Suntory spirits sales down in H1
Japanese drinks group Suntory has reported a first-half sales decline of 2.4% for its alcohol business after demand dropped in the US and Europe.
Revenue excluding liquor tax for the group’s alcoholic beverages segment fell by 2.4% to ¥491.6 billion (US$3.3bn) during the first half (H1) of 2025.
Including liquor tax, the division was down by 1.8% to ¥652.5bn (US$4.42bn).
Jim Beam maker Suntory noted that the H1 sales drop was due to a ‘challenging external environment’, including market downturns caused by economic uncertainties in key international regions. It also highlighted the impact of currency fluctuations.
Operating income for H1 plunged by 32.9% to ¥71.6bn (US$486 million), which Suntory said was partly due to the absence of sales of an affiliated company that was recorded in the previous fiscal year.
Suntory’s spirits sales declined (both including and excluding liquor taxes) in H1 but the group did not disclose by how much. Suntory explained that spirits were down due to a consumption slowdown in the US and Europe, offset by markets such as Japan, China, India and travel retail, which helped drive sales.
In terms of brands, growth was led by Japanese whiskies including Yamazaki, Hibiki, and Toki, as well as Japanese gin Roku, ready-to-drink (RTD) brands -196 and On The Rocks, and Indian whisky Oaksmith.
In Japan, sales volumes of the Kakubin whisky brand also increased year on year.
Roku’s volumes rose by double digits in Japan, driven by ‘strengthened’ marketing activities.
Gin and RTD investments
In February this year, the company invested ¥6.5bn (US$42.8m) into the production plant where Roku is made in Osaka, Japan. The site started operating in June and will help to bolster Roku’s position in the gin market in Japan and expand production.
The group also saw a double-digit gain for its sugar-free -196 RTD range in Japan. Suntory said it had continued its efforts to strengthen the RTD segment, and in the US, it introduced new variants for -196 and On The Rocks.
“Overseas, we focused on attracting new customers in the United States, which is the largest RTD market by expanding the distribution of ‐196 nationwide and launching new flavours, and introducing canned products for the On The Rocks brand,” said Masato Arishiro, managing executive officer of Suntory Holdings.
“In Australia, we began shipping RTDs in July at the Swanbank beverage facility, which was built through a partnership between our alcoholic beverages and soft drinks businesses.”
In September 2024, production began at Suntory Oceania’s AU$400m (US$260.8m) manufacturing facility in Australia, which makes the company’s RTD brands.
Suntory noted that its beer business was on par with last year, while its wine revenue rose by 3% (excluding liquor tax) in H1.
Suntory’s total group sales for H1 fell by 1.9% including liquor tax, and by 2.2% without tax. Operating income plummeted by 30.6%.
For 2024, the group reported a full-year sales rise of 1.1% (including liquor tax) for its alcohol division, with an increase for spirits. Growth was led by the group’s whisky brands including Jim Beam Bourbon, Oaksmith, Yamazaki and Hibiki.
For the full year ending 31 December 2025, Suntory expects revenue to rise by 4.2% and operating income to be down by 5.8%.
Last year, the company’s spirits arm changed its name from Beam Suntory to Suntory Global Spirits.
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