Beam Suntory has reported 10.5% year-on-year growth in sales in its financial year 2022, driven by the performance of its premium brands and RTD category.
This sales growth represents a 24% increase compared to its performance in the pre pandemic year of 2019.
The sales of premium brands grew 15% in 2022, and now account for more than half of its full-bottle spirits sales in a first for the company.
The sales of Ready-to Drink (RTD) brands grew 16% in this period, driven by performance in Japan, Australia and the US.
'Value Over Volume'
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.
"We delivered these results despite significant challenges, including supply chain disruptions, record inflationary pressures, our withdrawal from Russia, and restrictive COVID-19 policies in China."
Beam Suntory witnessed sales growth accelerating up the price ladder for key Bourbon brands, with Jim Beam seeing single-digit growth, followed by Maker’s Mark at 11% and Basil Hayden at 40%.
Meanwhile, Roku, Hibiki, Yamazaki, Bowmore, Knob Creek, Tres Generaciones and Hornitos delivered double-digit sales growth.
In the RTD segment, On-The-Rocks nearly doubled in sales in the US, and -196 RTD saw exponential growth in Australia, the company noted.
Elsewhere, its core brands, Canadian Club & Dry and Jim Beam RTD, witnessed double-digit growth.
Geographical Performance
In North America, sales increased by 8% year-on-year, with the company gaining share in the premium plus segment and Canada and Mexico delivering double-digit growth.
Sales in Asia increased by 13% due to on-premise recovery, focus on premium brands, and the success of 'Highball' programmes across key markets.
International sales grew 10% in 2022 despite the impact of the company’s exit from Russia.
Spain, Oceania, India and Global Travel Retail posted 'very strong double-digit growth', Beam Suntory added.
© 2023 European Supermarket Magazine – your source for the latest drinks news. Article by Dayeeta Das. Click subscribe to sign up to ESM: European Supermarket Magazine.
