Our Spirit Supplier of the Year: Suntory Global Spirits
With the spirits industry still experiencing a softer market after record high sales during Covid, producers have worked overtime to come up with creative marketing solutions to keep sales flowing. Our 2024 Spirits Supplier of the Year, Suntory Global Spirits (previously known as Beam Suntory) is hitting its stride, with Marker’s Mark, Hornitos, Knob Creek and Basil Hayden increasing case sales from 2022 to 2023.
We spoke with the company’s U.S. chief commercial officer Dave Turo on Suntory’s success over the past year, as well as what’s in store for the future.
What led to Suntory Global Spirits’ success over the past year?
Dave Turo: At Suntory Global Spirits, we attribute our success to our relentless focus on quality; it’s what sets us apart from other suppliers. As we experience a softer market as an industry, it’s more important than ever that we meet consumers’ expectations. That means offering the type of products consumers are looking for and delivering with the highest quality. Interest in a category, a particular innovation or brand is what gets someone to try you once, but the quality is what earns you the repeat purchase.
What challenges did the company have to overcome?
DT: We faced many of the same challenges as our peers in the industry: After many years of tailwinds, 2023 was a turning point for the industry, when it became a battle to win consumer attention and their hard-earned dollars. We attribute the challenges we saw in 2023 to three key trends: 1) Consumer behavior normalizing post-Covid; 2) Rising interest rates that changed retailer buying patterns; and 3) Inflation making consumers hold their wallets a bit tighter.
For our team at Suntory Global Spirits, it came down to making sure our brands connected with consumers, that we have innovations that appealed to a range of consumers and focusing on what we can control, such as driving in-market execution like enhanced distribution and impactful displays and increased menu mentions on cocktail lists to ensure our brands stand out.
What activations or programs were most helpful in growing your brands?
DT: Our global House of Suntory 100th anniversary activation played a big role in driving demand for our high-end [limited-time offerings]. We released a Suntory Anniversary Tribute directed by Academy Award-winning Director Sofia Coppola and starring Keanu Reeves, telling the story of the brand’s heritage and whisky-making legacy. Suntory has long been the leader in Japanese whisky and the centennial activation spoke to our pioneering role in making Japanese whisky what it is today.
Across our portfolio, our sports activations are key to growing core brands such as Jim Beam, Maker’s Mark and Hornitos. We have partnerships across a range of teams, including the New York Yankees, Brooklyn Nets, New York Knicks, Boston Red Sox, Chicago Cubs, Philadelphia Phillies, Atlanta Braves, Dallas Cowboys and the LA Dodgers. These programs allow us to reach a wide range of consumers in key metropolitan areas and create multiyear partnerships for an ongoing presence.
What do you have planned for 2024 for Suntory Global Spirits to engage with consumers?
DT: 2024 is our year to do big things. Jim Beam is a big focus for our business this year. From a marketing perspective, we’ve launched the next iteration of our People are Good For You Campaign, ‘Best Enjoyed Together’. The campaign is a celebration of what togetherness looks like and stands for our belief that life’s moments – and great whiskeys – are best enjoyed together.
Jim Beam has also partnered with the U.S. Soccer Federation for a multi-year partnership that brings people together for the love of the game. It puts Jim Beam in the places and spaces where people come together to cheer on the things that they love. At key games, we’ll host block parties that transform neighborhoods across the country into festivals to unite guests through the love of Jim Beam and soccer.
From an innovation perspective, this year we completely reformulated and relaunched Jim Beam Black. We have a new pack design, new campaign and new liquid inside the bottle. The new Jim Beam Black is aged for seven years, the perfect amount of time to bring out notes of caramel, vanilla and oak.
We also have two LTOs for Jim Beam: Jim Beam Sunshine Blend, which is a milder taste is a great option for mixing refreshing cocktails, and Jim Beam Winter Reserve, with notes of vanilla, clove and cinnamon, really perfect for those warming winter drinks – both coming later this year.
Continuing with the bourbon theme, we rereleased the Basil Hayden Subtle Smoke LTO, which has a unique smoky flavor paired with a high-rye mash bill. We’re introducing two Baker’s LTOs this year as well: a high rye LTO and a Baker’s 13 year.
We’re also continuing to innovate in our RTD portfolio: On The Rocks introduced the Strawberry Daiquiri as a permanent expression this year, as well as a Blue Hawaiian LTO for summer. We’ve brought -196, a vodka seltzer that freezes and crushes whole fruit before infusing it into the drink, into new markets and launched a variety pack that includes lemon, peach and grapefruit flavors. -196 is the #1 selling RTD in Japan, and we’re excited to bring it to more U.S. consumers.
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