INTERNATIONAL. Premium spirits powerhouse Beam Suntory has reported a +10.5% rise in net sales for 2022 year-on-year, as it achieved +24% growth measured against pre-COVID pandemic 2019. Global Travel Retail was highlighted by the company as an “exceptional standout”, with the channel producing “very strong” double-digit growth.
Premium brands grew by +15% in 2022, and for the first time ever now represent more than half of the company’s full bottle spirits sales. Ready-to- drink (RTD) brand sales grew +16% driven by performance in Japan, Australia and the US.
Commenting on the strong result, Beam Suntory President & CEO Albert Baladi said: “The quality of these results is clear and reflects our strategy to premiumise our spirits portfolio, build RTD leadership, and focus on value over volume.
“We delivered these results despite significant challenges including supply chain disruptions, record inflationary pressures, our withdrawal from Russia, and restrictive COVID policies in China.”
Performance by brand
Key Beam Suntory bourbon brands achieved strong year-on-year growth, with Jim Beam growing at a single digit rate, Maker’s Mark up by +11% and Basil Hayden surging +40%. Other brands including Roku, Hibiki, Yamazaki, Bowmore, Knob Creek, Tres Generaciones and Hornitos all delivered double-digit sales gains.
Already an established leader in the RTD segment in Japan, Beam Suntory said it is focused on expanding its leadership and expertise in RTDs to high growth markets. On-The-Rocks nearly doubled in sales in the US, and -196 RTD saw “explosive” growth in Australia, and the core brands of Canadian Club & Dry and Jim Beam RTD delivered double digit growth.
Performance by geography
Beam Suntory delivered strong performance across its three regions against a backdrop of global headwinds moderating market conditions in the US and Western Europe, a COVID resurgence in Asia, and challenging inflationary pressures globally.
North America sales were up +8% versus 2021 despite softening market conditions in the US, where the company gained share in the Premium+ segment. Canada and Mexico delivered double-digit growth.
Asia sales were up +13% buoyed by on-premise recovery, focus on premium brands, and successful Highball programmes across key markets.
International sales grew +10% despite the impact of the company’s exit from Russia. Spain, Oceania, India and Global Travel Retail produced notable performances with very strong double-digit growth.
Sustainable growth
Beam Suntory noted that it remains focused on ‘Growing for Good’ through long term, sustainable growth. In 2022, the company reported record high capital expenditure geared toward expanding capacity, quality improvements and sustainability.
During the year, the company announced several investments, including US$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 global leadership and brand teams in what it describes as “a globally influential and diverse city at the forefront of trends”.
The company also published its inaugural sustainability report in 2022, providing an update on its ‘Proof Positive’ enterprise-wide sustainability strategy. Proof Positive represents more than US$1 billion in investments to positively impact the environment and make sustainable impacts on consumers and communities.
