- Beam Suntory full-year sales rise 7%, slight slowing on H1’s +10%
- Jim Beam up 3%, Maker’s Mark at +10% with El Tesoro tequila in “strong double-digit” territory
- North America down 2% as “category resets post-Covid” in US
- Suntory’s alcohol business up 11.8% to JPY1,045.7bn (US$6.97bn)
In full-year results announced today, Beam Suntory professed to be “pleased” with its 7% top-line lift versus 2022. More impressive was the near-12% increase in sales from Suntory’s overall alcohol footprint, which includes brewing operations and wine alongside US-headquartered Beam Suntory.
The Jim Beam owner, which is not obliged to report detailed results given its privately-owned status, said that its flagship bourbon brand grew year-on-year sales by 3%. Sibling American whiskies Maker’s Mark and Knob Creek were both up 10%, while tequila brand El Tesoro, which sits alongside Hornitos and Sauza, enjoyed a “standout year” with an unspecified “strong double-digit” growth rate.
Over in Japan, where Suntory oversees a separate spirits business to Beam Suntory as well as a beer portfolio, Suntory noted an expansion of the domestic beer market thanks to the country’s liquor tax reform, which was implemented in October. Subsequently, beer volumes climbed 8% for the conglomerate, which credited a repositioning of The Premium Malt’s alongside April’s release of Suntory Draft Beer.
Back at Beam Suntory, one of the focus areas going forward will be its efforts in RTD: Last year’s 12% sales increase from the premix portfolio will be followed by an expansion to the US, Europe and South East Asia for Japan’s -196 vodka-based RTD over the coming weeks. Starting this month, the brand, which is produced with fruit frozen to -196 degrees celsius, will roll out to 21 US states before hitting Germany and the UK later and reaching South East Asia by the end of the year.
“We are pleased with the results we delivered last year as our portfolio of brands … and our geographic diversity continued to benefit our business,” said Beam Suntory CEO Greg Hughes, in reference to the 2023 results. “While we faced some challenges as an industry, particularly in the US, as we look to 2024, we remain focused on our premiumisation strategy and further building our credentials in the prestige and ultra-premium space.”
In separate comments made around today’s figures, Suntory CEO Takeshi Niinami recognised this year as the tenth anniversary of the group’s acquisition of Beam Suntory. “The first stage of the integration, which I had positioned as the biggest management challenge since I became [CEO], is now complete,” Niinami said. “The amount paid at the time of acquisition was approximately JPY1.6trn, and we succeeded in more than tripling its corporate value over the ten years.
“Our next goal is to become number one in the RTD category by 2030, a category that is on a growth trend worldwide.”
Late last year, Beam Suntory agreed to divest the Courvoisier cognac brand to Campari Group for just over US$1.3bn.
