JAPAN – Beam Suntory, a Japanese multinational alcohol company, has posted a 10.5% year-on-year jump in net sales in the 2022 full-year results that saw Asia lead all regional sales by a 13% surge buoyed by on-premise recovery, focus on premium brands, and successful Highball programs across key markets.
In this full-year result that represents a 24% growth versus the pre-pandemic year of 2019, premium brands grew 15% and now represent more than half of the company’s Full Bottle Spirits sales for the first time.
Its Ready-to-Drink (RTD) brand sales grew by 16%, driven by performance in Japan, Australia, and the US. The company highlighted that On-The-Rocks nearly doubled in sales in the US, and -196 RTD saw explosive growth in Australia, with the core brands of Canadian Club & Dry and Jim Beam RTD delivering double-digit growth.
in its key RTD segment market, Japan, Beam Suntory is focused on expanding its leadership and expertise in RTDs to high-growth markets.
In the Bourbon brands, Jim Beam grew at a single-digit rate, Maker’s Mark grew 11%, and Basil Hayden surged 40%. Furthermore, Roku, Hibiki, Yamazaki, Bowmore, Knob Creek, Tres Generaciones, and Hornitos all delivered impressive double-digit sales gains.
Geographically, Asia had a bigger contribution of 13%, followed by the International region, which had a sales growth of 10% despite the impact of the company’s exit from Russia. Spain, Oceania, India, and Global Travel Retail were exceptional standouts with very strong double-digit growth.
Although North America region sales trailed, the region had an up 8% versus 2021 despite softening market conditions in the US, where the company gained a share in the Premium+ segment. Canada and Mexico delivered double-digit growth.
In a statement, Beam Suntory said it 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.
In 2022, the company reported record-high capital expenditures geared toward expanding capacity, quality improvements, and sustainability.
During the year, the company also made 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%.
Beam Suntory also completed the relocation of its global headquarters to New York City in September, strategically placing global leadership and brand teams in a globally influential and diverse city at the forefront of trends.
The third largest producer of distilled beverages worldwide noted to remain focused on ‘Growing for Good’ through long-term, sustainable growth.
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