Beam Reports Record Sales in 2012
US-based global spirits group Beam has reported a 7% increase in net sales for 2012 to a record $2.5 billion. Sales for the year were up 6% on a comparable basis, significantly outperforming the company’s global market. Comparable net sales rose by 7% in North America; by 5% in Europe/Middle East/Africa (EMEA) and by 5% in Asia Pacific/South America (APSA). Group operating income was $575.9 million, up 46%.
Growth of the company’s premium global ‘power brands’ and broad-based growth across geographies fueled the full-year comparable sales performance. Beam’s brands include Jim Beam and Maker’s Mark bourbon, Sauza tequila, Pinnacle vodka, Canadian Club whisky, Courvoisier cognac, Teacher’s and Laphroaig Scotch whisky, and Kilbeggan Irish whiskey. New product innovations, higher pricing in select categories, and trading up by consumers contributed to favorable price/mix and margin enhancement.
“We closed the year with another strong sales quarter as we continued to outperform our market,” says Matt Shattock, president and chief executive officer of Beam. “We are particularly pleased that we outperformed in 2012 even as we increased investment in the competitive position and long-term growth of our business. These investments included a double-digit increase in brand-building investment, as well as higher capital expenditures to produce more aged spirits to meet future demand.”
