February 19 2024  |  Spirits & Tobacco

Beam Suntory presents full year 2023 financial results

By Hibah Noor

Beam Suntory's Jim Beam Bourbon delivered 3% sales growth year-on-year

Beam Suntory, a world leader in premium spirits, has revealed the company’s 2023 full year results, with net sales up 7% year on year and operating income up 13% versus 2022.

The company continued to drive growth across key brands including Jim Beam and Maker’s Mark, and experienced strong demand for its award-winning Japanese whisky portfolio as the House of Suntory celebrated its 100th anniversary in 2023 with special limited-edition offerings. Global travel retail also played a key role in the company’s steady growth.

Greg Hughes, President & CEO at Beam Suntory, said, “We are pleased with the results we delivered last year as our portfolio of brands – rooted in quality and craftsmanship – and our geographic diversity continued to benefit our business.

“The House of Suntory’s 100th anniversary offerings generated incredible demand, and we saw strong performance globally across Japan, Emerging Asia and global travel retail. While we faced some challenges as an industry, particularly in the US, as we look to 2024, we remain focused on our premiumization strategy and further building our credentials in the prestige and ultra-premium space.”

Performance by Brand

Jim Beam delivered 3% sales growth and Maker’s Mark grew 10% versus 2022 as the company maintained its leadership in the American Whiskey category.

Maker's Mark Kentucky Straight Bourbon continues to be a key brand in the Beam Suntory portfolio

Japanese whiskies, including Yamazaki and Hakushu, saw strong double-digit sales growth. Ready-To-Drink (RTD) offerings delivered around 12% sales growth, benefiting from strong sales on Lemon Sour and Jim Beam and Kakubin RTDs, and the global expansion of -196. The company recently announced additional expansion across the US, Europe and Southeast Asia for -196, an RTD brand that has seen great success in Japan and Australia. Tequila brand El Tesoro had a standout year with strong double-digit growth and Knob Creek delivered strong 10% growth.

The company announced in late 2023 that it had entered into a binding agreement with the Campari Group for the sale of Courvoisier cognac. The transaction is expected to close in 2024 and furthers Beam Suntory’s focus on key growth categories of premium plus American Whiskey, Tequila, Japanese Whisky and RTDs.

Performance by Geography

The company benefitted from geographic diversity as strong performance in Japan, Emerging Asia and Global Travel Retail (GTR) offset a challenging environment in North America and some key markets including India, China and Spain.

Sales in the company’s North America region declined around 2% versus 2022 due to a slowdown in consumer demand in the US as the category resets post-COVID.

In the Asia Pacific region, sales were up 14.3% as the company experienced strong growth across Japan and Emerging Asia.

In the International region, which includes Europe, Latin America, India and GTR, sales grew 8% driven mainly by sales in GTR as global consumer travel saw a post-COVID uptick.

Focus on Strategic Priorities

Beam Suntory remains focused on its premiumization strategy as it works toward its ambition to be the world’s most admired premium spirits company. To achieve this goal, the company continues to relentlessly pursue excellence in quality, brand-building and innovation, commercial capabilities and execution, and becoming an industry leader in Sustainability, Inclusivity and Responsibility.

Beam Suntory operates its business in line with its core values of Growing for Good and Giving Back to Society, and achieved important milestones across its Proof Positive sustainability strategy in 2023 including:

  • Maker’s Mark filled its first Certified Regenified barrel of Maker’s Mark whisky, becoming the first spirits distillate to achieve this certification designated by Regenified, a leading third-party regenerative agricultural verification and supply chain-solution company.
  • Maison Courvoisier earned the esteemed Butterfly Mark, a certification given to luxury brands that meet rigorous standards in sustainability, social practices and governance.
  • Beam Suntory received a score of 100 on the Human Rights Campaign Foundation’s 2023-2024 Corporate Equality Index, the nation’s foremost benchmarking survey and report measuring corporate policies and practices related to LGBTQ+ workplace equality.
  • Sustainable packaging initiatives from the Laphroaig and Sipsmith brands in line with the company’s long-term commitments to achieve net zero carbon emissions across its value chain by 2040.

“In 2024, we will continue to advance our premiumization strategy and focus on key priorities including premium plus American whiskey, tequila, Japanese spirits and RTDs,” Hughes continued.

“I’m confident we have the right resources in the right places to put us in a position to win, and I’m encouraged by the signs we are already seeing at the start of this year as we expect consumer demand for spirits to remain strong. I’m very proud of how our teams around the world continue to deliver in service of our great brands and company.”

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