News Release

Suntory Wine International Limited Business Strategy for 2019

While the overall domestic wine market is estimated to have decreased in 2018, Suntory Wine International Limited showed positive trends exceeding the previous year, especially for Japan Wines like Tomi and Tomi no Oka as well as domestic casual wines  such as Sankaboshizai Mutenka no Oishii Wine and Delica Maison.
In 2019, we aim to continue expanding the business through various activities communicating the varied attractions of wine and grasping consumers’ diversifying palates. In order to bring consumers the best wine experience possible, we will actively develop value proposals relating to various methods of drinking wine, while continuing to focus on quality.

● Review of 2018
▼ Japan Wine
Sales volume for Japan Wine grew sharply, increasing 129% year-on-year. The flagship Japan Wine Tomi Red 2013 received the first ever Japanese wine (red) Trophy, the highest award in its division, and gold medal in the International Wine Challenge 2018, the world’s largest wine competition. We feel that our efforts in viticulture have been rewarded.

▼ Domestic Casual Wine
Sales volume for Domestic Casual Wine was 109% of the previous year. The top sales brand among Japanese wines^*1, Sankaboshizai Mutenka no Oishii Wine, and the first to break 1 million cases sold a year after its renewal in 2016, Delica Maison, both 1 million-sellers, were at the forefront of our new product introduction and renewal.

*1 According to Intage SRI. Sales volumes for Japanese wine from January to December 2017 (total of all Japanese SM/CVS/liquor DS/home centers/drugstores/liquor stores/commercial liquor stores)

▼ Imported wines
Sales volume for imported wine was 96% of the previous year. In the premium class^*2, we carried out active marketing for major brands such as William Fèvre and Laurent Perrier. In the standard class^*3, we launched new brands of European wine such as Les Ormes de Cambras, enhancing our product lineup.

*2 ￥1,200 or more per bottle.

*3 ￥600 to ￥1,200 per bottle.

● Strategy for 2019
▼ Japan Wine
With a focus on the Tomi no Oka Winery Series made 100% from our own grapes, we plan to continue improving the quality and value of our three Japan Wine lineup in cooperation with contract vineyards for the Shiojiri Winery Series and Japan Premium Series. The Tomi no Oka Winery will celebrate its 110th anniversary this year. In order to continue its run as a world-class winery, we will approach viticulture using only our own grapes and expressing the unique quality of the terroir.

▼ Domestic Casual Wine
Sankaboshizai Mutenka no Oishii Wine brand, boosted by the sales of Sankaboshizai Mutenka no Oishii Wine Strong (Red) from October 2018 on, will be further enhanced by sales of Strong (White) from February on. For the total brand sales, we will aim for 1.9 million cases, 102% year-on-year.
For the Delica Maison brand, we will actively work to create demand among 30s and 40s, aiming for 1.1 million cases, 108% year-on-year.
We will work actively to create new demand and generate new wine fans.

▼ Imported wines
We are looking forward to growth in the imported still wine market in particular, thanks to the Japan-EU EPA to come into effect in February. For the standard class^*3, the price range consumers find approachable, we plan to enhance our marketing for long-selling brand wines like Madonna and Mateus. Further, we will work to revitalize the market with sales of new products such as Vieux Papes France for the daily class^*4, while reducing the prices of some European wines in order to increase demand.

*4 Less than ￥600 per bottle