JAPAN: Suntory to roll out own brands in new markets after GSK deal

By | 9 September 2013

Suntory Food & Beverage has no presence in Nigeria

Suntory Food & Beverage has no presence in Nigeria

Suntory has no plans to launch potential new acquisitions Ribena and Lucozade in Japan but will use them to expand its existing portfolio in the UK, Nigeria and Malaysia, the company said today (9 September). 

The three countries are core markets for the GlazoSmithKline (GSK) brands, which Suntory Food & Beverage has agreed to buy for GBP1.35bn (US$2.11bn), it was announced today. The Japanese soft drinks unit has almost no presence in the regions, but in a presentation after today's announcement said it will “gain opportunities” there through the “cross-launch” of Suntory brands.

“The addition of the sales network associated with these two global brands will give us a platform in countries where GSK already operates,” the company said.

Meanwhile, a Suntory Food & Beverage spokesperson told just-drinks the company, a division of Suntory Holdings, has “no plans to sell Lucozade and Ribena in other new markets, including Japan, at the present moment”.

The UK accounted for 77% of Ribena and Lucozades sales volumes last year, according to Euromonitor figues cited by Suntory Food & Beverage.

Lucozade is the top-selling product by volume in the UK energy drinks category while Ribena is the fourth-biggest selling product in the fruit juice & concentrated fruit juice category by volume. Suntory distributes its Orangina brand in the UK through an agreement with AG Barr.

The spokesperson confirmed the company has no presence in Nigeria, while in Malaysia it owns food company Cerebos Pacific.

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Expert analysis

Suntory Holdings Ltd in Soft Drinks (Japan)

Suntory Holdings aims to reinforce its core business, carry out internal synergies in the Suntory Group, and develop new businesses. In order to achieve this, the company targets further cultivation of its focus brands, such as Suntory Boss, Iyemon, Tennensui and Pepsi, and also the introduction of more health and wellness products to the domestic market.

Sectors: Mergers & acquisitions, Soft drinks

Companies: Suntory, AG Barr

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