Beam’s Sales Rise By 10% In Record Third Quarter
November 3, 2011Beam Inc. maintained strong momentum in its fiscal third quarter ended September 30, with net sales rising 10% to a record $707.3 million. Growth over the first three quarters also was 10%, with sales hitting $2.04 billion. Net income rose by 13% to $83.4 million in the third quarter, and by 11% to $225.2 million for the first three quarters.
Beam credited its third-quarter sales performance to 11% growth for its “Power Brands”—which include Jim Beam, Teacher’s and Courvoisier—and sharply higher sales from its “Rising Star” brands, which include Skinnygirl, Knob Creek and Laphroaig.
Third-quarter operating income, which was up 4% to $142.4 million, was “tempered by factors including a 20% increase in brand investment plus start-up costs related to new products,” said Beam president and CEO Matt Shattock. “Starting here in the fourth quarter, increases in brand investment will moderate to a rate that’s more in line with sales growth,” Shattock added, noting that Beam is seeing “strong consumer response” from new products Devil’s Cut by Jim Beam, Knob Creek Single Barrel Reserve, Pucker Flavored Vodka and Courvoisier Rose.
| Beam Inc – Leading Brands in the USA (year to date through October 2011 in food and drug stores) |
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| Brand | Dollar Sales (millions) |
Percent Change |
9-Liter Case Volume (thousands) |
Percent Change |
Average Price3 (per 750ml) |
|---|---|---|---|---|---|
| Jim Beam | $63.0 | 8.2% | 401 | 8.7% | $13.10 |
| Sauza | $45.5 | 9.6% | 306 | 14.7% | $12.40 |
| Maker’s Mark | $25.4 | 23.3% | 94 | 23.3% | $22.55 |
| Canadian Club | $21.4 | 5.5% | 184 | 6.3% | $9.69 |
| DeKuyper1 | $19.4 | -1.9% | 169 | -1.3% | $9.60 |
| Kessler | $17.0 | -0.4% | 214 | -1.2% | $6.62 |
| Kamchatka | $16.7 | 4.8% | 277 | 4.6% | $5.03 |
| Skinnygirl | $13.4 | +++ | 84 | +++ | $13.27 |
| Wolfschmidt | $13.2 | 27.1% | 221 | 31.1% | $4.98 |
| Windsor Supreme | $9.7 | 1.2% | 115 | 1.9% | $7.04 |
| Courvoisier | $8.6 | 15.7% | 29 | 24.4% | $24.72 |
| Gilbey’s Vodka | $7.4 | 16.5% | 127 | 23.9% | $4.87 |
| Old Crow | $6.6 | 4.5% | 83 | 3.9% | $6.57 |
| Cruzan | $5.4 | 21.1% | 43 | 25.3% | $10.50 |
| Gilbey’s Gin | $5.4 | -6.2% | 63 | -6.6% | $7.19 |
| Lord Calvert | $5.3 | 0.6% | 69 | 6.3% | $6.43 |
| Ronrico | $4.9 | 4.6% | 58 | 7.7% | $7.10 |
| Knob Creek | $4.5 | 22.7% | 13 | 25.0% | $29.61 |
| Canada House | $2.7 | 5.3% | 34 | 5.8% | $6.55 |
| Kamora | $2.4 | 0.1% | 19 | 0.1% | $10.45 |
| Effen | $2.3 | 8.5% | 8 | 12.1% | $23.91 |
| Subtotal2 | $300.2 | 13.2% | 2,610 | 12.6% | $9.59 |
| 1Includes Schnapps and Triple Sec 2Addition of columns may not agree due to rounding 3Based on unrounded data Source: SymphonyIRI Group |
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