Beam Suntory, one of the largest producers of distilled beverages in the world, has been working to shift its image to higher-end spirits. Its popular Knob Creek bourbon has sported a new look for the past three years, with an updated label design that has brought back its nine-year age statement, and a new line of 12-year and 15-year versions of the whisky. While prices once ranged from $25 to $50 per bottle, prices are now anywhere from $36 to $200. Following the company’s conscious efforts to step into the higher-end market, international sales reportedly rose 11% in 2021.
CEO Albert Baladi said in an interview: “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.” Baladi continued to explain that the spirits industry generally does well even in times of economic crisis, and that raising prices encourages the company to continue upgrading its beverages. An advantage has been that customers are less sensitive to price hikes made to counterbalance inflation, as they’re pleased to pay more for higher-end drinks.
Ready to tap into another beverage line, Beam Suntory has announced plans to expand its ready-to-drink cocktail line and has partnered with Sam Adams brewer Boston Beer. Although unexpected, this trendy market line has proven lucrative and ranked as the fasting growing of any spirit category, according to the Distilled Spirits Council of the U.S. Beam Suntory’s premixed brands Sauza and Truly Vodka will be released this spring.