Suntory Group Alcoholic Beverages Business Strategy for 2014

In 2013, the Suntory Group’s alcoholic beverages business was up on the previous year due to factors such as the creation of new demand by breaking ground in the RTS*category, in addition to the strengthening of its core brands such as The Premium Malt’s, Kin-Mugi, All-Free, Kakubin, Yamazaki, Hakushu, and -196°C. The group will continue to roll out proactive initiatives in an effort toward further growth in 2014.

In 2014, Suntory Liquors Limited will make “premium” in the sense of high added value our key focus and work to build demand by offering value. In addition, we will take on the challenge of innovation in every area from product development to the creation of new categories, all oriented toward creating new value.

Suntory will roll out proactive marketing initiatives for core brands such as The Premium Malt’s, Kakubin, and -196°C, RTS beverages, and more.On top of that, outside of Japan we will seek to develop a portfolio of brands that engage the unique circumstances of each region in order to establish solid bases for business.

Spirit Business

Suntory’s spirits business in 2013, due to the breaking of new ground in the RTS category and other achievements in addition to the favorable growth of core brands including Kakubin, Yamazaki, Hakushu, and -196°C, 3% growth was achieved compared to the previous year. In 2014, we will aim for 1% growth compared to the previous year by continuing to cultivate and strengthen our brands further in growing categories including highballs, premium whiskies, RTDs, and RTSs.

Whisky

Review of 2013

The whisky market is estimated to perform better than the previous year due to expanding demand for highballs and premium category beverages. With that, there were effects due to some changes in the brands of imported whiskies purveyed, but the core brands performed favorably.

Kakubin showed growth of 3% compared to the previous year as a result of efforts to more actively promote its compatibility with food with the aim of further market expansion and the establishment of highballs. Additionally, Premium Kakubin, which went on sale in May, has received high praise.

As for domestic premium whiskies, Yamazaki, Hakushu, and Hibiki 12 Years Old (in a 500 mL size) made favorable movement, up 16% compared to the previous year. Suntory’s whiskies have taken prizes in worldwide liquor competitions, with Hibiki 21 Years Old winning a “Trophy,” the highest prize in its category, “Worldwide Whiskies,” and Suntory Liquors Limited being named Distiller of the Year for the third time at the 2013 International Spirits Challenge (ISC).

Further, Jim Beam, the world’s top*6 bourbon, which Suntory began handling in January, has made great contributions in terms of acquiring new consumers and activating the import whisky market.

*6 2012 sales numbers (Source: IMPACT NEWSLETTER February Volumes 1 & 15, 2013)

Strategy for 2014

Suntory will work to activate the whisky market through such efforts as bolstering marketing activities for Kakubin, strengthening premium whisky value promotion activities, strengthening marketing activities for Jim Beam and Maker’s Mark, all with the aim of 1% growth over the previous year.

Strengthening Kakubin marketing activities

Suntory will strengthen its marketing activities related to Kakubin using good flavor and compatibility with food as themes. The relevant television commercials will be re-launched in February, and in conjunction with those commercials Suntory will make appeals to shops involving how to create delicious kaku highballs and the allure of the same as drinks to go with food. Suntory will work with drinking establishments to expand kaku highball fandom by further bolstering activities related to quality at the point of consumption.
 
Strengthening premium whisky value promotion

In order to help consumers experience the luxurious frame of mine inherent to whisky, Suntory will continue to strengthen its marketing activities related to premium whiskies with a central focus on the Hibiki brand and appeal to the high quality that comes with the group’s various malts and superior blending techniques. Additionally, by strengthening marketing activities for smaller size units of Yamazaki, Hakushu, and Hibiki 21 Years Old, the group is working to expand the arena of premium whisky drinking. The Hakushu brand has garnered high praise from the younger generation for Hakushu highballs with mint, and Suntory will work to make active proposals for television commercials and more to promote the brand and acquire new consumers.
 
Strengthening marketing activities for Jim Beam and Maker’s Mark

Suntory will be investing in new television commercials starting in mid-January for Jim Beam, the world’s top bourbon, keeping “cool bourbon” as its key message with the aim of further improving brand recognition and desirability. As for Maker’s Mark, the group will make appeals based on the high quality carefully distilled into each and every bottle through seminars and other events.

