Bourbon drives half-year profits for Beam Suntory Australia
Beam Suntory has reported mid-single-digit growth in the first half of 2018 in Australia, driven by strong performances from bourbon brands Jim Beam and Maker’s Mark.
In the six months ended 30 June 2018, revenue (excluding excise taxes) for the alcoholic beverages segment of Beam Suntory globally rose 3.8% to ¥349.1 billion. Operating income increased by 9.7% to ¥62.4bn.
Case volumes of Jim Beam bourbon grew at a high-single-digit rate, reflecting strong consumer demand in markets including the U.S., Japan and Eastern Europe, and sustained global momentum for the core Jim Beam expression plus double-digit growth for premium Jim Beam Black. Maker’s Mark benefited from accelerated international expansion as case volumes rose at a double-digit rate.
Brands such as Basil Hayden’s bourbon, Hornitos tequila, Courvoisier cognac, Canadian Club whisky and Sipsmith gin also delivered double-digit growth.
Geographically, year-on-year revenue grew at a mid-single-digit rate in the United States, Australia, Canada, Spain and the UK; at a high-single-digit rate in Oceania; and at a double-digit rate in the emerging markets of Eastern Europe, India, Southeast Asia and China.
Shinichiro Hizuka, senior managing executive officer and member of the board said: “At the end of the first half, overall the situation is progressing more or less as we expected, but peak demand for many of our businesses occurs in the summer and at the end of the year.
“We also anticipate an intensification of competition in both Japanese and overseas markets, as well as uncertainty with regard to the economic situation going forward.
“We will continue to make further efforts to accelerate future growth by refining product quality and quality at the point of consumption, investing in human resources, research and development and capital expenditures, as well as continuing to invest in marketing to strengthen our brands.”