Beam Suntory FY sales rise 10.5%
Maker’s Mark owner Beam Suntory saw net sales increase by double digits in 2022, led by the firm’s premium brands.
New York City-headquartered Beam Suntory reported a net sales rise of 10.5% last year, representing 24% growth compared to the pre-pandemic year of 2019.
In the first half of 2022, Beam Suntory’s sales rose by 13%.
Premium brands rose by 15% in 2022, and now represent more than half of the company’s ‘full bottle spirits’ sales for the first time.
Ready-to-drink (RTD) sales increased by 16%, led by Japan, Australia and the US.
“The quality of these results is clear and reflects our strategy to premiumise our spirits portfolio, build RTD leadership, and focus on value over volume,” said Albert Baladi, president and CEO of Beam Suntory.
“We delivered these results despite significant challenges including supply chain disruptions, record inflationary pressures, our withdrawal from Russia, and restrictive Covid policies in China.”
Beam Suntory noted that sales growth ‘accelerated’ up the price ladder for its key Bourbon brands, with Jim Beam growing by single digits, Maker’s Mark rising by 11% and Basil Hayden’s soaring by 40%.
Furthermore, Roku gin, Japanese whiskies Hibiki and Yamazaki, Bowmore Scotch whisky, Knob Creek Bourbon, and Tequila brands Tres Generaciones and Hornitos, all recorded double-digit gains.
The firm’s RTD brand On the Rocks nearly doubled its sales in the US, and -196 RTD saw ‘explosive growth’ in Australia.
The Canadian Club & Dry and Jim Beam RTDs delivered double-digit growth.
Beam Suntory noted that the company delivered ‘strong performances’ across its three regions ‘against a backdrop of global headwinds moderating market conditions in the US and Western Europe, a Covid resurgence in Asia, and challenging inflationary pressures globally’.
Sales in North America were up by 8%, ‘despite softening market conditions’ in the US, where the company gained share in the premium-plus segment.
Canada and Mexico reported double-digit gains.
Sales in Asia rose by 13%, maintained by recovery in the on-trade, focus on premium brands, and ‘successful’ Highball programmes across key markets.
International sales grew by 10% despite the company’s exit from Russia.
Spain, Oceania, India and global travel retail experienced ‘very strong’ double-digit growth.
Suntory recently revealed a 10 billion JPY (US$77 million) investment into its Yamazaki and Hakushu distilleries to celebrate the company’s 100th whisky-making anniversary.
Last year, the firm announced a US$400m investment in its Booker Noe Distillery in Kentucky to increase production capacity for Jim Beam.
The company also completed the relocation of its global headquarters from Chicago, Illinois, to New York City in September 2022.