- Six-month sales – to end of June – for Beam Suntory rise 10%
- North America “flat” as US consumer demand for spirits slows
- Suntory alcohol business climbs 15.3% in H1 sales to JPY486.62bn [US$3.34bn]
Beam Suntory parent Suntory has flagged the “slowdown” of consumer demand for spirits in the US, which held back the unit’s rate of sales growth in the first half of 2023.
The Jim Beam owner, part of Suntory’s wider beverage alcohol business, saw its sales in the six months to the end of June climb by 10% on the corresponding period last year. Suntory, which is privately owned and not obliged to report its performance, said its spirits operations as a whole delivered a “low double-digit” sales lift in H1.
The post-Covid return to normality in Asia Pacific was offset by the softening of US consumers, Suntory said, with the country also witnessing a “category reset” following the ups and downs related to the pandemic. In a separate statement, Beam Suntory admitted that North America came in flat, noting also that APAC jumped in sales terms by 16%.
The division also flagged high single-digit sales showings from Jim Beam, Maker’s Mark and Roku gin, with Tequila brands Hornitos, Tres Generaciones and El Tesoro up by single, double and triple digits, respectively. Beam Suntory’s RTD activities, meanwhile, boasted a double-digit year-on-year lift in sales.
“We are optimistic about the second half as we are starting to see signs of improvement in the US market dynamics,” said Beam Suntory CEO Albert Baladi. “We remain committed to our long-term strategy to build a premium-plus portfolio that delivers value over volume.”
In Suntory’s alcoholic beverages segment, spirits in Japan climbed 16% thanks in part to the group’s promotion of several RTD brands as being “suitable for drinking with food”. The beer business, meanwhile, was up 11% as Suntory highlighted the success in Japan of Beer Ball, a recently-launched beer “made for mixing with carbonated water.
Beam Suntory is preparing for a change of leadership, with current CEO Albert Baladi set to make way for chief growth & brands officer Greg Hughes in October. Speaking to Global Drinks Intel last month, Baladi said the unit would continue to review its brand portfolio as part of its premiumisation strategy.
