Jim Beam acquired by a major Japanese spirits company is turning the heads of whiskey drinkers this week, as Jim Beam and Maker’s Mark have officially agreed to be “bought” in a massive $13.6 billion deal. In the process, this deal will spark the third largest worldwide premium spirits business, and seems to be turning these craftsmen of the classic American bourbons and whiskeys under overseas assistance and partial direction. The NZ Herald News tells what’s known on this noteworthy arrangement this Monday, Jan. 13, 2014.
Having Jim Beam acquired by a popular Japanese beverage company — Suntory Holdings, Ltd. — incited overall shares of Beam Inc. to rise a swift 24 percent this Monday once the $13.6 billion deal had been announced. Under the merging of these alcohol retailers, estimated combined company values in terms of annual sales would hold over $4.3 billion per year.
This decision comes at a period in our new year when the general public taste for bourbon — a unique style of American whiskey that is mostly made from corn then distilled in several states like Kentucky — is seeing a considerable rise in esteem and popularity. The decision of Japanese company Suntory to acquire Jim Bean is said to “fit the growing demand for bourbon both domestically (here in the U.S.) and abroad.”
According to the press release on the buying of this traditional American whiskey maker, it is this gradual increase that encouraged the buyout.
“In the U.S., sales volume for bourbon and Tennessee whiskeys such as Jack Daniels has grown 26 per cent over the past decade, according to the Distilled Spirits Council, and industry group. Exports of US whiskeys has grown to roughly $1 billion last year, more than double what it was a decade ago. Demand is so robust that Beam last year even considered reducing the alcohol content for Maker's Mark because of a supply shortage. The company scrapped the idea after a backlash by fans of the higher-end bourbon.”
"We're basically in the middle of a global whiskey renaissance," said Frank Coleman in a statement on having Jim Beam acquired by Suntory. He serves as spokesman for the Distilled Spirits Council.
Both Jim Beam and Suntory have had a strong business relationship in the past, with Suntory helping to distribute Beam products among its other spirits with a variety of whiskies. In turn, Beam helps distributes Suntory’s products to both local and international Asian markets.
Fortunately, the taste, quality, and management of Beam is not expected to change with the multi-billion dollar deal.
“Beam spokesman Clarkson Hine said that for now, the deal will result in few changes for fans of Beam's bourbons. He also said that Beam, which was spun off as a stand-alone liquor company in 2011 from conglomerate Fortune Brands Inc., will continue with its current management.”