Beam Suntory spirits line deliver strong results despite drop in segment revenue

Beam Suntory, the spirits arm of Japanese group Suntory Holdings, said that revenue in 2016 financial year grew in the mid-single digit.

However, net sales for the alcoholic beverages segment which includes wine, beer and spirits declined 3.6% to ¥988.7bn yen ($8.69bn) year-on-year. The company noted that the spirits division performed strongly, driven by robust growth for brands such as Jim Beam, Maker’s Mark, Hornitos tequila, Japanese ready-to-drink products and premium and scotch whiskies.

The company said results in international markets reflected broad-based growth across developed and emerging markets.

In the Americas region, the United States led with Mid-single digit sales growth. The company had even better success rate in Spain, India, Russia and Southeast Asia, where it achieved double-digit sales gains.

Beam Suntory’s Japan’s spirit business saw a 3% year-on-year sales growth, with Jim Beam, Torys Classic, Chita – a single grain whisky achieving “significant” growth.

The company’s RTD beverages expanded 14% due to higher consumer demand for canned highball serves – 196ºC Strong Zero and Horoyoi.

The alcoholic beverage maker said that its beer segment contracted in the period with a 3% sales decline to 71.65 million cases. However, its wine segment saw a little bump of 1% year-on-year.

Net income for the spirits, beer and wine segment rose 12.7% to ¥88.3bn.

Looking forward, Beam Suntory said it will look to “build its premium brands, leverage strong routes to market” and work on its “organizational efficiency and effectiveness”, with a 3.2% targeted increase in sales.

Leave a Reply

Your email address will not be published. Required fields are marked *