Leading premium spirits group Beam Suntory today announced 2023 full-year results, with net sales up +7% year-on-year and operating income up +13% compared to 2022.
Travel retail delivered a strong performance amid the continued recovery in global travel, helping to drive sales in the International region by +8% year-on-year.
The company said it continued to drive growth across key brands Jim Beam and Maker’s Mark, and experienced strong demand for its Japanese whisky portfolio as the House of Suntory celebrated its 100th anniversary in 2023 with special limited-edition offerings.
“We are pleased with the results we delivered last year as our portfolio of brands – rooted in quality and craftsmanship – and our geographic diversity continued to benefit our business,” said Beam Suntory President & CEO Greg Hughes.
“The House of Suntory’s 100th anniversary offerings generated incredible demand, and we saw strong performance globally across Japan, Emerging Asia and Global Travel Retail (GTR). 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.”
Brand performance
Jim Beam delivered +3% sales growth and Maker’s Mark grew +10% over 2022. Japanese Whiskies, including Yamazaki and Hakushu, saw strong double-digit sales growth. Tequila brand El Tesoro showed strong double-digit growth and Knob Creek delivered +10% growth.
The company announced in late 2023 that it had entered into a binding agreement with the Campari Group for the sale of Courvoisier Cognac. The transaction is expected to close in 2024 and furthers Beam Suntory’s focus on key growth categories of premium-plus American whiskey, tequila, Japanese whisky and RTDs.
Performance by geography
The company benefited from geographic diversity as strong performance in Japan, Emerging Asia and travel retail offset a challenging environment in North America and some key markets including India, China and Spain.
- Sales in the company’s North America region declined around -2% versus 2022 due to a slowdown in consumer demand in the US as the category “resets” post-Covid.
- In the Asia Pacific region, sales were up +14.3% as the company experienced strong growth across Japan and Emerging Asia.
- In the International region, which includes Europe, Latin America, India and GTR, sales grew +8% driven mainly by sales in GTR as global consumer travel saw a post-pandemic uptick.
Strategic priorities
Under its core values of Growing for Good and Giving Back to Society, milestones across its Proof Positive sustainability strategy in 2023 included:
- Maker’s Mark filled its first Certified Regenified barrel of Maker’s Mark whisky, becoming the first spirits distillate to achieve this certification designated by Regenified, a leading third-party regenerative agricultural verification and supply chain-solution company.
- Maison Courvoisier earned the esteemed Butterfly Mark, a certification given to luxury brands that meet rigorous standards in sustainability, social practices and governance.
- Beam Suntory received a score of 100 on the Human Rights Campaign Foundation’s 2023-2024 Corporate Equality Index, a benchmarking survey and report measuring corporate policies and practices related to LGBTQ+ workplace equality.
- Sustainable packaging initiatives from the Laphroaig and Sipsmith brands in line with the company’s long-term commitments to achieve net-zero carbon emissions across its value chain by 2040.
“In 2024, we will continue to advance our premiumisation strategy and focus on key priorities including premium-plus American whiskey, tequila, Japanese spirits and RTDs,” Hughes continued.
“I’m confident we have the right resources in the right places to put us in a position to win, and I’m encouraged by the signs we are already seeing at the start of this year as we expect consumer demand for spirits to remain strong.” ✈
