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Suntory sales up 3.5% despite ‘challenging environment’ in US
Japanese drinks group Suntory Holdings has reported a 3.5% sales increase for alcoholic beverages in the first half of 2024.
In the six months ending 30 June 2024, the owner of Suntory Global Spirits revealed that sales in its Alcoholic Beverages Segment rose by 3.5%, totalling JPY¥503.9bn (US$3.4bn) excluding liquor tax.
The alcoholic beverages segment comprises spirits, beer, wine and other alcoholic beverages. Suntory Global Spirits falls under the company’s spirits banner with brands such as Maker’s Mark, Jim Beam, Roku, Hornitos and Chita.
In an overview presented by Toru Miyanaga – managing executive officer division COO, corporate planning division, Suntory Holdings – the company singled out Germany and India as strong-performing countries for its spirits in markets outside of Japan, as well as global travel retail.
The US, however, was described as a ‘challenging environment’ where downward market trends and changes in retail inventory strategies were blamed.
Without giving specific figures, Suntory Holdings listed Yamazaki and Hibiki (Japanese whiskies), Jim Beam (Bourbon), Teacher’s (Scotch), Oaksmith (Indian whisky) and On the Rocks (ready-to-drink) as brands that showed positive growth.
The ready-to-drink (RTD) category in particular was noted for continuing its upward trajectory, as the company expanded distribution of its -196 RTDs to the US, Europe and Southeast Asia.
Within its home nation of Japan, Suntory marked its canned Highballs, Jim Beam and Ao blended whisky for good performances. It also sought to create a ‘new Western liquor culture’ for gin with renewed marketing activities for its Sui brand. Sui saw a ‘significant’ year-on-year growth of 19%.
Furthermore, there were new product launches in Japan, including a sugar-free series for -196 and Matsurika Jasmine Chawari JJ Cans.
The drinks conglomerate acquired Beam Inc 10 years ago.
In May, the company changed its name from Beam Suntory to position itself ‘for the next era of growth and leadership’. It saw its net sales grow by 7% in 2023.
The president of Suntory Spirits Japan and the House of Suntory, Masaki ‘Mory’ Morimoto, has earmarked white spirits such as Japanese vodka and gin for future growth.