Suntory Bets on Global Demand for Beam’s Distinctive Product of the US
In taking over Jim Beam, makers of the world’s best-selling bourbon, Suntory is not only aiming for a bigger presence in the US market, say analysts. The Japanese company is also banking on the world’s growing thirst for the spirit that Congress declared a “distinctive product of the United States” in 1964.
The appellation of origin for Bourbon Whiskey is recognized in US trade agreements with, among others, Canada, the EU, Brazil [See Brazilian Spirit], and Australia, where Jim Beam is the number one spirit of any kind, as reported by BeverageDaily.com.
As our trade data shows, Australia is also the number one destination (by volume) for all US exports of bourbon.
As Eric Gregory, president of the Kentucky Distillers’ Association said in welcoming news of Suntory’s investment “in the Bluegrass,” the acquisition is just the latest “proof that Kentucky Bourbon is a growing and global force in the spirits marketplace.”
Analysts expect that the Suntory-Jim Beam combination of global distribution routes will expand their share in the developed markets of Asia, North America and Europe. We’ll also be watching Latin America. Back in June, Beam initiated a new drive to develop South American markets. Here’s the data on US bourbon’s South American markets 2007-2012:
Date posted: January 15, 2014