Suntory Holdings reports modest sales growth amid challenging market conditions
JAPAN – Suntory Holdings has reported a 1 percent year-on-year increase in sales from its alcohol businesses, reaching JPY1,055.7 billion (US$6.87 billion) for the fiscal year 2023.
The company attributed the performance to a strong first half, which saw a 3.5 percent rise in sales, despite economic headwinds and changing consumer demographics.
The company’s total revenue, including liquor tax, grew by 4.0 percent to JPY3,417.9 billion (US$22.5B), while operating income increased by 3.7 percent year-on-year to JPY328.9 billion (US$2.17B).
Across Suntory’s alcohol divisions, sales rose by a combined 11.8 percent for the full year.
Suntory recorded single-digit sales growth for its Jim Beam bourbon and Roku Japanese gin brands, while its Hibiki and Yamazaki Japanese whisky lines posted double-digit increases.
The company’s spirits-based ready-to-drink (RTD) offerings, identified as a key strategic segment, also experienced strong performance, with On The Rocks and -196 achieving double-digit and high-single-digit growth in value terms, respectively.
While sales in North America and other international markets faced challenges, the company highlighted strong momentum in the Asia-Pacific region.
South Korea and Japan drove growth in the segment, with Suntory expanding its presence in Western-style liquor culture, particularly in whisky and gin.
In the domestic beer market, Suntory’s sales volume declined by 3 percent compared to the previous year. However, the company’s newly launched Suntory Draft Beer brand saw a significant 57 percent year-on-year increase in sales volume.
Suntory reaffirmed its commitment to becoming a leader in the RTD category, which it views as a key area for global expansion.
The company announced a new partnership in Oceania between Suntory Global Spirits, which handles alcoholic beverages, and Suntory Beverage & Food, responsible for soft drinks. The new operational structure is set to launch in July 2024.
Looking ahead, Suntory aims to maintain its growth trajectory under its “ONE SUNTORY, One Family” strategy.
However, the company anticipates a 5.8 percent year-on-year decline in operating income to JPY310 billion (US$2.04B) in 2025 due to the impact of recent business divestitures.
Despite this forecast, Suntory remains focused on sustaining its competitive position in the global beverage industry.
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