FOR THE first time ever, ‘premium-plus’ spirits this year accounted for more than half of Beam Suntory’s global Full Bottle Spirits sales – a focus on ‘value over volume’ that has paid off, with the multinational’s 2022 results showing sales growth of 10.5% year-on-year, within which its premium brands grew by 15%.
Beam Suntory’s growth is even more impressive weighed against the pre-pandemic year of 2019, against which its total sales are now up by almost a quarter, with 24% added.
“The quality of these results is clear and reflects our strategy to premiumize our spirits portfolio, build RTD leadership, and focus on value over volume,” said Beam Suntory President and CEO Albert Baladi.
“We delivered these results despite significant challenges including supply chain disruptions, record inflationary pressures, our withdrawal from Russia, and restrictive COVID policies in China.”
This premium-skewed sales growth was particularly apparent for the company’s key Bourbon brands, as Jim Beam grew at a single digit rate, Maker’s Mark grew 11% and its small batch Basil Hayden surged by 40%.
Overall, North America sales were up 8% versus 2021, as softening market conditions in the US were bolstered by double-digit sales growth in Canada and Mexico.
Away from Full Bottle sales, Beam Suntory also prospered globally in the RTD segment – its ‘On-The-Rocks’ ready-mix cocktail range nearly doubled in sales in the US, while the transplant of Japanese shochu&vodka brand ‘Minus 196’ to Australia saw ‘explosive’ growth in Australia.
During the year, the company announced several investments, including $400 million in its Booker Noe distillery to increase global production capacity for Jim Beam, while at the same time reducing carbon emissions by 50%. The company also completed the relocation of its global headquarters to New York City in September, strategically placing its global leadership and brand teams in a ‘influential and diverse city at the forefront of trends’.
PERNOD RICARD has also reported ‘very strong’ sales growth of 12% in the first half of the current fiscal year.
The company’s sales for H1 FY23 reached €7,116m, based on 7% growth in the Americas, and 18% growth in Asia and the rest of the world.By comparison, European business ticked along at 6% growth.
The latest results noted that all spirits segments are growing double-digit, with Pernod Ricard’s international brands up 13%, driven by its Scotch portfolio, Jameson and Absolut; local brands up 13%, driven by growth of Seagram’s Indian whiskies and Seagram’s Gin; and specialty brands up 14%, thanks to the strong development of Lillet, Italicus, Malfy, Redbreast, Aberlour and Altos.
Taken altogether, these results delivered a profit of €1,792million, up 29% on the year. Chairman and Chief Executive Officer Alexandre Ricard said: “Our first half performance was very strong, marked by broad-based and diversified growth across all regions and categories. In addition, particularly strong pricing dynamic illustrates the attractiveness of our portfolio of premium brands and enabled us to sustain margins in an inflationary context.
“I expect this dynamic growth to continue through FY23 albeit in a normalizing environment, demonstrating the strength of our strategy and the agility, dedication and exceptional engagement of our teams around the world.”
