Pinnacle Provides Boost For Beam In First QuarterMay 2, 2013
Despite lackluster results from its core brands, Beam Inc. posted solid sales growth in the first quarter of 2013, thanks largely to the positive stream from its acquisition of Pinnacle Vodka. Beam’s net sales for the quarter grew by 8% over the year-earlier period, although the addition of Pinnacle, which Beam purchased from White Rock in April 2012—just after last year’s first quarter ended—accounted for a significant portion of the increase. Indeed, Beam’s comparable net sales growth was a far more modest 3%.
While Pinnacle has continued to enjoy solid sales growth since joining the Beam portfolio, the company’s other “power brands” didn’t fare as well during the first quarter, as that group’s overall net sales fell by 2%. Flagship Jim Beam’s net sales dropped by 2%, while Sauza (-6%), Courvoisier (-29%) and Teacher’s (-20%) also struggled. Fellow power brands Maker’s Mark and Canadian Club were on the rise, though, with respective increases of 44% and 8%, and a host of Beam’s so-called “rising stars” also made marked progress, including Skinnygirl (+140%), Laphroaig (+27%), Basil Hayden’s (+16%) and Cruzan (+6%).Subscribe to Shanken News Daily’s Email Newsletter, delivered to your inbox each morning.