Strong performances from brands such as Jim Beam and Maker’s Mark are behind the impressive growth in this year’s second quarter for Beam Suntory, the group has reported.
The first half of the year saw double-digit global growth for the company, driven by an increase in consumer demand and what the group labeled as “favorable share trends” spread across vital markets.
According to the Spirits Business: “Results in the Americas region were driven by mid-single-digit sales growth in the US market – led by “especially strong performances” from Jim Beam, Knob Creek, Basil Hayden’s and Tequila brand Hornitos.”
“Internationally, strong sales growth was spurred by “rising global demand” for Jim Beam, and an “excellent” performance for Beam’s portfolio across Europe and south east Asia.”
In Japan, the Suntory Spirits Limited branch claimed a 5 percent year-on-year sales growth. This was due in part to the increasing popularity of canned high-ball beverages.
“In terms of sales, we are actively expanding overseas with the “highball” style of drinking that originated in Japan, through the promotion of Jim Beam Highball,” said Suntory Holdings Senior managing director, Shinichiro Hizuka.
Create synergies through post-merger integration with Beam Suntory.
“Currently, we are strengthening activities in various Asian countries, and the number of restaurants and bars handling this product increasing.”
Hizuka also commented that sales and profit “exceeded the levels of the previous year” for the Alcoholic Beverages Segments and that things were “perceived to be performing satisfactorily”.
In addition, Hizuka added that ideas that “create synergies through post-merger integration with Beam Suntory” are developing too.
Beam Suntory said that: “Beam Suntory has an excellent scale in our two largest markets, the United States and Japan. We are the second largest spirits company in the US, where we craft our industry leading Bourbons, led by Jim Beam and Maker’s Mark.”
“In the US, we’re sharply focused on cities as sources of industry growth, and driving more and more sales from premium products. We are the market leader in Japan, where we produce the Japanese Whisky brands that are gaining a very strong reputation from consumers around the world for their quality and craftsmanship.”
“In Japan, we’re continuing to create new consumption occasions for Whisky, fueling sales of Japanese Whisky, and firmly establishing Bourbon as a growth platform.”
“Key emerging markets drive significant value for our company, including India where we are leveraging Teacher’s leading position in one of the world’s biggest Scotch markets to drive growth; Russia, where we continue to grow our market share led by Courvoisier, Jim Beam, and our premium Whisky portfolio; and Southeast Asia and China, where the highball drinking style creates long-term growth opportunities.”
Last year, the brand reported full-year comparable sales, which increased at a mid-single-digit rate, driven by strong growth for brands including Jim Beam, Maker’s Mark, Hornitos Tequila and Japanese ready-to-drink products, plus the company’s super-premium Bourbon and Scotch Whiskies.
The brand said: “Mid-single-digit sales growth in the United States drove strong results in the Americas region. In the International region, results reflected broad-based growth across developed and emerging markets, including double-digit sales gains in Spain, India, Russia and Southeast Asia.”
“The company’s Japan business (Suntory Spirits Limited) saw 3 percent year-on-year growth in sales. Among Whiskeys, strategic brands Jim Beam, Torys (Classic) and Chita delivered significant growth.”