Suntory Beverage & Food

Basic Information

Stock Code
2587
Industry
Food
Category Detail
Beverages, Tobacco & Luxury Foods
Prefecture
Tokyo
Establishment Year
January 2009
Listing Year
July 2013
Official Website
https://www.suntory.co.jp/softdrink/
TSE Information
TSE Information
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Other Companies
Asahi, Kirin HD, Hokkaido Coca-Cola Bottling, Coca BJH, Life Drink Company, Fruta Fruta, Dydo Group Holdings, Ito En, Key Coffee, Kagome

Overview

Suntory Beverage & Food is a major soft drink industry leader founded in 2009, with strong sales networks domestically and internationally, and is an innovative company deploying a diverse range of brands.

Current Situation

For the fiscal year ending December 2023, consolidated sales were approximately 1.5917 trillion yen, with operating profit of about 141.7 billion yen, maintaining solid management. In the domestic market, it holds stable shares in canned coffee and tea beverages, and is actively expanding overseas. The product portfolio is diverse, ranging from proprietary brands to licensed brands, and it is strengthening corporate vending machine services. In recent years, it has focused investments on digitalization and new services, as well as actively pursuing sustainable packaging development and regional contribution activities. Toward 2030, it is deepening growth strategies domestically and internationally, promoting new product development and marketing enhancements. It offers advanced solutions such as corporate light meal vending machines 'Bosmart' and heatstroke prevention vending machines 'DAKARA Hydration Station.' Major brands include 'BOSS,' 'Iyemon,' 'Pepsi-Cola,' etc., differentiating from competitors. Management is implementing innovative operations for sustainable growth, establishing a unique position in the industry.

Trivia

Interesting Facts

  • Suntory Beverage & Food is a subsidiary of the Suntory Group handling the soft drink business.
  • The 'BOSS' brand is a representative canned coffee with extremely high recognition domestically and internationally.
  • The 'President's Treat Vending Machine' was developed to activate communication among employees.
  • Acquired beverage vending operator business and brands 'Peach Natural Water' and 'Roots' from JT.
  • 'Oronjina' is a brand originating from French Schweppes, launched in Japan in 2012.
  • 'Iyemon' has strong support in the domestic tea beverage market as a Japanese tea brand.
  • Corporate light meal vending machine 'Bosmart' is Japan's first light meal sales system via vending machines.
  • Heatstroke prevention vending machine 'DAKARA Hydration Station' provides free beverages via dedicated cards, contributing to society.
  • The 'Pepsi-Cola' brand is manufactured and sold in collaboration with Pepsi Bottling Ventures in Japan.
  • 'Suntory Natural Water' has a long history as a mainstay domestic mineral water brand.
  • Management has appointed a female president, pioneering diversity promotion.
  • Corporate vending machine services introduced to over 360 companies nationwide.
  • Domestic vending machine operator business boasts top-class market share.
  • Actively expanding products overseas with multi-language support.
  • Advancing sustainability management and receiving high evaluations from investors.

Hidden Connections

  • Suntory's soft drink business is strengthening collaboration through joint ventures with Pepsi-Cola.
  • Acquired 3 beverage subsidiaries and 2 brands from JT to expand business.
  • Deploys multiple products exclusively for Seven & i Group stores.
  • Brands 'Roots' and 'Peach Natural Water' transferred from JT and independently developed.
  • Vending machine technology builds Japan's largest-scale IoT-linked system for advanced services.
  • As a consolidated subsidiary of Suntory Holdings, it handles core group businesses.
  • Deep connections with medical institutions and health food industry through health-oriented product development.
  • Has European business bases that integrate domestic and international beverage brands for unified strategy formulation.

Future Outlook

Growth Drivers

  • Expansion of functional beverage demand due to rising health consciousness
  • Diversification and expansion of corporate services
  • Strengthening brand deployment in overseas markets
  • Improved marketing effectiveness through digitalization
  • Increasing consumer interest in sustainable products
  • Operational efficiency improvements via IoT vending machines
  • Expanded launch of new flavors and health-value products
  • Strengthening of e-commerce and direct sales channels
  • Brand value enhancement through environmental considerations
  • Loyalty improvement via innovative consumer experiences
  • Growth leveraging industry alliances and M&A
  • Market expansion through strengthened ties with municipalities and regions

