Beam Suntory Reports Results for First Half of 2020
Beam Suntory Reports Results for First Half of 2020
Chicago, Illinois, July 30, 2020 – Beam Suntory, a leading global premium spirits company, today reported results for the first half of 2020.
Net sales declined 3% for the January-June period, reflecting the adverse impact of the global pandemic. Sales declined 3% in the United States, as significantly lower sales to restaurants and bars more than offset increases in off-premise outlets. Sales were lower at a double-digit rate in markets most severely impacted by the pandemic, including Spain, India and the Global Travel Retail channel. Sales grew at a low-single-digit rate in Japan, Germany, the U.K. and Russia, and increased at a double-digit rate in Canada.
Sales for the company’s brands reflected pandemic-related trends in consumer behavior, including the strong appeal of familiar brands, continued premiumization, and convenient formats. As a result, sales for Jim Beam grew at a low-single-digit rate; small batch bourbons Basil Hayden’s and Knob Creek, as well as Toki Japanese whisky, Roku gin and Haku vodka, grew at double-digit rates; and Japanese ready-to-drink products grew 20%. Sales for brands with greater reliance on restaurants, bars and travel retail were generally lower.
“While our sales were substantially below our expectations at the start of the year, the people of Beam Suntory rose to the challenge and fueled stronger momentum than we expected at the onset of the pandemic,” said Albert Baladi, president & CEO of Beam Suntory. “Our teams demonstrated impressive agility to pivot in many important ways – to redirect resources to fast growing channels such as off-premise and eCommerce, to meet consumers in the new ‘home premise,’ and to support restaurants and bars through new revenue streams like cocktails to go. I’m especially proud how our teams urgently repurposed facilities to produce enough sanitizer solution to clean more than 50 million pairs of hands, developed programs to support hard-hit hospitality industry workers, leaned into the important issue of social justice, and continued momentum behind our environmental sustainability initiatives. Beam Suntory’s vision is Growing for Good, and the first half clearly demonstrated our company’s values-based, purpose-driven approach that has benefited our communities, the cause of public health and the environment.”
Underscoring the strength of the company’s culture, Beam Suntory was recently recognized as a Great Place to Work in the United States, Australia, Germany and Mexico.
“Looking ahead, the ongoing pandemic presents continued uncertainty across global markets, and we must still manage the adverse impact of retaliatory tariffs. Even so, we’re determined to boost strategic investment to compete intensively in the current environment and emerge from the crisis in the strongest possible position.”
Beam Suntory’s parent company, Suntory Holdings, will report its results for the first half of 2020 on August 6th.
Update on Beam Suntory Growing for Good initiatives
Sanitizer: The company’s facilities in Kentucky, Japan, Spain, Scotland, Ireland, Canada and Mexico produced finished hand sanitizer or alcohol for sanitizer products to help hospital systems and first responders fight the COVID-19 pandemic. Production of sanitizer to date has been sufficient to clean more than 50 million pairs of hands.
Hospitality industry: The company provided more than $2 million in support to restaurant and bar workers and their families across numerous markets. Initiatives included Maker’s Mark’s partnership with the LEE Initiative Restaurant Workers Relief Program, which donated approximately 400,000 meals to restaurant workers in more than 20 US cities, the company’s Shift-Meals To-Go program, which arranged more than 15,000 free meals for US hospitality workers and their families, the First Shift Meals program to support Canadian hospitality workers, and a partnership with the National Restaurant Association of India to provide relief to thousands of restaurant staff and their families.
Environmental Sustainability
Carbon Reduction: Beam Suntory is step-changing its use of renewable electricity, reaching an estimated 85% of electricity needs this year with an expectation of 100% in 2022. As a result, the company expects to reduce CO2 emissions by up to 20%, progressing towards the company’s current 2030 target to reduce absolute Scope 1&2 emissions by 25% (versus 2015 baseline). Suntory Holdings, Beam Suntory’s parent company, recently set an ambition to achieve net zero emissions across the entire value chain by 2050.
Water Efficiency: The company has reduced water use per unit of production by 7%, and planned investments are expected to result in a reduction up to 50% by 2022, well in excess of its current 2030 target of 15% (versus 2015 baseline).
Watershed Protection: Having first initiated Natural Water Sanctuary programs at Maker’s Mark and adjacent to the Jim Beam distillery, the company has expanded watershed protection activities to production facilities in India, Mexico, Spain and the US Virgin Islands. Future investments are planned in Scotland, Ireland, France and Canada.
About Beam Suntory Inc.
As a world leader in premium spirits, Beam Suntory inspires human connections. Consumers from all corners of the globe call for the company’s brands, including the iconic Jim Beam and Maker’s Mark bourbon brands, Suntory whisky Kakubin and Courvoisier cognac, as well as world renowned premium brands including Knob Creek, Basil Hayden’s and Legent bourbon; Yamazaki, Hakushu, Hibiki and Toki Japanese whisky; Teacher’s, Laphroaig and Bowmore Scotch whisky; Canadian Club whisky; Hornitos and Sauza tequila; EFFEN, Haku and Pinnacle vodka; Sipsmith and Roku gin; and Midori liqueur.
Beam Suntory was created in 2014 by combining the world leader in bourbon and the pioneer in Japanese whisky to form a new company with a deep heritage, passion for quality, innovative spirit and vision of Growing for Good. Headquartered in Chicago, Illinois, Beam Suntory is a subsidiary of Suntory Holdings Limited of Japan. For more information on Beam Suntory, its brands, and its commitment to social responsibility, please visit https://www.beamsuntory.com and https://www.drinksmart.com.
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