Overseas Alcoholic Beverage Business

Review of 2013In terms of whisky, our active promotion of Yamazaki, Hakushu, and Hibiki in Europe and America and Kakubin in Asia enjoyed favorable reception, and we expanded our whisky sales abroad. The Premium Malt’s showed favorable growth in Asia. With Morrison Bowmore Distillers Limited we have expanded sales with a focus on Bowmore and Auchentoshan single malt whiskies.Strategy for 2014We will strengthen marketing campaigns in accordance with the unique circumstances of each region throughout the world. In Europe and America, we will develop the Yamazaki, Hakushu, and Hibiki lines of premium whisky, as well as the liqueur MIDORI, while in Asia we will develop Kakubin and The Premium Malt’s. Similarly, we will continue our active efforts to strengthen Bowmore and Auchentoshan single malt whiskies as global brands.

*RTS (Ready to Serve): Alcoholic beverages finished with a balanced taste optimized for drinking on ice, with an alcohol content between roughly 10% and 20%.

On the heels of the indulgences of the holiday season, we present seven delicious drams, all with a foodie theme in the title…because you probably haven’t had enough good stuff in the last few weeks! Dig in and enjoy January’s temptations…

To purchase please contact The Strath Ale Wine and Spirit Merchants at http://ow.ly/ssFIF

Cask No. 50.51 Wedding cake and jelly babies
22 years old; refill bourbon barrel; 55.8%abv
The juicy, fruity nose has apples, oranges, pineapple, vanilla, wedding cake and jelly babies, but all packaged in walnut shells, bookshelves and dunnage warehouse pulpits. The palate is big and tasty – candied chestnuts, buttered gingerbread, Snickers, honey.

Cask No. 84.15 An apple a day…
11 years old; refill bourbon barrel; 56.4%abv
Very fruity, red apples, bananas and pears followed by sweet lemon drizzle cake. The taste neat is hot like biting on a chili. With water, apple sorbet and Campino candy; the taste is very refreshing like a spritzy apple wine with sparkling water.

Cask No. 64.42 Peppered strawberries with Creme Anglaise
22 years old; refill bourbon barrel; 55.6%abv
A walk on a warmer summer’s evening in a flower garden, with honey brioche and Creme Anglaise. Neat on the taste, velvety and mouth-coating and slightly peppered strawberries. With very little water it turns into a fruit cocktail and barley sugar soaked in rum.

Cask No. G7.4 Buttery waffles on polished wood
28 years old; refill hogshead; 58.4%abv
The delightfully sweet nose suggests toffee sauce, ice-cream, banana and iced caramels-complexified by cigarette packets and oriental massage parlours. The palate has maple syrup, chocolate fondue with fruit and oaky spices (clove, nutmeg, cinnamon) – lip-smackingly tasty.

Cask No. 73.51 Mead, sherry and butterscotch
23 years old; refill sherry butt; 57.9%abv
Burnt notes of marmalade, hot sneakers, maple syrup and welly boots – pleasant for some, not for others. Hot, bitter, and tannic to taste, crying out for water. Dilution revealed mead, dark honey, raisins, figs, butterscotch, brown sugar; elegant on the palate (still rubbery) with barley sugar, apricot jam.

Cask No. 66.36 Milano salami and tropical fruit kebab
10 years old; refill sherry butt; 58.2%abv
This is a big, massive dram – Italian salami, spare ribs marinated in a hickory sauce. The taste is hot, spicy and smoky like a heavily char-grilled sausage. With water tropical fruit notes appear and the taste has a scorched heather note to finish.

Cask No. 33.125 Salted caramel lollipop
7 years old; 1st fill ex-bourbon barrel; 64.4%abv
Smoky peaty chimneys, fresh tobacco, breakfast kippers and gauze dressings neat on the nose. The taste antiseptic cream, peaty, tarry but also fresh and salty. Water adds sticking tar to an expensive leather shoe and the taste is a balance between smoke, sweetness and salt.

To purchase please contact The Strath at
http://ow.ly/ssFIF

So it’s a new year and our second auction is coming together nicely. For those of you who have yet to register don’t forget that registration is FREE until January 31st 2014. It’s also not to late for any sellers to take advantage of our 0% commission offer, we require bottles to be with us by the 17th January for our next auction. The offer is open until January 31st 2014. World wide shipping is available.

