Jim Beam is looking to tap into the affordable luxury market as consumers continue to face economic strain and uncertainty. To do so, the Suntory brand is building off of its 2024 marketing strategy while heavily featuring Jim Beam Black, a 7-year-aged bourbon with an attainable price.
Jim Beam isn’t using Jim Beam Black to pivot the brand from an affordable, everyday bourbon to something more exclusive. Rather, the marketing aims to expand the brand’s consumer base and versatility. This includes a heavy emphasis on music and sports along with new product introductions. Also on tap are plans to build on the success of the brand’s 2024 “People are Good For You” campaign.
“It's a great proposition to allow consumers to experience that special expression of Jim Beam, while also helping us premiumize the overall portfolio and meet consumers who are looking for something that's a little longer aged and has a different liquid profile than our base business,” said John Alvarado, Suntory’s U.S. chief brands officer.
Priced at around $30, Jim Beam Black isn’t the most expensive bourbon on the market. However, at nearly double the price of Jim Beam’s base product, Jim Beam Black offers consumers an elevated spirit that doesn’t break the bank.
Suntory has invested heavily in Jim Beam Black after its relaunch in 2024. The brand kicked off an NFL-focused campaign in January with the release of its 7 Stages of Defeat care packages alongside actor and comedian Keegan-Michael Key. The care packages proved to be a success, with the first drop selling out in three minutes, the second drop in two minutes and the third drop selling out in 90 seconds, according to Alvarado.
“We aren't changing our focus as much as enhancing our offerings to help expand the overall appeal of the brand to consumers who are looking for that experience for certain moments that they're celebrating and sharing with friends and family,” said Alvarado.
Navigating uncertainty
While Jim Beam Black is intended to round out the brand’s portfolio, it also comes at a time when consumer preferences are changing. During COVID-19, the spirits business was booming. However, as the world opened back up, the industry saw a decline. Ongoing economic uncertainty means consumers are drinking less across the board.
“A few years ago, the bourbon industry couldn’t make enough; now, sales are dropping, and some producers are being forced to cut back operations and workforce,” said Albert Schmid, chef-instructor at the Auguste Escoffier School of Culinary Arts. “If sales continue to decrease there will most likely be continued cuts in the workforce.”
The American whiskey industry, which includes bourbon, saw a 2024 sales decline of 1.8%. Possible retaliatory tariffs on American whiskey from countries such as Canada could further impact the industry.
“If history is any guide, industry revenues will take a big hit from tariffs, seeing international sales of American spirits drop dramatically and the price of international spirits increase in the United States – but there are too many unknowns about the policies coming our way to be able to say what will happen. Right now, the only thing we can be certain of is uncertainty,” said Schmid.
Despite the uncertainty, Jim Beam is forging on. The brand is planning to continue its investment in sports and launched a pineapple-flavored bourbon in March. Digital and e-commerce are the engine powering the brand’s 2025 plans, Alvarado explained.
Specifically, Jim Beam’s 2025 strategy builds on the success digital-first activations found in 2024. For instance, during a football game between the Baltimore Ravens and the Kansas City Chiefs, the brand ran an advertisement with a QR code which took consumers to Instacart, leading to a 7.5% year-over-year sales increase. The activation also achieved a core goal of attracting new users to the brand.
“Digital is a core tenant of how consumers are engaging with brands, so we're continuing to increase our digital acceleration on Jim Beam at a level that's unprecedented for us,” said Alvarado.
