Beam Suntory has introduced more premium Japanese whiskies to the TR market; the oldest Japanese whisky, Yamazaki 55, retailed in the channel last year at a super-premium price point
Challenging times bring opportunity and the chance of rebirth. For Beam Suntory, the pandemic was a time to look at the corporate structure of the Americas and make some changes, bringing Mexico into the fold, as one example. It has also been a time to look at one of the company’s important brands and rethink how they are being presented.
Earlier this year, Ella Blake began her role as Global Key Account Director, Beam Suntory GTR, Americas, looking after the newly defined region. “LATAM is definitely an opportunity for us,” she says. “We did a slight structure tweak, bringing Mexico over as part of the region, which it was not previously. It’s a growing area of opportunity for us.”
Historically, Mexico wasn’t part of Beam Suntory’s international region. “We have now brought it from a domestic to international perspective,” says Blake. “Travel retail sits within that as well, so we have a good foundation.” Blake says sales are strong in Mexico, with some brands doing “fantastically well.”
Beyond Mexico
Blake is looking forward to working in Brazil, linking travel retail to a strong domestic market. “There’s a natural synergy there, you get maximum ROI, maximum consumer visibility,” she says.
In North America, the company’s top performers include Beam’s full American whisky portfolio, Courvoisier Cognac and Japanese Whisky, with Jim Beam as the “bread and butter.” Blake says Cruzan rum is also seeing increased movement, especially in the Caribbean.
The big rebranding
Courvoisier is a big part of the story for post-pandemic Beam Suntory Americas. The brand is doing “very well,” Blake says, but good sales notwithstanding, it is going through a complete rebrand.
“Our category strategy for Courvoisier is around the consumption occasion. It’s about why and when our consumers are enjoying it. We ask, why are people going to be having that brand in the moment? What are they doing?” says Blake. “Historically, Courvoisier was a dark, masculine, nighttime-driven occasion.”
Taking Courvoisier away from this moody place, Beam Suntory is focusing on presenting it as more seasonal, lighter, brighter, fruity. “As part of that we’ve had to change the branding,” says Blake. “We’ve realized there’s a real disconnect between the masculine nature and dark branding that we had previously, and the new occasion that we have going forward.” The new campaign is called “Joie de Vivre.” It is about the joy of life, socializing, and it comes with a lot of light, airy, cheerful branding.
Aspirational brand
Cognac works well in North America and Europe, says Blake, adding that the company is exploring possibilities for the sub-category in South America as an aspirational brand with strong heritage. “We have the Napoleon Seal. Courvoisier is the most awarded cognac there is. We are keeping that as a focus.”
In line with the aspirational aspect of Courvoisier, Beam Suntory will continue to bring out more higher value expressions. “Some of the more premium brands such as XO Royal, L’Essence and Initial Extra are, to a certain extent, marketed more to an Asian market because there is more of an appetite for those higher end slightly more collectible products,” says Blake. “One of our shining stars we bought out this year was an extremely limited edition, the Mitzunara Japanese Oak Cognac. It is aged, with final aging in Senura casks. These were very limited. Travel retail released 30 in total, including some in JFK, but those sold out.”
Made iconic my the founder's wife, Maker's Mark is performing well among Beam Suntory's portfolio
Trading up
Premiumization has been the trend in travel retail for some time, but it is also now a trend in general society, and not only with the traditional older generations but also younger people. “What we have seen particularly is that certain generation’s drinking habits are changing,” says Blake. “People are drinking less but they’re drinking better. So what you’re seeing is a lot more focus on premium liquor than you are on the everyday. Though there is a bit of a split, because we do have a price-sensitive shopper that is looking for great value and great quality at value. We need to have a product at every pocket and price point that everybody can afford.”
Cocktails were already becoming increasingly popular pre-pandemic, but during the pandemic cocktail making became a clear trend. “We talk about serves in GTR more than we used to historically,” says Blake. “People will drink liquor with a mixer, but if we can give them an accessible cocktail to make, we’re seeing people buy into it, and they are prepared to trade up.”
Again, the trend is premiumization. “People want to trade up, with the perspective: ‘if I’m going to choose to drink, I’m going to drink something better,’” Blake says. “We see that in scotch and absolutely in bourbon, especially in some of our small batch products. Maker’s Mark is doing fantastically well in terms of our trade up to the Jim Beam portfolio.”
Maker’s Mark has a wonderful story behind it, one that may help bring women over to dark spirits, according to Blake. The bourbon was made iconic by Margie, the wife of the Maker’s Mark creator. “It was her idea to make it look unique and different. She had the idea to put the iconic hand-dipped red wax seal on the bottle. Every bottle is hand dipped; it’s B Corp accredited, and every label is hand cut. All because of the matriarch of the family,” says Blake. “We will keep the craft nature of the brand, but we’ll still expand.”
Japanese whisky
Japanese whisky has become increasingly popular and well known outside of Japan in recent years. As the House of Suntory celebrates its 100th anniversary this year, Beam Suntory will host a number of campaigns around that. “You’ll have seen campaigns in some of the domestic markets already, and they will be coming to TR in July this year,” says Blake. “The Japanese whisky trend is linked into to a lot of the other trends we’re seeing, such as the appeal of Japanese food and Japanese culture.”
“When we look at the liquid, it has a completely different nature from other whiskies. The Japanese do everything in a much more precise and focused manner,” says Blake. “And our branding is incredible.”
Beam Suntory has been introducing more premium Japanese whiskies to the TR market; for example the oldest Japanese whisky, Yamazaki 55, which retailed in TR last year at a super-premium price point. “It wasn’t sold in the Americas, but we’ve been looking at where we can temper specific initiatives. You’ll see it in New York, LAX, SFO. We will be making sure to have visibility of Japanese liquor, even though it’s so limited – and it really is.”
Growing markets, post-pandemic
Blake says in GTR, emerging markets and Chinese travelers are always a topic of conversation. “Chinese demographics, Indian passengers, where are they traveling to. There is always a lot of focus on that, and it will continue to be a big part of our strategy. But we also need to support other channels that offer a real opportunity.”
Some of the opportunities Blake mentions include borders, inflight and cruise. “How are we trying to grow all those areas of the mix? I think we learned a lot in the pandemic. We can’t rely on one or two airports, and we can’t rely on one or two areas. So, I think that’s what we’re trying to do.”
For Beam Suntory, recovery has been strong. “We bounced back a lot quicker than we expected,” says Blake. “We moved out of rebuild, and now we’re starting to accelerate. But we’re rebuilding in a slightly different capacity. So, it’s not about doing what we did before, it’s just about being as efficient and effective with the channels that have emerged during this crisis and making sure that we have the right strategy for those locations as well.”
