At present, we think of all our businesses as core. Since our establishment in 1899, we have maintained our ‘spirit of challenge’ while breaking into many different markets. At present, alongside our alcoholic beverage and food products businesses, we also work in the health foods, restaurant and flower markets. We have also established multiple businesses overseas, in China, South East Asia, America and Europe.
What are the strengths of Suntory in comparison with rival companies?
Ever since our establishment, our corporate approach has been based on our ‘spirit of challenge’, and this enterprising approach to business is one of our key strengths, alongside our uniquely comprehensive line-up of core brands, including alcoholic beverages (beer, Western spirits, shochu, low-alcohol drinks, wine), food products (soft drinks, health foods), and non-Japanese brands.
What is the difference between Suntory and Suntory Foods?
Suntory Foods Ltd. is responsible for the sales side of Suntory’s soft drinks business. Product development and advertising for Suntory’s food business is carried out by Suntory Foods International Ltd. Suntory Foods Ltd. runs its own, independent Careers program.
How do you plan to expand your alcoholic beverages business?
Suntory began by producing Akadama Port Wine, a sweet-tasting fruit wine, and was central in introducing Japan to Western spirits. We were also the first company in Japan to produce and sell whisky. Today, Suntory produces and sells a variety of alcoholic beverages, including beer, whisky, shochu, chu-hi, liqueur and wine. We are in an unrivalled position as a manufacturer and supplier of an almost complete range of alcoholic beverages in Japan. Suntory is also aggressively expanding overseas, with businesses concentrating on beer and Western spirits in China, on wine and whisky exports in Europe, and on multiple types of alcoholic beverage in America, Australia, Russia and Taiwan.
How do you plan to expand your food products business?
Suntory’s food products business boasts an impressive line-up of soft drinks, including green tea, oolong tea, coffee, carbonated drinks and mineral water. In addition, we have also established a health food products business that makes use of our many years of research into food science and biotechnology. In Europe, we operate the manufacturing and sales of soft drinks, and in America we manufacture and sell the Pepsi brand. In Asia and Oceania, we concentrate on soft drinks and the food products business. We are committed to strong expansion in every region of the world where we have a presence. In Japan, we are also now manufacturing and selling the super premium ice-cream brand Haagen-Dazs, as well as developing Haagen-Dazs retail shops throughout the country.
How do you plan to expand your health food products business?
As general consumer awareness and interest in health and wellbeing grows, Suntory has begun to apply the findings from its food science and biotechnology research to support its entry into the health and life science markets. In 1993, Suntory launched Sesamin, a sesame-based health food product, and in 1999, a Health Foods Business Department was newly established, allowing the company to begin to concentrate on the development of health food products using ingredients and scientific know-how unique to Suntory. In 2001, Suntory launched the Power of Nature product series, based on the research findings of the Health Science Institute, a facility established to reinforce the research and development infrastructure in place for health-related products. Products designed to meet the needs of health-conscious customers, such as the Sesamin series, Arabita, Glucosamine & Condoroichin, Black Vinegar & Garlic, Aojiru and Maca & Ophiocordyceps sinensis supplements are sold via online and mail-order channels. These products are designed to support the day-to-day wellbeing of our customers, through clearly documented scientific evidence and stringent quality control. These are the distinguishing features of Suntory’s health food products.
How do you plan to expand your overseas businesses?
Suntory’s overseas businesses can be broadly divided into soft drinks and processed foods businesses (food products business) and businesses dealing with scotch, brandy, beers and wine (alcoholic beverages business).
[Food Product Business] Suntory is dedicated to strong development of its food products business overseas. Suntory first launched a business venture in the US in 1980, in the soft drinks market. Today, Suntory runs Pepsi Bottling Ventures LLC, which manufactures and sells the Pepsi brand. In addition to carbonated drinks, Suntory has expanded the range of non-carbonated drinks available, in response to the health needs and awareness of consumers. The business is showing steady and healthy growth. In 1990, Suntory acquired Cerebos Pacific Ltd., a company based in Singapore. Through this company, Suntory is able to contribute to the health and wellbeing of people throughout Asia, via BRAND’S products such as the well-known Essence of Chicken supplement. In China, Suntory established a joint venture company in 1995, initially concentrating on soft drinks (today known as Suntory (Shanghai) Foods Marketing Co., Ltd.). The core product chosen for this market was Suntory Oolong Tea, and this was at the forefront of the business as it expanded to Shanghai, a city of phenomenal growth, and, from 2003, Beijing. Today, Suntory is a market leader in the drinks market in a wide range of categories. In 2007, Suntory acquired capital in Tipco F&B Co., Ltd., based in Bangkok, Thailand. Together, we have worked to strengthen the Tipco brand, the leader of the fruit drinks market in Thailand. Suntory has now taken over the manufacturing and sales of Tipco branded products, and is working with Tipco F&B to develop the soft drinks market through South East Asia. Most recently, Suntory has acquired the Frucor Group, a soft drinks manufacturer based in New Zealand, and the Orangina Schweppes Group, a French soft drinks manufacturer. These acquisitions will help Suntory to continue to grow and expand on a global level as we move into the future.
[Alcoholic Beverages Business] Suntory has a formidable business network encompassing leading alcoholic beverage manufacturers throughout the world. We also work jointly with overseas distilleries and wineries, in order to nurture and develop leading alcohol brands. In Scotland, we are involved at the managerial level with Morrison Bowmore Distillers, Limited, and have developed an aggressive marketing policy for the Bowmore brand of single malt whisky. The Bowmore brand has won a number of international awards, and is globally recognised as an outstanding blend. In France, we work with Louis Royer S.A.S., France’s quintessential cognac producer, to take the Louis Royer brand to China, America and Russia. In the wine market, we are closely involved in the management of leading wineries, such as Chateau Lagrange and Chateau Beychevelle in Franc, and Weingut Robert Weil in the Rheingau region of Germany. Finally, we also have production sides for Midori, one of Japan’s classic liqueurs, in Mexico and France. Sales of Midori have been expanded as far as Australia, Europe and Asia, and the global brand of Midori continues to go from strength to strength. In China, Suntory, as a foreign investor, established the first joint venture beer production company in China, in 1984, in Lianyungang in Jiangsu province. Named the China Jiangsu Suntory Foods Co., Ltd., it marked the first inroads for Suntory into the Chinese beer market. This Jiangsu-based beer production and sales operation allowed Suntory to build up valuable know-how for conducting business in China. This experience was then applied to the establishment of a beer company in Shanghai, China’s most rapidly expanding city. In 1995, the Shanghai Suntory Brewing Co., Ltd. (today, Suntory Brewing (Shanghai) Co., Ltd.) was established, and two products were launched in 1996: Suntory Gold and Suntory White. A bold, large-scale marketing campaign, featuring images of an airplane of billboards and TV commercials, marked the launch. The campaign, together with a crisp, clear taste developed to meet the taste of the Shanghai beer-drinking consumers, and a tailored approach to sales and distribution, meant that Suntory beer quickly rose through the ranks of the beer market in Shanghai. Suntory’s later achievements in Shangai include the manufacturing and sales of the first draft beer in the Shanghai area and the acquisition of local producers, including East Sea Beer and Shanghai Fosters. Today, Suntory’s share of the beer market in the Shanghai area is around 50%. Now, the business is being expanded to larger cities in the Shanghai area, such as Suzhou and Wuxi, and Suntory is progressing well in its plans for further expansion into the Chinese beer market. Suntory is working with the local community, through businesses rooted in the host region, to ensure that business expansion in China continues with stability.
