US drinks giant Beam said that sales of its Irish whiskey brand Kilbeggan were down by 26% in the first half of 2013.
Beam, which acquired Cooley Distillery for €73 million in January 2012, posted higher than expected quarterly profit yesterday, thanks to new products such as Jim Beam Honey bourbon.
Second quarter net income was $74.3 million, or 46 cents per share, down from $101.1 million, or 62 cents per share, a year earlier. Net sales rose 7% to $637.6 million, topping analysts’ average estimate of $628.6 million.
“Beam delivered strong second quarter results as five of our seven Power Brands produced double-digit sales growth,” said Matt Shattock, president and chief executive officer of Beam.
“Our strategy to create famous brands paid off in strong demand for our flagship Jim Beam brand, which grew double digits across the US and Europe as premium innovations such as Jim Beam Honey and Devil’s Cut added to growth for the core Jim Beam white label."
"We gained share in Tequila on strong performance for Sauza and Hornitos, and in vodka as Pinnacle continued its double-digit growth trajectory. At the same time, our total sales growth was tempered by soft conditions in the US ready-to-serve cocktails category.”
“Beam entered the second half of 2013 in a strong competitive position, and we believe our agility in a dynamic global market will serve us well as we continue to create value. Our broad portfolio of premium brands, innovation capabilities, strength in Bourbon and strong global routes to market – combined with consistent execution of our strategy – give us confidence that we will gain market share globally in 2013 and continue to deliver sustainable, profitable long-term growth,” Shattock concluded.