Strategic Goals

  • Achieve consolidated sales of 2 trillion yen domestically and internationally
  • Surpass 1,000 companies with corporate vending machine introductions
  • Achieve environmental target of 50% CO2 emission reduction
  • Adoption rate of over 70% for renewable material packaging
  • Over 40% sales ratio for functional and health-oriented products
  • Establish integrated operations for overseas brands
  • Maximize customer experience value through DX promotion
  • Achieve over 30% ratio of female managers
  • Exceed 100 billion yen in new business sales
  • Expand social contribution activities in collaboration with local communities

Business Segments

Vending Machine Business

Overview
Provides vending machine installation and operation services to corporations, creating communication promotion and customer convenience.
Competitiveness
Extensive track record as industry leader and advanced services
Customers
  • Companies/Offices
  • Commercial Facilities
  • Public Facilities
  • Schools
Products
  • Beverage Vending Machines
  • Light Meal Vending Machines
  • President's Treat Vending Machine Service
  • DAKARA Hydration Station

Wholesale & Sales Channel Support

Overview
Supplies products to multiple channels through a powerful sales network and provides sales support.
Competitiveness
Broad channel contacts and diverse product lineup
Customers
  • Retailers
  • Restaurants
  • Supermarkets
  • Convenience Stores
  • Drugstores
Products
  • Soft Drink Products
  • Health Functional Beverages
  • Alcoholic Beverages

Overseas Business Expansion

Overview
Drives growth in international business through diversified beverage operations in North America, Asia, Europe, etc.
Competitiveness
Localized management strategy and multi-brand operation capabilities
Customers
  • Local Distributors
  • Local Subsidiaries
  • International Retail Chains
Products
  • Overseas Brand Beverages
  • Pepsi-Cola Products
  • Oronjina Products

Contract Manufacturing & OEM Business

Overview
Supports customer product launches through OEM provision using high-quality manufacturing technology.
Competitiveness
Large-scale production capacity and technological prowess
Customers
  • Other Food Manufacturers
  • Beverage Brands
  • Health Food Companies
Products
  • Contract Manufacturing of Soft Drinks
  • Health Food Products
  • Functional Labeled Beverages

Logistics Services

Overview
Efficient delivery and inventory management services utilizing dedicated logistics networks.
Competitiveness
Optimized logistics system through group collaboration
Customers
  • Retailers
  • Wholesalers
  • Logistics Companies
Products
  • Beverage Logistics
  • Refrigerated/Frozen Transport
  • Inventory Management

Marketing Support

Overview
Services to enhance brand value through sales promotion and customer analysis.
Competitiveness
Abundant industry data and expertise
Customers
  • Brand Owners
  • Retail Chains
  • Advertising Agencies
Products
  • Promotion Planning
  • Sales Data Analysis
  • Campaign Planning

R&D & New Product Development

Overview
Advances R&D for sustained product innovation and new market creation.
Competitiveness
Shared research resources across the group
Customers
  • Internal Group Divisions
  • New Customers
  • Research Institutions
Products
  • New Functional Beverage Development
  • Technology License Acquisition
  • Product Improvement

Environmental Business

Overview
Promotes product development and social contribution activities aimed at reducing environmental impact.
Competitiveness
Linked to the group's strong environmental strategy
Customers
  • Municipalities
  • Environmental Companies
  • NGOs
Products
  • Recycling Business
  • Eco-Friendly Packaging
  • Energy-Saving Technology

Food Service Business

Overview
Provides food services leveraging soft drinks and operational support.
Competitiveness
Attractive product offerings through brand collaboration
Customers
  • Restaurant Chains
  • Event Organizers
  • Cafes
Products
  • Beverage Service
  • Store Operation Support
  • Event Planning

Overseas M&A Support & Consulting

Overview
Provides M&A and consulting services for global business expansion.
Competitiveness
Extensive global network and expertise
Customers
  • Overseas Food Companies
  • Investment Firms
  • Acquisition Targets
Products
  • Overseas Market Research
  • Acquisition Support
  • Management Integration Support

Technology Licensing Business

Overview
Business of licensing proprietary technologies and providing technical support.
Competitiveness
Unique technological assets and experienced engineers
Customers
  • Domestic & International Beverage Manufacturers
  • Manufacturing Equipment Makers
  • Research Institutions
Products
  • Production Technology Provision
  • Patent Licensing
  • Technical Support

Health-Related Product Manufacturing Business

Overview
Contributes to market expansion through manufacturing and OEM of health-oriented products.
Competitiveness
High-quality control and manufacturing technology
Customers
  • Health Food Companies
  • Drugstores
  • Mail-Order Retailers
Products
  • Functional Foods
  • Supplements
  • Health Beverages

