Beam Suntory H1 sales rise 10%

Hakushu owner Beam Suntory saw net sales grow by double digits in the first half of 2023, with a particularly strong performance in Asia Pacific.

Beam Suntory, owner of brands such as Jim Beam Bourbon and Hornitos Tequila, reported a 10% sales jump in the first six months of this year. It followed a 10.5% increase for the firm’s 2022 full financial year.

The New York City-headquartered company reported a 16% sales rise in Asia Pacific for the first half of 2023 after the market rebounded from the pandemic.

The International region grew by 10%.

Beam Suntory said growth in the two regions balanced the ‘challenging’ North American market, which recorded a ‘flat’ performance due to a ‘slowdown’ in consumer demand.

“Our premiumisation strategy and competitive advantage in ready-to-drink continue to deliver quality results for our business, as we accelerate our work to transform our company and position ourselves as a truly global spirits leader,” said Albert Baladi, outgoing president and CEO of Beam Suntory.

“Our geographic diversity has benefitted us this year with strong performance in our Asia Pacific and international regions, which has helped offset a challenging environment in North America.

“We are optimistic about the second half as we are starting to see signs of improvement in the US market dynamics, and we remain committed to our long-term strategy to build a premium-plus portfolio that delivers value over volume.”

The company said its Japanese whisky portfolio delivered double-digit sales growth for the six-month period, driven by Suntory’s limited edition bottlings for its 100th anniversary.

Single malt Scotch also led the firm’s performance in Europe and Asia, with Bowmore up by double digits and Laphroaig growing by mid-single digits.

Beam Suntory recorded double-digit gains for its ready-to-drink (RTD) range, which includes the On The Rocks cocktail brand. The company also rolled out its -196 brand in Australia and became a minority investor in Jennifer Lopez’s House of Delola RTD cocktail line in April.

Jim Beam, Maker’s Mark Bourbon and Japanese gin Roku grew by mid- to high-single digits.

Hornitos Tequila rose by single digits, while Tres Generaciones increased by double digits, and El Tesoro soared by triple digits.

Last month, Beam Suntory announced Greg Hughes would take over from Baladi as CEO from October.

Earlier this month, Beam Suntory and Frucor Suntory revealed plans to form a AU$3 billion (US$1.96bn) spirits and no-alcohol venture in Australia and New Zealand.