¥62.4bn.

Case volumes of Jim Beam grew at a “high-single-digit” rate, attributed to “strong” consumer demand in the US, Japan and eastern Europe. The core Jim Beam expression experienced “sustained global momentum”, while premium Jim Beam Black witnessed double-digit growth.

Maker’s Mark was boosted by “accelerated international expansion”, with case volumes increasing by double digits.

Basil Hayden’s Bourbon, Hornitos Tequila, Courvoisier Cognac, Canadian Club whisky and English gin brand Sipsmith also delivered double-digit growth.

Geographically, revenue grew at a mid-single-digit rate in the US, Australia, Canada, Spain and the UK.

Oceania witnessed high-single-digit growth while emerging markets eastern Europe, India, southeast Asia and China grew by double digits.

The company’s Japan business, Suntory Spirits Limited, reported a 3% year-on-year revenue growth, with strategic brands Kakubin, Jim Beam, Torys and Maker’s Mark delivering strong growth within its whisky offering.

Japanese gin Roku, which was launched last year, made its debut in the UK, France and China this year. The company said that its sales during the first half of this year have “more than doubled” last year’s results.

In ready-to-drink (RTD) beverages, -196℃ Strong Zero and other canned highball products benefited from the trend of being served at meals.

Chu-hi brand Horoyoi also performed well, recording “significant” growth of 10% year-on-year.

The company also undertook several initiatives to “generate new demand” including the launch of Kodawari Sakaba no Lemon Sour no Moto in February this year.

Shinichiro Hizuka, senior managing executive officer and member of the board said: “At the end of the first half, overall the situation is progressing more or less as we expected, but peak demand for many of our businesses occurs in the summer and at the end of the year.

“We also anticipate an intensification of competition in both Japanese and overseas markets, as well as uncertainty with regard to the economic situation going forward.

“We will continue to make further efforts to accelerate future growth by refining product quality and quality at the point of consumption, investing in human resources, research and development and capital expenditures, as well as continuing to invest in marketing to strengthen our brands.”

Beam Suntory posted mid-single-digit growth in 2017, driven by market share gains in the US and Japan.