Iain McClune
WhiskyAuctioneer.com

UK vlogger Joe Ellis from Whisky Wednesday reviews Cutty Sark 12 Year Old 

http://youtu.be/PtV9ZgoCuMs 

http://Facebook.com/whiskytube 

http://Twitter.com/whiskytube

Suntory Holdings To Acquire Beam In $16 Billion Transaction

OSAKA, JAPAN and DEERFIELD, ILLINOIS – JANUARY 13, 2014 – Suntory Holdings Limited and Beam Inc. (NYSE: BEAM) today jointly announced that they have entered into a definitive agreement under which Suntory will acquire all outstanding shares of Beam for US$83.50 per share in cash or total consideration of approximately US$16 billion, including the assumption of Beam’s outstanding net debt.  The transaction consideration represents a 25% premium to Beam’s closing price of $66.97 on January 10, 2014; a 24% premium to the volume-weighted average share price over the last three months; and a multiple of more than 20 times Beam’s EBITDA1 for the 12-month period ended September 30, 2013. 

The transaction, which has been unanimously approved by each company’s board of directors, is expected to close in the second quarter of 2014, subject to Beam stockholders’ approval, regulatory approvals and other customary closing conditions. 

The transaction will create a stronger global player in premium spirits with annual net sales of spirits products exceeding $4.3 billion.  Its combined  portfolio of leading brands will include Beam’s Jim Beam, Maker’s Mark and Knob Creek bourbons, Teacher’s and Laphroaig Scotch whiskies, Canadian Club whisky, Courvoisier cognac, Sauza tequila, and Pinnacle vodka, and Suntory’s leading Japanese whiskies Yamazaki, Hakushu, Hibiki, and Kakubin, Bowmore Scotch whisky and Midori liqueur. Beam’s President and Chief Executive Officer Matt Shattock and the current Beam management team will continue to lead the business, which will be managed from Beam’s headquarters outside Chicago, Illinois.

Nobutada Saji, President and Chairman of Suntory’s Board, said, “I am delighted that we can announce this agreement with Beam, a company with a portfolio of leading global brands, including Jim Beam and Maker’s Mark, and a strong global distribution network. I believe this combination will create a spirits business with a product portfolio unmatched throughout the world and allow us to achieve further global growth.  We are particularly excited about the prospect of working more closely with Beam’s excellent management and employees who will play an integral part in the growth of the business.”

Unparalleled Breadth in the Fast-Growing Whisky Category

“This is a very exciting development that delivers substantial value for our stockholders and creates an even stronger global company with an excellent platform for future growth,” said Matt Shattock, President and Chief Executive Officer of Beam Inc.  “Together we will be a global leader in distilled spirits with the #3 position in premium spirits and a dynamic portfolio across key categories.  With particular strength in Bourbon, Scotch, Canadian, Irish and Japanese whisky, the combined company will have unparalleled expertise and portfolio breadth in premium whisky, which is driving the fastest growth in Western spirits.

“Our combined global routes to market will expand our joint distribution footprint, and the powerful innovation capabilities both companies have developed will be a significant advantage,” Shattock continued.  “Backed by the expertise and the financial resources of Suntory, the people of Beam look forward to working with the Suntory team to continue outperforming our global market and to building on the proud traditions and deep heritage of our brands across all the major spirits categories.”  

On completion of the transaction, Suntory and Beam aim to achieve growth in markets worldwide, including the United States, the world’s largest spirits market , by leveraging a combined portfolio of strong brands, an expanded distribution network and fully sharing production and quality control know-how.

Suntory and Beam already have a successful business relationship under which Suntory distributes Beam products in Japan and Beam distributes Suntory’s products in Singapore and other Asian markets. 

Creating Substantial Value for Beam Stockholders

“The attractive valuation which has been achieved for Beam stockholders is a result of the successful strategy and excellent execution by the worldwide Beam team,” said Beam Chairman David Mackay.  “Indeed, Beam will have achieved a total shareholder return of 106%  since Beam became a standalone spirits company in October of 2011.”

Suntory intends to fund the transaction through a combination of cash at hand and fully committed financing provided by The Bank of Tokyo-Mitsubishi UFJ.  Mitsubishi UFJ Morgan Stanley is acting as exclusive financial advisor to Suntory and Cleary Gottlieb Steen & Hamilton LLP is acting as legal advisor. Centerview Partners and Credit Suisse are serving as financial advisors to Beam and Sidley Austin LLP is serving as legal advisor.  

