New
Name, New Look For Jim Beam Brands
CHICAGO
(Dow Jones)
-- Flush with a portfolio of new tipples
and leaving an increasingly large global
footprint, Jim Beam Brands has given itself
the corporate equivalent of a makeover,
dropping its first name to emphasize the
new, more worldwide nature of its business.
While
it won't be formally announced until Monday,
the unit of Fortune Brands (FO)(FO)
is now operating under the "Beam Global
Wine & Spirits" moniker. The change
was sparked in large part by its $5 billion
acquisition of a stable of top-shelf liquor
and wine in the breakup and sell-off of
Allied Domecq last year. That deal brought
the company Sauza tequila, Courvoisier cognac,
Canadian Club whisky and a raft of new wines,
among other beverages.
Pernod
Ricard of France got the rest of the Allied
Domecq brands, with the exception of Bushmills,
which went to Diageo (DEO)
(DEO)
.
More
to the point, though, the Deerfield, Ill.-based
Beam more than doubled the size of its top
line to $2.5 billion, added a couple thousand
employees spread from Scotland to Mexico
to France -- and cut the percentage of sales
generated in the U.S. from 75% to about
half. The purchase also lifted Beam from
No. 7 to No. 4 among global spirits companies
and raised its contribution to parent Fortune
Brands (FO)
from 30% of operating income to 45% of operating
income.
The
new name is one way to bring together the
company's widely disparate workers -- from
the expert cognac taster to the employee
who sweeps up at the tequila factory, said
Beam Chief Executive Tom Flocco.
"We
want to get them all aligned with a common
purpose," he said. The company needed
an identity to reflect the recent changes
"while acknowledging the heritage upon
which we are built."
Jim
Beam may be in a league with a Colonel Sanders
or Ben & Jerry here in the U.S., but
the name loses resonance in far-flung parts
of the world. Fortunately, as Flocco pointed
out, the legendary distiller's last name
is pretty adaptable.
"It's
a name that works because it does have a
lot of flexibility inherent in it,"
he said, noting that it could also refer
to a beam of light, a balance beam, a support
beam or even the beam of a ship.
"It
has the multiple entendre, but it also ties
back to a 200-year-old history," Flocco
said. "We didn't want to completely
sever our ties with the past."
The
eponymous bourbon, still the company's biggest
single brand, will keep its full name, and
the new corporate identity won't be appearing
on a bottle anytime soon -- with the exception
of commemorative liters of Jim Beam Black
handed out to each of the company's 4,000-plus
employees.
"The change is not as relevant to consumers
as it is to our employees, distributors
and retailers," he said. "We don't
get any benefit from putting Beam on the
back of bottle of Sauza."
Along
with the new name comes a new logo, a stylized
"B" outlined against a red quality
seal or hallmark. The logo is designed to
represent the company's flagship brand and
legacy along with the craftsmanship that
goes into the products.
But
Flocco added that that after the logo was
set, he noticed something else about it:
"It could be a coaster."
Copyright
© 2006 Dow Jones & Company, Inc.
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