Suntory aims to reach sales of £23bn by 2020

Japanese drinks group Suntory Holdings believes its sales could double to reach more than £23 billion by 2020 following its acquisition of Beam Inc this year.

Suntory will aim to double its sales to more than £23 billion by 2020 following the creation of Beam Suntory Inc

According to Reuters, Nobutada Saji, president of Suntory, said that about a quarter of this amount, £5.75 billion, will come from its new US-based subsidiary Beam Suntory Inc.

Suntory acquired Beam for US$16 billion in January this year, making it the third biggest drinks group behind the UK’s Diageo and France’s Pernod Ricard.

Once the deal was finalised, Suntory revealed that it’s own spirits portfolio would join that of Beam in the newly created Beam Suntory Inc.

However, Saji claimed that reaching the desired sales of £23 billion by 2020 would require further acquisitions.

Reuters added that Suntory would raise 300 billion yen (£1.7 billion) in subordinated loans and 500 billion yen (£3 billion) through long-term borrowing or bond issuance to finance the acquisition of Beam.