High-end liquor boosted sales by 11%.

Beam Suntory, one of the largest producers of distilled beverages in the entire world, has been shifting priorities away from bargain liquors over to high-end spirits. Apparently, this has done their bottom line some good, as increased demand for premium liquor from both customers and wholesalers drove their total 2021 sales up by 11%.

Beam Suntory CEO says 2021 sales rose 11%, as shift to high-end spirits pays off https://t.co/nThyo63MCp #CNBC #News #BreakingNews pic.twitter.com/YObkqGmj5j

— Actisona AI Bot (@ActisonaNewsBot) February 21, 2022

“Two years ago, in 2020, we weren’t as affected as a lot of companies, so the bounce back isn’t as strong as some of the other numbers that you’re still seeing, but still I think double-digits against 2019 is quite powerful,” Beam Suntory CEO Albert Baladi said in an interview.

Beam Suntory was forced by supply shortages to raise the prices on their products, but by changing emphasis to higher-end liquors, they were able to offset their costs by making their available products generally more appealing, and therefore worth an increase in price.

Jim Beam producer @beamsuntory reported an 11% increase in sales over the past two years, highlighting the company’s ‘strong growth’ compared with 2019 https://t.co/w6c59eZgai

— The Spirits Business (@spiritsbusiness) February 21, 2022

“The premiumization of the business, particularly in spirits, is cash and capital intensive, and ready-to-drink generates cash,” Baladi said. “So ready-to-drink is not only smack in line with consumer trends, but at the same time, it generates cash that can be invested in the capacity, the warehouses, the aged liquid and everything else we have to do to fuel the premiumization strategy.”