Beam Suntory FY23 results reveal strong GTR performance in Asia

By Benedict Evans |

Beam Suntory whisky selection

Beam Suntory’s diverse portfolio across premium whisky and other spirits ensured strong growth in 2023.

Premium spirits manufacturer Beam Suntory has announced the company’s 2023 full year results, with net sales up 7% year-on-year, and operating income up 13% versus 2022.

High-level figures from Suntory group, the parent organisation of Beam Suntory, indicated 2023 revenue including liquor tax at 3,285.1 billion yen, up 10.6% year on year, and operating income at 317.2 billion yen (£16.8m), up 14.7% year on year.

Revenue excluding liquor tax was 2,952.1 billion yen (£15.2m), up 11.0% year on year.

Takeshi Niinami, President & CEO, Suntory Holdings Limited, commented: “Looking back on the year 2023, the business environment surrounding companies remained challenging, with supply chain costs such as raw materials and logistics continuing to rise, despite COVID-19 being downgraded to a Category V Infectious Diseases, and economic activities beginning to normalise.

However, despite these difficult conditions, the Suntory Group has demonstrated its strength as a global multifaceted beverages company and our full-year operating results have far exceeded our forecasts.”

Regional breakdown

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.

In the Asia Pacific region, sales were up 14.3% as the company experienced strong growth across Japan and emerging Asian markets

Beam Suntory FY23 stats

Beam Suntory experienced a record year for both revenue and operating income, with profit attributable to owners of the Company was up 26.8% year on year.

 

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

Elsewhere in Europe, Latin America, India and GTR, sales grew 8% driven mainly by sales in GTR as global consumer travel saw a post-COVID resurgence.

However, sales in the company’s North America region declined around 2% versus 2022 due to a slowdown in US consumer demand.

“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,” said Greg Hughes, President & CEO at Beam Suntory.

 

Individual brand performance

The company saw growth across key brands including Jim Beam and Maker’s Mark, and its strong performance in Japan and emerging Asian markets was driven primarily by the success of its Japanese whisky portfolio; the House of Suntory celebrated its 100th anniversary in 2023 with special limited-edition offerings, and Beam Suntory experienced larger than anticipated demand for its ready-to-drink (RTD) products, both in Japan and globally.

Beam Suntory whisky products

In terms of global sales, Jim Beam delivered 3% sales growth and Maker’s Mark grew 10% versus 2022.

“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,” added Hughes..

Ready-To-Drink (RTD) offerings delivered around 12% sales growth, benefitting 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.

Sustainability and premiumisation

 In late 2023, the company announced a binding agreement with the Campari Group for the sale of Courvoisier cognac, which is expected to close in 2024 and offer further growth opportunities for Beam Suntory’s premium plus American Whiskey, Tequila, Japanese Whisky and RTDs.
“In 2024, we will continue to advance our premiumisation strategy and focus on key priorities including premium plus American Whiskey, Tequila, Japanese Spirits and RTDs,” added Hughes.

Maison Courvoisier earned the Butterfly Mark, a certification given to luxury brands which rigorous standards in sustainability, social practices and governance, while Makers Mark filled its first Certified Regenified barrel.

The Certified Regenified designation is reserved for companies which meet strict requirements in regenerative agriculture and supply chain-solutions, with Maker’s Mark becoming the first spirits distillate to achieve this certification.

Further, Beam Suntory received a score of 100 on the Human Rights Campaign Foundation’s 2023-2024 Corporate Equality Index benchmarking survey and report measuring corporate policies and practices related to LGBTQ+ workplace equality.

READ MORE: Maker’s Mark releases Wood Finishing Series Singapore Edition

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