US. Jim Beam owner Fortune Brands Inc reported record results for the first quarter of 2006 fuelled by strong organic sales gains and the growth of newly acquired spirits and wine brands.
The wine and spirits division, Beam Global Spirits & Wine, achieved double-digit sales growth for its Jim Beam and Maker’s Mark brands for the three months ended 31 March 2006.
The company’s results were boosted by last year’s £2.8 billion acquisition of the Sauza, Maker’s Mark, Courvoisier, Canadian Club and Larios spirits brands and a range of super-premium California wines from Pernod Ricard.
First-quarter net sales of spirits and wine reached US$611.9 million, up +124.4%, while operating income surged by +87.2% to US$128.2 million.
Commenting on the group’s record results, Chairman and Chief Executive Officer Norm Wesley said: “Fortune Brands fired on all cylinders in the first quarter with excellent momentum across our consumer categories.
“Our strong start to 2006 exceeded our first-quarter earnings targets as each of our businesses performed at or above our expectations.”
He added: “The integration of our new spirits and wine brands is proceeding well with no surprises, and we drove solid volume growth for our enhanced portfolio of premium brands.”
Looking forward, Wesley said the “increasing benefits” of its spirits and wine acquisition would continue to enhance Fortune Brands’ performance in 2006. However, the company’s 2006 target would be impacted by approximately US$125 million in spirits and wine acquisition-related payments that would not be repeated.
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