Suntory creates AU$3bn Oceania arm

Beam Suntory and Frucor Suntory will form a AU$3 billion (US$1.96bn) spirits and no-alcohol venture in Australia and New Zealand.

Suntory’s spirits arm, Beam Suntory, and its Frucor soft drinks division have partnered to launch Suntory Oceania.

The collaboration will see the creation of the fourth-largest ANZ (Australia and New Zealand) beverage group in Oceania, the Japanese conglomerate said.

Mark Hill, managing director of Beam Suntory Oceania, said: “This collaboration demonstrates our belief in the growth potential of the Australian and New Zealand markets. When other businesses are pulling back, we are forging ahead, bringing Suntory’s spirit of bold ambition to life.”

The new venture will mean end-to-end control of Suntory’s portfolio in the markets, including manufacturing, sales, and distribution. The company will continue to work with Coca-Cola Europacific Partners in the region until 2025.

“With Suntory Oceania, we are looking to the future with optimism and a wholly owned platform from which to build the long-term growth of our brands for years to come,” Hill explained. “It is the perfect opportunity for us to build upon the strength of Suntory as the global leader across the beverage sector.”

Suntory Oceania’s portfolio will include Jim Beam, Maker’s Mark Bourbon, Japanese whisky Hibiki, Canadian Club whisky, and ready-to-drink brand -196, alongside soft drinks such as V Energy, Maximus, and Suntory Boss Coffee.

Frucor Suntory CEO Darren Fullerton added: “With the ability to accelerate our growth trajectory, we strongly believe it will redefine market dynamics and offer more consumer beverage moments from sunrise to sunset, unlocking innovation for our customers across retail and hospitality industries.”

New AU$400m net-zero site

Furthermore, the group will construct a AU$400 million (US$260.8m) net-zero facility in Ipswich, Queensland, said to be the ‘largest’ investment in the fast-moving consumer goods (FMCG) space in Australia in more than a decade.

The new site will become home to additional beverage processing, packaging, warehousing, and distribution, complementing the group’s current manufacturing site in Auckland.

The Queensland facility is expected to be in operation by mid-2024 with the ability to produce 20m cases initially and more than 50m cases in the future.

Fullerton added: “The new site sets the industry standard in terms of investment into sustainable technologies to drive efficiency and minimise our carbon footprint.

“We are looking at a multi-pronged strategy through a CleanCo solar power purchase agreement, over 14km of solar panels on site, biomass boiler and state-of-the-art production equipment.”

Suntory will also hire more than 400 workers as the new venture becomes operational from mid-2025 in Australia, and from 2026 in New Zealand.

Beam Suntory saw net sales increase by 10.5% in 2022, with double-digit growth in Oceania.