The outgoing head of Beam Suntory has confirmed to Global Drinks Intel that portfolio consolidation has a part to play in the group’s future strategy.
Late last year, the company declined to comment on reports claiming a bank had been approached to “reach out to some potential buyers independently”. Among the brands linked to a possible divestment were Cruzan Rum and Pinnacle Vodka, although no sales have materialised since.
Speaking exclusively to Global Drinks Intel yesterday, CEO Albert Baladi admitted there are “obviously questions about how to continue tightening our portfolio”. As a result of an ongoing strategy to focus on its higher-end brands, Beam Suntory has seen the proportion of its sales from premium-positioned offerings rise from “under” 40% in 2018 to 52% at the end of last year.
“Some brands in our portfolio would probably be better off in the hands of other companies,” Baladi told Global Drinks Intel. “That’s the piece we’re looking at, to enable the broader vision of becoming the world’s most admired premium spirits company.”
Moving in the opposite direction in recent months have been Mezcal Amarás, with whom Beam Suntory agreed a US distribution arrangement in June, and the Jennifer Lopez-fronted Delola premix brand through a minority stake purchase in April.
Consolidation is afoot elsewhere among spirits multinationals after Brown-Forman said last month that vodka brand Finlandia will transition to Coca-Cola HBC in the coming weeks.
Baladi spoke with editor Olly Wehring yesterday in the same week that the company announced his departure later this year. Chief growth & brands officer Greg Hughes will replace him as CEO on 1 October.