_________________

1  LTM EBITDA before charges/gains as of September 30, 2013

2  By Value. Excludes local spirits

3  Based on Bloomberg Total Shareholder Return function

About Suntory

Founded in Osaka, Japan in 1899, Suntory Group is Japan’s leading player in alcoholic and non-alcoholic beverages, with sales of $17.6 billion (2012) .  Suntory’s alcoholic beverage business encompasses high-quality brands represented by its flagship single malt whisky “Yamazaki”, “The Premium Malt’s” beer, wine, and ready-to-drink (RTD) brands. In recent years, Suntory Whiskies are becoming increasingly popular among consumers worldwide, as they gain a reputation for quality, supported by success at some of the world’s most renowned spirits competitions.   Suntory’s non-alcoholic beverage business is expanding successfully into international markets and was listed on the Tokyo Stock Exchange in 2013 as Suntory Beverage & Food Limited. Suntory has supplemented its organic growth in overseas markets with strategic acquisitions including New Zealand beverage company Frucor Group and French beverage company Orangina Schweppes Group in 2009 as well as the acquisition of GlaxoSmithKline’s Lucozade and Ribena drink brands in 2013.　Suntory Group currently operates in Asia, Oceania, Europe, the Americas and Africa, with more than 28,000 employees (as of December 31, 2012). For more information on Suntory, please visit www.suntory.com 

About Beam Inc. 

As one of the world’s leading premium spirits companies, Beam is Crafting the Spirits that Stir the World.  Consumers from all corners of the globe call for the company’s brands, including Jim Beam Bourbon, Maker’s Mark Bourbon, Sauza Tequila, Pinnacle Vodka, Canadian Club Whisky, Courvoisier Cognac, Teacher’s Scotch Whisky, Skinnygirl Cocktails, Cruzan Rum, Hornitos Tequila, Knob Creek Bourbon, Laphroaig Scotch Whisky, Kilbeggan Irish Whiskey, Larios Gin, Whisky DYC and DeKuyper Cordials.  Beam is focused on delivering superior performance with its unique combination of scale with agility and a strategy of Creating Famous Brands, Building Winning Markets and Fueling Our Growth. Beam and its 3,400 passionate associates worldwide generated 2012 sales of $2.5 billion (excluding excise taxes), volume of 38 million 9-liter equivalent cases and some of the industry’s fastest growing innovations. 

Headquartered in Deerfield, Illinois, Beam is traded on the New York Stock Exchange under the ticker symbol BEAM and is included in the S&P 500 Index and the MSCI World Index.  For more information on Beam, its brands, and its commitment to social responsibility, please visit www.beamglobal.com and www.drinksmart.com.

The Scotch Malt Whisky Society will be holding  a tasting aimed at new members and it will be led by the Society’s ambassador Annabel Meikle. The tasting is scheduled to commence at 3PM on Sunday January 19th, 2014. It is being hosted by the Vancouver Island (Victoria, BC, Canada) retail representative of the Society the Strath and tickets can be secured HERE Further details will be published when they are available. What an elegant way to spend a Sunday afternoon!

Annabel Meikle

Compass Box Delilah’s Blended Scotch Limited Edition 80 Proof – $69.99 (3 bottles available) 

Compass Box The Peat Monster Tenth Anniversary Blended Malt Scotch 97.8 Proof – $99.99 (6 bottles available) 

Compass Box Great King Street New York Edition Blended Scotch 92 Proof – $64.99 (3 bottles in stock)

Mora’s Fine Wine & Spirits

www.moraswines.com

631-941-4458

sev.clemens@moraswines.com

www.ralfy.com opens another bottle of whisky with Whisky Review 421 – Tomatin 30yo scotch

Glenmorangie’s new “friendship” whisky launched   

— The fifth annual offering from its award-winning Private Edition range — 

Glenmorangie has released its eagerly-awaited fifth annual limited edition single malt whisky: Companta. 

Its predecessor, Ealanta, was recently named the world’s best dram by Jim Murray, one of the world’s leading whisky experts. 

Created by wood management pioneer and three-time winner of Malt Advocate’s coveted Industry Leader of the Year award Dr Bill Lumsden, Glenmorangie Companta is the latest in the Private Edition range – a group of rare and intriguing single malts. 

Glenmorangie Companta is Scots Gaelic for friendship and celebrates Glenmorangie and distinguished French vineyards’ shared pursuit of perfection. 

