New Beam Suntory Unit Aiming For $10 Billion In Sales By 2020May 15, 2014
Following its blockbuster $16 billion acquisition of Beam Inc., which closed late last month, Suntory has set out ambitious goals both for its new Beam Suntory drinks unit and its overall business.
Company president Nobutada Saji says the aim is for Suntory Holdings to double its sales to $40 billion by 2020, with Beam Suntory contributing a quarter of the total, Reuters reported today. Meeting that target will require Beam Suntory to add more business via acquisitions, Saji added, noting that Suntory’s beer unit is also expected to reach $10 billion in sales by 2020.
Currently, Beam Suntory has combined revenues of around $4.3 billion. On a standalone basis, Beam posted net sales up 4% to $2.55 billion in 2013. Suntory expects to recover its investment in Beam within 15 years.
Beam Suntory had pro forma 2012 volumes of 54 million cases worldwide, making it the fourth-largest global spirits player, according to Impact Databank. The newly combined group will be based at Beam’s current Deerfield, Illinois headquarters and be led by former Beam CEO Matt Shattock.Subscribe to Shanken News Daily’s Email Newsletter, delivered to your inbox each morning.