Beam Suntory H1 sales grow 12%
Maker’s Mark owner Beam Suntory reported double-digit growth in the first half of 2021 as the group enjoyed gains in markets including the US, Canada and China.
Net sales for the Jim Beam producer rose by 12% in the first half of the year, marking an 8% increase compared with the first half of 2019.
Beam Suntory experienced double-digit growth in the US, Canada, EMEA (Europe, Middle East and Africa), Oceania, India, China, emerging Asia and global travel retail.
Albert Baladi, Beam Suntory president and CEO, said: “I’m very proud of the work our teams have done to secure our supply chain, protect our people, meet consumer needs, and anticipate long-term trends throughout the pandemic, and I believe our results reflect that.
“With a focus on premiumising our business, accelerating key growth platforms, becoming a truly purpose-driven company and supporting our people, we have been able to meet consumers where they are, and do good for all of our stakeholders.”
The following brands all reported double-digit growth during the first six months of the year: Maker’s Mark and Basil Hayden Bourbons, Courvoisier Cognac, Hibiki Japanese whisky, Laphroaig and Bowmore Scotch whiskies, Roku gin and Hornitos Tequila.
The company’s On the Rocks premium cocktails saw sales grow ‘four-fold’.
Regionally, sales in North America rose by 12% as a result of ‘faster-than-anticipated’ on-trade recovery and double-digit sales growth across the US.
International region sales grew by 32%, ‘reflecting robust’ double-digit growth in markets such as Germany, the UK, Spain, Russia, Australia, India and global travel retail.
Asia delivered 6% growth, with double-digit increases in China and emerging Asia, partly offset by ‘relatively level sales’ in Japan. Beam Suntory said Japan represents about one-third of the company’s revenue in Asia, and was impacted by Covid-19 restrictions on the on-trade.
Beam Suntory has also invested more than US$1 billion in its sustainable strategy, with an aim to reduce greenhouse gas emissions by 50%, reduce water per unit of production by 50%, and use 100% recyclable packaging by 2040. Plus, the company will plant more trees than it uses in barrel production by 2030.
Furthermore, Beam Suntory has pledged to contribute one million cumulative volunteer hours, foster greater diversity, equity and inclusion, build stronger communities, promote social justice, and more.
Baladi added: “The strategic investments we’re making and the powerful commitment of our people are helping us build broad-based momentum, and I’m confident we will remain at the forefront of the recovery in our markets.
“Even with the challenges and uncertainty the pandemic still presents, we will continue to be guided by our proven strategy and values-based approach as we pursue our ambitious growth goals and sustainability targets.”