Dr Bill Lumsden, Director of Distilling and Whisky Creation, said: “Having spent over 20 years travelling to some of France’s most renowned vineyards, I’ve had the opportunity to sample many rare and intriguing wines in search of the finest casks to complement the extra-maturation of our whisky. 

“Some of my most memorable visits have been to Burgundy, where the dedication and attention to detail that goes into their craft never ceases to amaze me. 

“The smaller vineyards of the region don’t seem to worry about yields, costs, or timings. They work tirelessly, simply to produce the very best wine. In the same spirit as Glenmorangie, they stop at nothing in the pursuit of perfection. 

“This shared philosophy inspired me to create the ultimate tribute to my longstanding love for French vineyards and the friends that I’ve had the pleasure to make throughout my travels.” 

On the nose, Companta exudes rich, “autumnal” scents of red berries and damp forest floors, with a hint of fragrant woodsmoke complementing notes of aromatic, nutty oak. 

Upon tasting, a spicy palate redolent of cherries and stewed fruits is slowly revealed, as notes of sugared plums, blood orange and rose-hip syrup emerge alongside milk chocolate and brown sugar, leading into a mouth-coating finish. 

Bottled at a strength of 46 per cent, and non chill-filtered for extra body and texture, Glenmorangie Companta is available from independent specialist retailers and department stores including Royal Mile Whiskies and the Whiski Rooms with an RSP of £69.99.  

A refined balance between bold spice and rich, smooth sweetness, Companta is the result of a careful assemblage of Glenmorangie extra-matured in both renowned Burgundy Grand Cru Clos de Tart casks and sweet fortified wine casks from Côtes du Rhône. 

Lumsden explained: “Selecting parcels of Glenmorangie which had been matured in traditional American white oak ex-bourbon barrels, I transferred the spirit into casks having previously contained one of my personal favourites – the full-bodied Grand Cru wine from Clos de Tart, one of the most celebrated vineyards in Burgundy. 

“After a period of extra-maturation, the casks imparted additional body and deep berry-like flavours to the trademark elegant, floral character of the Glenmorangie.” 

“To complement the bold, spicy character imparted from the Grand Cru casks, I selected a parcel of Glenmorangie which had been extra-maturing in casks having previously contained a lusciously sweet fortified wine from Côtes du Rhône. It took some time, but with careful fine tuning we reached a harmonious assemblage which proved the perfect balance; neither too bold nor too tame!” 

NOTES

About Glenmorangie:

Glenmorangie Single Malt Scotch Whisky originates in the Scottish Highlands where, at the Glenmorangie Distillery, it is distilled in the tallest malt whisky stills in Scotland, expertly matured in the finest oak casks, and perfected by the Men of Tain. The Distillery was founded in 1843 and is renowned as a pioneer in its field uniting tradition with innovation to create ‘unnecessarily well-made whiskies.’ 

The Glenmorangie Private Edition Range

Glenmorangie’s Private Edition is an award-winning range that provides an annual opportunity for whisky connoisseurs and aficionados to experience a rare and intriguing single malt brought to life by the Glenmorangie Whisky Creation Team. Glenmorangie Companta marks the fifth annual release in this lauded range, which has included: 

Glenmorangie Sonnalta PX – IWSC 2010 Gold Medal

(Generous) A full bodied whisky, extra matured in Pedro Ximénez sherry casks. 

Glenmorangie Finealta – IWSC 2012 Gold Medal

(Elegant) An exquisite recreation of a 1900s recipe from our archives, with subtle notes of peat. 

Glenmorangie Artein- IWSC 2013 Gold Medal

(Stone) An outstandingly fragrant whisky extra matured in ‘Super Tuscan’ wine casks, influenced by the stony terroir. 

Glenmorangie Ealanta – IWSC 2013 Gold Medal

(Skilled & ingenious) A whisky fully matured in virgin American white oak casks with a provenance that stretches all the way to the mountains of Missouri and the Mark Twain National Forest. Ealanta has been named “World Whisky of the Year” in Jim Murray’s Whisky Bible 2014! Murray described Ealanta as “borderline perfection”. 

Kevin Mackintosh – Photographer

Renowned for his story telling through carefully crafted still imagery, Glenmorangie has once again collaborated with celebrated photographer Kevin Mackintosh to bring the Private Edition to life. 

Responsible Drinking

The Glenmorangie Company advocates responsible drinking and suggests that drinkers savour Glenmorangie whiskies in moderation and in line with recommended daily guidelines for alcohol consumption.