Competitive Advantage

Strengths

  • Strong sales networks domestically and internationally
  • Diverse brand portfolio
  • Solid financial base
  • Innovative product development capabilities
  • Comprehensive vending machine service deployment
  • High-quality manufacturing technology
  • Response capabilities to environmental and social issues
  • Uniqueness of corporate services
  • Active overseas business expansion
  • Broad customer base collaboration
  • Continuous brand strengthening
  • High marketing capabilities
  • Vending machine self-checkout technology
  • Hybrid deployment of food and alcohol
  • Large-scale R&D investment

Competitive Advantages

  • Brand strength and high customer recognition across diverse categories
  • Operational capabilities for international brands like Pepsi and Oronjina
  • Differentiation through unique services in corporate channels
  • Consumer-close sales via nationwide vending machines
  • Track record in introducing sustainable eco-friendly products
  • Strengthened growth base through aggressive overseas market entry
  • Continuity of advanced technology development and product innovation
  • Large-scale marketing investments backed by capital strength
  • Efficient management leveraging group synergies
  • Optimization of sales network combining multiple channels
  • Accelerated business expansion through partnerships
  • Advanced introduction of corporate light meal sales services
  • Coverage of multi-layered customers with wide price ranges
  • Competitiveness in health-oriented products and sports drinks
  • Enhanced customer brand loyalty through continuous brand renewal

Threats

  • Risk of cost increases due to raw material price fluctuations
  • Intensifying competition in the domestic beverage market
  • Political and economic risks in overseas markets
  • Impact of strengthened regulations and health-oriented restrictions
  • Cost increases in packaging and logistics from stricter environmental regulations
  • Market share pressure from increasing new entrants
  • Impact of exchange rate fluctuations on overseas profits
  • Demand fluctuations due to changing consumer preferences
  • Adaptation delays to rapid technological evolution
  • Need for vending machine demand decline or technological transformation
  • Supply chain uncertainties and logistics issues
  • Pressure from competitors' aggressive M&A strategies

Innovations

2024: Advancing Self-Checkout for Corporate Vending Machines

Overview
Nationwide rollout of 'Bosmart' light meal vending machines to strengthen cashless sales.
Impact
Improved sales efficiency and significantly enhanced customer convenience.

2023: Introduction of Heatstroke Prevention Vending Machine 'DAKARA Hydration Station'

Overview
Promotes employee health management support through free water vending machines for companies.
Impact
Provides new value for corporate employee health management.

2022: Nationwide Expansion of 'President's Treat Vending Machine'

Overview
Expands corporate free beverage distribution service from Tokyo metropolitan area to nationwide.
Impact
Contributes to loyalty improvement with over 360 companies utilizing.

2021: Acquisition of Manufacturing and Sales Rights for Ajinomoto AGF Products

Overview
Inherits manufacturing and sales of 'Blendy' bottled coffee to expand product lineup.
Impact
Contributes to improved competitiveness in soft drink division.

2020: Initiation of Eco-Friendly Packaging Introduction

Overview
Promotes recycled PET bottle usage and implements plastic reduction technology.
Impact
Successfully reduces environmental impact and strengthens brand image.

2023: Strengthening Digital Marketing Strategy

Overview
Achieves improved customer data analysis and targeting accuracy using AI.
Impact
Contributes to improved sales efficiency and customer satisfaction.

2022: Development of New Functional Beverages

Overview
Expands lineup of vitamin and mineral-fortified beverages for health trends.
Impact
Promotes new customer acquisition and market share expansion.

2021: Introduction of Smart Vending Machine Technology

Overview
Deploys smart vending machines with IoT integration for inventory management and customer engagement.
Impact
Succeeds in reducing operational costs and maximizing sales opportunities.

2020: Brand Integration in Overseas Markets

Overview
Advances brand integration in Europe and Asia for efficient management.
Impact
Contributes to improved profitability and operational rationalization in international business.

2024: New Flavor Product Development

Overview
Expands existing brands to address diverse taste needs.
Impact
Leads to preventing customer boredom and sales expansion.

Sustainability

  • Expansion of recycled resource use and strengthened plastic reduction
  • Development and promotion of low-environmental-impact products
  • Manufacturing process improvements for food loss reduction
  • Implementation of environmental education programs in collaboration with local communities
  • Enhanced health promotion and safety measures for employees
  • Promotion of energy-saving technology in vending machines
  • Thorough water resource management for intake and drainage
  • Promotion of green logistics and CO2 emission reductions
  • Strengthened ESG compliance and audits in supply chains
  • Creating diverse and inclusive workplace environments
  • Continuous expansion of environmentally certified products
  • Expansion of sustainable raw material procurement