Beam Suntory Posts First-Half Sales Up 10%, Sees U.S. Market Improving
August 16, 2023Beam Suntory saw 10% growth in the first half of the year, as the company said strong growth in its Asia Pacific and International segments “helped balance out a challenging market in North America, which was flat versus the first half last year as the business contends with a slowdown in consumer demand in the U.S. and the category resets post-Covid.” Still, the group added that it’s starting to see signs of improvement in the U.S.
Among Beam Suntory’s key brands, Jim Beam, Maker’s Mark, and Roku gin rose by high single-digits in the first half, while its Japanese whisky range—including brands like Yamazaki, Hakushu, Hibiki, and Toki—advanced by double digits, driven by limited editions and a push around the House of Suntory’s 100th Anniversary. In Tequila, the company saw single-digit sales growth from Hornitos and double- and triple-digit growth for Tres Generaciones and El Tesoro, respectively. In single malt, Laphroaig was up by mid single digits.
Beam Suntory noted that its RTD portfolio continues to drive gains, increasing at double-digit rates. The company’s moves in the segment include taking a minority stake in The House of Delola, created by Jennifer Lopez, along with Ken Austin and Jenna Fagnan, in which Beam Suntory is also the global distribution partner. The group also continues to expands its On The Rocks range of cocktails.
Other recent portfolio moves have included new brands and limited editions from the James B. Beam Distilling Co., including Clermont Steep and the Hardin’s Creek Kentucky Series; a strategic partnership with Mezcal Amaras, furthering Beam Suntory’s participation in agave-based spirits; and new global campaigns and positioning for Jim Beam and Maker’s Mark.
“Our premiumization strategy and competitive advantage in ready-to-drink continue to deliver quality results for our business,” said Beam Suntory president and CEO Albert Baladi. “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 U.S. market dynamics, and we remain committed to our long-term strategy to build a premium-plus portfolio that delivers value over volume.”
Last month, SND exclusively reported that Baladi will step down in October after a transformational tenure as CEO of the company, which has $5.5 billion in annual sales. He will be succeeded by current SVP and chief growth and brands officer Greg Hughes, a Beam Suntory veteran, who is charged with continuing to execute its “ long-term premiumization strategy and transformation,” with Baladi staying on as a senior advisor through 2024.—Daniel Marsteller
| Beam Suntory – Key Brands in the U.S. | ||||
| Brand | Type | Total 2022 U.S. Depletions2 |
Control States Volume Growth 2023 YTD3 |
|
|---|---|---|---|---|
| Jim Beam1 | Bourbon | 6,085 | 5.5% | |
| Maker’s Mark | Bourbon | 2,350 | 0.6% | |
| Hornitos | Tequila | 1,690 | 10.0% | |
| Cruzan | Rum | 725 | 5.4% | |
| On The Rocks | RTD | 672 | 62.4% | |
| Knob Creek | Bourbon | 539 | -0.8% | |
| Basil Hayden | Bourbon | 530 | 6.4% | |
| Toki | Japanese Whisky | 125 | -2.1% | |
| Tres Generaciones | Tequila | 91 | 3.2% | |
| Roku | Gin | 60 | 9.6% | |
| Haku | Vodka | 39 | 11.4% | |
| Sipsmith | Gin | 23 | 17.4% | |
| Total Key Brands | 12,929 | 5.5% | ||
| 1 includes flavors 2 thousands of 9-liter cases 3 year-to-date through June Source: NABCA and IMPACT DATABANK © 2023 |
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Tagged : Beam Suntory, Hibiki, Jim Beam, Maker's Mark, On the Rocks, Roku, Toki, Yamazaki
