Fortune manages to keep spirits up

Written by Harpers Editorial team

Tuesday, 05 May 2009

Jim Beam owner Fortune Brands saw net sales drop by 20% in the first quarter of 2009, to $1.4 billion - but the spirits division buoyed the company's figures with a relatively modest fall of just 3%.

The group was hit by poor sales, adverse foreign exchange movements, a seasonal drop in demand, and charges for supply-chain initiatives.

Fortune's home products and hardware division took the brunt of the impact.

Chairman and chief executive Bruce Carbonari said: "Against the headwind of the global recession, the severe US housing downturn and reduced consumer discretionary spending, each of Fortune Brands' businesses performed at or above our expectations.

"Profits in our spirits business benefited from stable consumer demand, higher pricing, and favourable year-on-year US inventory movements, largely offset by soft results internationally, including the ongoing impact of the Australia RTD tax increase and unfavourable foreign exchange."

Like-for-like net sales were down 17% across the group.