• FY sales up 0.5% to JPY1.23tn (US$11.5bn)
  • Reported sales climb by 2%
  • Japan sales flat at JPY689.2bn
  • Europe up 1% to JPY238.9bn
  • Oceania down 2% to JPY42.8bn
  • Net profits climb 7% to JPY78.1bn
Suntorys beverage and Food unit delivered a weak sales increase in 2017

Suntory's beverage and Food unit delivered a weak sales increase in 2017

Suntory's soft drinks unit wants to double sales over the next 12 years as part of a new global strategy that includes fresh acquisitions in the US.

Suntory Beverage & Food, which released its full-year results today, said it wants to be the "third force" in global beverages behind The Coca-Cola Co and PepsiCo and boost sales to JPY2.5tn by 2030. In a presentation after the results release, management earmarked new business purchases in the US as part of a goal of expanding growth markets. The company said it will also look to "evolve" its portfolio and further invest in Asia, where it recently entered a Thai joint-venture with PepsiCo.

If Suntory is successful in reaching its 2030 FY target, sales will be just over half of what Coca-Cola achieved in its FY2016. 

Suntory Beverage & Food unveiled the new strategy as it delivered a weak 0.5% organic sales increase in the 12 months of 2017 on the back of a flat domestic unit. Reported performance overseas was helped by ForEx gains, however sales were relatively flat on a currency-neutral basis, and even declined in Oceania.

Organic net profits were up 7%, and by 9% on a reported basis.

Suntory said it will aim to improve Japan sales this year by focussing on "changes in the consumer environment brought about by rising health-focus among consumers and increasingly diverse lifestyles".

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