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Suntory: ‘Huge opportunity’ to boost white spirits
The House of Suntory is aiming to drive its Japanese vodka and gin brands globally after seeing double-digit growth in 2023.
Haku Vodka and Roku Gin rose by double digits last year, according to Masaki ‘Mory’ Morimoto, president of Suntory Spirits Japan and the House of Suntory.
“Regarding our white spirits, Roku and Haku, our House of Suntory brand house is promoting these brands for our future,” he explained, adding that the House of Suntory business has typically focused on whisky. “Our business relies on whisky, so we would like our white spirits brands to be developed globally.”
He continued: “We are seeing Japanese whisky booming fast, but there’s huge opportunity to build a very strong white spirit brand globally.
“Consumers are very interested in Japanese products, which are inspired by Japanese craftsmanship and inspiration. We call it the monozukuri concept. I believe we can develop a new demand for Japanese spirits brands.”
‘Monozukuri’ is a Japanese word that translates to ‘the making of things’ but is used to refer to handmade products or craftsmanship.
Suntory launched Japanese gin Roku in international markets in September 2017. Morimoto said its launch marked the first collaboration between Suntory’s Japan and international teams.
Bottled at 43% ABV, Roku – meaning ‘six’ in Japanese – contains six local botanicals, including sakura flower, sakura leaf, yuzu peel, sencha tea, gyokuro tea and sansho pepper, along with eight other botanicals traditionally used in gin.
Meanwhile, Japanese rice-based vodka Haku was launched in the US a year after Roku’s global debut.
Morimoto describes Roku as the company’s number-two premium gin brand. The group also owns London-based gin Sipsmith, which it acquired in 2016.
In January this year, Roku released a gin inspired by Japan’s cherry blossom season as the first release in the brand’s Festival Collection.
Morimoto highlighted Hendrick’s as a brand whose activity it keeps an eye on. “In the premium and super-premium gin category, we respect Hendrick’s and are monitoring the brand, its marketing activity, and innovation. We can learn a lot from this great brand.”
The House of Suntory is no stranger to celebrity marketing campaigns, with the brand recently partnering with actor Elle Fanning and filmmaker Sofia Coppola on a new campaign for Roku.
Last year, Coppola also worked with the House of Suntory on a campaign to celebrate its 100th anniversary, which starred The Matrix actor Keanu Reeves.
The company is also working on the launch of a new spirits brand from House of Suntory, but details are currently under wraps.
Market potential
The US is the group’s biggest market, which Morimoto describes as a “huge cocktail market” alongside Europe and Australia.
He said the group is aiming to expand its sales in emerging markets such as India, Brazil and Mexico, as well as global travel retail. “In emerging markets, our focus is more on Japanese whisky and local gin,” he adds.
Morimoto also highlighted Australia as the biggest global market for the ready-to-drink (RTD) category, where the group has launched Japanese RTD -196, which is the fifth-biggest-selling spirit brand in the world. The company has also brought the RTD to Asian countries and more recently, the UK.
He noted the high amount of competition in the Australian RTD market. “We have to launch and build our business there,” he said, adding that the company is looking to develop new RTDs for Australia. “We can afford to expand our RTD business through innovation.”
Suntory Global Spirits (formerly Beam Suntory) also noted double-digit gains for its Japanese whiskies in 2023, after seeing total full-year net sales grow by 7%.
Morimoto attributed the House of Suntory’s double-digit growth to 100th-anniversary releases for Hibiki, Yamazaki and Hakushu.
“Outside of our luxury whisky portfolio, we are promoting Kakubin in the Asia region and Toki in Asia, Europe and the US,” he added.
Moromito called the UK a “very critical” market for promoting its high-end whiskies.
In the market, the group will also focus on premium SKUs, Roku and Haku. “To be successful in the UK will be a great opportunity for our brands. We want to get a higher reputation in the UK.”
Suntory recently established an Indian subsidiary to accelerate spirits growth and enhance its presence in the market.
“Demographic-wise, we must win in India and also our competitors already have very strong business foundations in the Indian market,” he said.
Morimoto expects the company to “expand and see higher growth” in India, which he called a “big whisky market” and “critical” to the business.
Quality before supply
In 2023, the company announced a ¥10 billion (US$77 million) investment in Yamazaki and Hakushu that included upgrading the visitor centres and installing floor maltings at both distilleries.
“We are operating our distilleries at full capacity over 10 years, and we spent big money to build new facilities and warehouse,” Morimoto explained.
However, he warned that the company “cannot catch up with demand for Japanese whisky in global markets”.
Morimoto continued: “We want to supply big volume to global markets but we have to ensure quality first. Our production policy is to realise best quality globally, and to ensure reliable quality for consumers. We conduct sizeable investment continuously so we can supply enough volume to meet global demand.”
Earlier this year, the House of Suntory confirmed all of its exported Japanese whiskies are 100% distilled, matured and bottled in Japan.
The move was made to ensure it was compliant with the Japan Spirits & Liqueurs Makers Association’s (JSLMA) voluntary labelling standards for Japanese whisky.
Morimoto, who is also chair of the JSLMA, said: “We have to promote these guidelines to maintain Japanese whisky’s reputation and prepare clear guidelines for consumers. In the past five to 10 years, we have seen very strong Japanese whisky momentum globally. There are so many Japanese products that cannot meet these guidelines.”
He hopes that the standards will help consumers to differentiate between fake brands and genuine Japanese whiskies.
“We need some time to deliver this guideline globally. In every consumer touchpoint, we have to make efforts to deliver these guidelines,” he said, adding that the company will look to provide point-of-sale tools in off-premise accounts.
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