Suntory spirits sales fall in 2025 as demand drops
Japanese drinks group Suntory reported a 0.4% drop in alcohol sales last year due to a decline for spirits and a consumption slowdown in the US and Europe.
Suntory, which owns Jim Beam Bourbon and Sipsmith gin, reported total revenue (including liquor tax) of ¥3.43 billion (US$22.33bn) – an increase of 0.4%. The company was boosted by an increase in its beverages and food segment (up 2%), its biggest division, which includes soft drinks.
However, its alcohol business was stagnant (down by 0.4%) to ¥1.38bn (US$8.98bn) last year. In the first half of 2025, Suntory reported a sales decline of 2.4% for its alcohol arm.
Suntory said its alcohol revenue was impacted by a ‘challenging external environment’ and a slowdown in its major international markets, alongside the billion-dollar sale of Cognac brand Courvoisier to Campari Group in 2024.
Nobuhiro Torii, who became Suntory Holdings’ president and CEO in September after Takeshi Niinami’s sudden resignation, said: “In 2025, markets around the world experienced slowdowns, which resulted in a challenging business environment for many of our regions and businesses.
“Japan was no exception, with a historically weak yen and sharp price increases weighing on the market.”
The sale of Courvoisier also partially affected Suntory’s operating income, which plunged by 42.9% to ¥103.1bn (US$671.3bn) last year.
Torii also attributed the operating income loss to lower alcohol profits from “sluggish” growth in Europe and the US, alongside “weaker” results for the group’s beverages and food division in Thailand and Vietnam.
Newly appointed president Eiichiro Nishida will manage the domestic alcohol business and help the company reach its goal of ¥1 trillion in revenue by 2030. Torii also revealed there will be a new leader for the RTD business.
Spirits sales down as beer and wine rise
The Laphroaig owner noted that its spirits sales (including liquor tax) declined last year. However, it did not disclose by how much.
The group said its spirits subsidiary – known as Suntory Global Spirits – was hindered by a ‘slowdown in consumption caused by economic uncertainty’ in the US and Europe, as well as the Courvoisier divestment.
However, spirits grew in the group’s key markets of Japan, India, China and global travel retail, Suntory highlighted.
Japanese whiskies such as Yamazaki, Hibiki, Kakubin, and Toki, as well as Indian-made foreign liquor brand Oaksmith, delivered ‘strong growth’ year on year.
Suntory also claimed its flagship Bourbon brands, Jim Beam and Maker’s Mark, ‘outperformed’ the American whiskey sector in the US despite category headwinds, based on Nielsen figures to 27 December 2025. But it did not detail whether the brands increased their sales last year.
In December, Suntory announced it would pause production at its main distillery on the James B Beam campus in Kentucky until the end of 2026, which it said would enable it to carry out site improvements.
The group also cited ‘strong growth’ for Japanese gin Roku and its ready-to-drink (RTD) brands, -196 and On The Rocks. In February last year, the company invested ¥6.5bn (US$42.8m) into the production plant where Roku is made in Osaka, Japan.
In the US, which Suntory described as the world’s biggest RTD market, category growth was led by the nationwide expansion and flavour launches of -196, and the launch of a canned format for bottled cocktail range On The Rocks.
The -196 Sugar-free series posted double-digit volume growth last year in its home market of Japan.
Suntory’s portfolio also includes Tequila brands Tres Generaciones, Hornitos and Sauza. The group did not mention the performance of its agave spirits.
Despite an undisclosed decline for spirits, the group noted growth for both its wine and beer businesses, which each rose by 2%.
Regarding its non-alcoholic drinks sales, Suntory said it had created a department for the category in Japan in January 2025 to ‘strengthen’ its position. In July last year, Suntory launched Zeroppa, a non-alcoholic cocktail base for the on-trade in Japan. Approximately 5,000 accounts have confirmed their plans to carry the product.
Forecast for 2026
In its forecast for the year ahead, Suntory said it aims to become the ‘world’s most admired premium spirits company’ by focusing on ‘craftsmanship and product quality, further strengthening global brand recognition, and solidifying its position in the global spirits market’.
For its whisky portfolio, Suntory said it would ‘advance’ its marketing activities, including through sports partnerships, and launch new flavours and products. It also plans to focus on ‘global priority brands’ such as Jim Beam, Maker’s Mark and Hibiki.
In Japan, Suntory will focus on enhancing its Japanese whiskies, such as Kakubin and Yamazaki, through Highball activities. It also intends to boost its Japanese gins Roku and Sui in the market through new food pairing experiences.
In its outlook for 2026, Suntory expects total group revenue to rise by 4.3% to ¥3.58bn (US$23.3bn) and operating income to soar by 26.2% to ¥280bn.
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