Premium brands boost Beam Suntory sales
Courvoisier owner Beam Suntory is celebrating double-digit net sales growth for the first half of 2022, driven by demand for premium brands.
Beam Suntory’s global net sales rose by 13% in the first half of 2022 (H1) compared with the same period in 2021. Compared with the pre-pandemic period in 2019, this reflects a 25% leap in net sales.
The Jim Beam owner’s growth was attributed to double-digit sales gains in a number of key markets, including the US, Spain, the UK, India, Australia, and emerging Asia.
Japan reported high-single-digit sales growth.
Overall, value sales grew at twice the rate of volume sales, as the company’s focus on premiumisation continued to gain traction.
Regionally, sales were up by 13% in North America, 10% in Asia, and 20% in the company’s ‘international’ region.
Albert Baladi, president and CEO of Beam Suntory, said: “The fact that we were able to deliver these strong results in a challenging period underscores the resilience of our markets, quality of our brands, and the significant impact of our premiumisation strategy.
“We expect that the external environment will be even more challenging in the second half of the year and into 2023, and we are well positioned to deliver against both our short- and long-term ambitions through the strategies we have in place, and investments we’re making in our future.”
Looking at specific brands, Maker’s Mark and Basil Hayden Bourbons, The House of Suntory’s Roku Gin and Toki Japanese whisky, all grew by ‘strong’ double digits in H1.
Super-premium brands Yamazaki, Knob Creek, Laphroaig, Bowmore, and El Tesoro Tequila all ‘demonstrated meaningful momentum’.
Sales for On the Rocks premium cocktails doubled, while Oaksmith International Blended Whisky almost tripled.
Teacher’s Whisky and Larios Gin experienced ‘strong’ double-digit sales.
The company continues to invest in its portfolio, and recently pledged US$400 million in its Booker Noe Distillery in Boston, Kentucky, US.
Beam Suntory will complete the relocation of its global headquarters to New York City in September.
Last week, Diageo announced its full-year results. At a roundtable table meeting in London, Diageo CEO Ivan Menezes said he believed premiumisation would be able to survive an expected recession later this year.