Suntory CEO on Shifting Consumer Trends: Less Alcohol, More Premium Spirits

Shifting Consumer Preferences

• 📉 Younger consumers, including millennials and Gen Z, are increasingly shifting away from traditional alcohol consumption.
• 💡 This trend is considered permanent by Suntory Holdings CEO Takeshi Niinami.

Suntory's Product Strategy

• 🎯 Suntory is adapting by launching new products with less alcohol content and no alcohol options.
• 🚀 The company is focusing on categories like seltzer and ready-to-drink (RTD) beverages, leveraging R&D to create value-added products.
• 🥃 While overall spirit consumption is down, very premium spirits continue to see strong sales and demand.

Market Adaptation and M&A

• 🧩 The market for lower-alcohol and non-alcoholic beverages is growing rapidly, replacing some of the space previously held by traditional spirits.
• 🤝 Suntory anticipates potential M&A activity in this segment, possibly involving soft drink players looking to expand into this hybrid market.