Enjoy a 15% discount on all purchases until the 31st of March 2023 using the promo code EOFWEB22 at check out!

Drinks From coffee and kombucha to seltzer and champagne, we explore the latest insights on the consumer trends and new products shaping the drinks industry.

Suntory: IPO, Soaring Profits and Increasing Penetration of Southeast Asia - What’s Next?

Euromonitor International Profile Picture
Euromonitor International Bio

All the signs are that Suntory has ambitions to become a global player and so multinationals like PepsiCo and Coca-Cola may need to watch out. Suntory Beverage & Food Ltd is in the midst of an exciting and eventful year. In April, the company reorganised its management structure and established a Business Planning Department. In July, it started trading on the Tokyo Stock Exchange and saw its share price exceed the offer price. In August, the company reported strong financial results, with all-important overseas profits up by 15%. These good results reportedly reflect  cost-cutting measures and a weaker Japanese yen, which helped to boost overseas trade.

Suntory Holdings, which continues to hold a 60% stake in Suntory Beverage & Food Ltd, said the IPO raised around US$3.9 billion, which will be used to fund overseas acquisitions. While the parent company remains privately-owned, the IPO means that the reporting of the beverage and foods business will have to become more transparent, leading to a change in the culture and mindset of one of Japan’s oldest food and beverage companies.

In terms of retail value sales of soft drinks, Suntory’s overseas operations grew in importance, increasing its share of the company’s overall sales by two percentage points over 2010-2012. Sales at its Australasian subsidiary Frucor outpaced those of its European subsidiary, with both regions largely impacted by local economic conditions. The company is determined to leverage its acquired networks to make its brands international and then global. The successful introduction of Orangina juice-based carbonates in Japan is particularly encouraging, highlighting the fact that opportunities do still exist in the company’s saturated home market.


The North American and Latin American markets remain the company’s weak spots. Given North America’s maturity and crowded marketplace, Suntory has yet to announce any major entry plan. However, this does not necessarily mean that the company intends to avoid the lucrative and still growing US RTD tea category. If it is adventurous enough, Suntory could consider acquiring premium RTD tea brand Arizona, thus assuming category leadership immediately. Suntory also expressed an interest in Latin America when reorganising the company. Euromonitor International believes that Kirin’s expansion in Brazil and the country’s forthcoming sports events will continue to appeal to Japanese companies’ growth ambitions.

Interested in more insights? Subscribe to our content

Latest Insights

Three Challenges To Delivering Consumer Need States

Shane MacGuill 24 February 2023

NCA Annual Convention

Euromonitor International 19 January 2023

Shop Our Reports

Tea in Middle East and Africa

Tea has continued to record positive growth rates in volume terms in recent years, but has also seen declining sales in real value terms in Middle East and…

View Report

Juice in Asia Pacific

Health concerns are influencing the performances of the various juice products across Asia Pacific, with NFC 100% juice, for example, seeing dynamic growth in a…

View Report

Coffee in Asia Pacific

Per capita consumption of coffee in Asia Pacific is the lowest in the world, and is growing only slowly, as the dominant instant coffee category is mature.…

View Report
Passport Our premier global market research database with detailed data and analysis on industries, companies, economies and consumers. Track existing and future opportunities to support critical decision-making across all functions within your organisation Learn More