The Suntory Group continued to push forward with aggressive business expansion during the first half of 2025, even as challenging global conditions weighed on performance.
For the six-month period ending June 30, 2025, the company maintained stable revenue in Japan’s Beverages and Foods Segment compared with the same period last year, while its Alcoholic Beverages Segment surpassed domestic revenue from the prior year. However, overseas operations faced a perfect storm of economic uncertainty, declining demand in key markets, currency fluctuations, and the absence of one-off gains from the previous fiscal year’s asset sales.
Financial Overview
Consolidated revenue, including liquor tax, fell 1.9% year-on-year to 1,617.6 billion yen, while revenue excluding liquor tax dropped 2.2% to 1,456.3 billion yen. Operating income declined sharply by 30.6% to 129.6 billion yen, and profit attributable to owners of the company fell 35.7% to 59.6 billion yen.
The Alcoholic Beverages Segment—despite strong performance in Japan—reported declines due to softer overseas markets, currency headwinds, and the lack of extraordinary gains from the sale of affiliated companies last year. Revenue including liquor tax decreased 1.8% year-on-year to 652.5 billion yen, and revenue excluding liquor tax fell 2.4% to 491.6 billion yen. Operating income plunged 32.9% to 71.6 billion yen.
Brand Performance and Market Highlights
Spirits & Whisky
Sales in the spirits business fell due to weaker consumption in the U.S. and Europe, but Japan, China, India, and duty-free channels remained resilient. Japanese whiskies Yamazaki, Hibiki, and Toki maintained strong momentum, alongside Japanese Craft Gin Roku and the Ready-to-Drink (RTD) brands -196 and On The Rocks. Indian whisky Oaksmith also delivered solid results.
In Japan, the Kakubin brand achieved higher sales volumes year-on-year and earned a Gold medal at the International Spirits Challenge 2025 for the second consecutive year. Roku Gin posted double-digit growth in sales volume, supported by expanded marketing campaigns emphasizing its six unique Japanese botanicals.
RTD Innovations
The company strengthened its RTD portfolio, with the -196 Sugar-free series achieving double-digit growth through its proprietary Freeze Crush Infusion (FCI) technology. New launches, such as THE PEEL (Lemon)—positioned between beer and RTD—were aimed at attracting beer enthusiasts. In the U.S., the world’s largest RTD market, -196 and On The Rocks expanded nationwide and introduced new flavors, winning over new consumers.
Beer Segment
Domestic beer sales volume matched the previous year’s level, with notable growth in key brands:
- Suntory Draft Beer: +24% sales volume, boosted by its renewed flavor profile and expanded distribution via glass bottles and kegs to ~25,500 outlets.
- Perfect Suntory Beer: +19% sales volume following packaging and taste enhancements.
- Kin-Mugi: Continued to outperform market trends by promoting food pairings with seasonal dishes.
Wine Segment
Revenue from the wine business grew by 2% including liquor tax (3% excluding). Japanese wine Sankaboshizai Mutenka no Oishii Wine benefited from a brand renewal, while SUNTORY FROM FARM expanded with multiple new product launches. In imported wines, the Tavernello Organico organic Italian wine line recorded healthy growth.
Non-Alcoholic Innovation
Suntory’s newly established Non-Alcoholic Department in Japan positioned its offerings as “alcoholic beverages with 0.00% alcohol content.” The April launch of All Free Clear, a sour-taste non-alcoholic drink, has been well received for its refreshing profile.
Strategic Investments
The company invested in the Suntory Osaka Plant, enhancing production capabilities and quality control. The newly built Osaka Spirits & Liqueurs Craft Distillery began operations in June, underscoring Suntory’s commitment to premium spirits innovation.
Outlook
Despite a difficult first half marked by currency volatility and weaker overseas markets, Suntory continues to lean on its strong domestic performance, premium brand portfolio, and innovation-driven strategy. Its investments in production capacity, product diversification, and marketing are designed to reinforce resilience and position the company for long-term growth.
Source: Suntory Group