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Beam Suntory reveals rise in 2022 sales alongside RTD growth
Beam Suntory’s 2022 figures have shown a “strong” sales rise owing to success of its spirits and growing ready-to-drink (RTD) portfolio.
The drinks giant revealed net sales rise 10.5% year-on-year, representing 24% growth versus the pre-pandemic year of 2019.
According to the results, premium brands grew 15% in 2022, and now represent more than half of the company’s “full bottle spirits sales for the first time ever”. Additionally, RTD brand sales grew 16% driven by performance in Japan, Australia and the US.
Speaking about the results, Albert Baladi, president and CEO of Beam Suntory, 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.”
Baladi added: “We delivered these results despite significant challenges including supply chain disruptions, record inflationary pressures, our withdrawal from Russia, and restrictive Covid policies in China.”
In terms of brand performance, sales growth accelerated up the price ladder for key Bourbon brands, as 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.
As an established leader in the RTD segment in Japan, Beam Suntory revealed how it is focused on expanding its leadership and expertise in RTDs to high growth markets.
For instance, it’s On-The-Rocks brand nearly doubled in sales in the US, and it’s -196 RTD saw explosive growth in Australia, with the core brands of Canadian Club and Dry and its Jim Beam RTD delivering double digit growth.
Looking at the industry landscape geographically, the report shows how Beam Suntory delivered a strong performance across its three regions against a backdrop of global headwinds moderating market conditions in the US and Western Europe. This included a Covid resurgence in Asia, and challenging inflationary pressures globally.
Looking at North America, sales were up 8% versus 2021 despite softening market conditions in the US, where the company stated that it “gained share in the premium+ segment”. In addition, it revealed how Canada and Mexico delivered double-digit growth. Looking eastwards, Asia sales were up 13% buoyed by on-premise recovery, focus on premium brands, and successful Highball programmes across key markets.
Also showing positivity, international sales grew 10% despite the impact of the company’s exit from Russia. For example, Spain, Oceania, India and Global Travel Retail (GTR) were “exceptional” standouts with very strong double-digit growth.
In terms of the company’s future plans and projections, Beam Suntory has said that it remains focused on its long term, sustainable growth.
In 2022, the company reported record high capital expenditures geared toward expanding capacity, quality improvements, and sustainability. Added to this, during the year, Beam Suntory 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%.