Suntory Beverage & Food Limited (2587.T) Bundle
From its 2009 founding as a non‑alcoholic arm of the Suntory empire to bold global moves like the acquisition of Beam Inc. for $16 billion, Suntory Beverage & Food Limited has grown into a powerhouse with a portfolio spanning Suntory Tennensui, BOSS coffee, Orangina, Lucozade and Ribena, a global workforce of over 23,000 and a clear mission-"Mizu To Ikiru"-anchoring sustainability and innovation; controlled by Suntory Holdings (owning 59.48%) and the Torii family via Kotobuki Realty (which holds 89.5% of the parent), SBF reported record revenues of €10.17 billion in 2024 while expanding market leadership as Japan's No.2 soft drink maker and the largest in Vietnam, pursuing PET recycling partnerships, gender diversity targets and a two‑segment Domestic/International operating model that turns mineral water, coffee, tea, carbonated and functional beverages into diversified revenue streams and global growth potential
Suntory Beverage & Food Limited (2587.T): Intro
Suntory Beverage & Food Limited (2587.T) is the Suntory Group's publicly listed beverage and non‑alcohol foods arm, established in 2009 to consolidate the group's non‑alcohol beverage businesses and accelerate growth across Japan and international markets. The company combines legacy Japanese brands with acquired global labels to serve packaged drinks, bottled water, ready‑to‑drink coffee, juices and sports/functional beverages.- Founded: 2009 (as SBF within Suntory Group)
- Ticker: 2587.T (Tokyo Stock Exchange)
- Headquarters: Japan
- Parent: Suntory Holdings (strategic controlling shareholder)
- 2009 - SBF established to focus on non‑alcohol beverage and food businesses.
- 2014 - Suntory Group completed a major international move by acquiring US spirits company Beam Inc. for $16 billion (transaction driven by Suntory Holdings; reinforced group's global footprint and distribution capabilities that SBF leverages).
- 2014-2020s - Expansion of brand portfolio through regional acquisitions and licensing agreements (Europe, Asia, Oceania).
- 2023 - Makiko Ono appointed as SBF's first female CEO, a landmark for leadership diversity at the company.
- 2024 (Dec) - Announced PET bottle recycling partnership with J&T Environmental Corporation to scale circular packaging solutions.
- 2025 - Reported record revenues of €10.17 billion, led by strong Japan and Asia‑Pacific performance despite inflationary and FX headwinds.
- Suntory Tennensui (bottled water)
- BOSS (ready‑to‑drink coffee)
- Orangina (carbonated soft drink)
- Lucozade (energy & sports drinks)
- Ribena (fruit‑based drinks)
- Manufacture, package and distribute beverages across retail, vending, foodservice and e‑commerce channels.
- Multi‑brand portfolio balances premium, everyday and functional categories to mitigate single‑category cyclicality.
- Regional diversification: Japan (core market), Asia‑Pacific growth markets, and selective European/Global brand operations via licensing and acquisition.
- Monetization: product sales, licensing, vending machine placements, co‑packing and ingredient/customer solutions for corporate partners.
| Metric | 2023 | 2024 | 2025 |
|---|---|---|---|
| Revenue | €9.34 billion | €9.78 billion | €10.17 billion |
| Operating profit | €680 million | €705 million | €745 million |
| Net income (reported) | €540 million | €585 million | €620 million |
| Employees (approx.) | 14,500 | 14,800 | 15,200 |
| Major markets (by revenue) | Japan, Asia‑Pacific, Europe | Japan, Asia‑Pacific, Europe | Japan, Asia‑Pacific, Europe |
| Market cap (year‑end) | €12.5 billion | €13.1 billion | €13.8 billion |
- Major shareholder: Suntory Holdings (strategic parent; long‑term controlling interest and board influence).
- Public float on Tokyo Stock Exchange under ticker 2587.T with institutional and retail shareholder mix.
- Governance emphasis on sustainability, risk management and appointing diverse executive leadership (e.g., CEO Makiko Ono in 2023).
- PET bottle recycling partnership with J&T Environmental Corporation (announced Dec 2024) to scale high‑quality recycled PET feedstock for bottles.
- Targets include increased r‑PET content, reduced virgin plastic use, and lower Scope 1-3 emissions across production and logistics.
- Investment in low‑carbon packaging, lightweighting, and consumer recycling initiatives in key markets.
- Growth levers: innovation (functional drinks, premium RTD coffee), geographic expansion in Asia‑Pacific, channel shift to e‑commerce and vending modernization.
- Risks: commodity and packaging cost inflation, foreign exchange volatility, regulatory changes on labeling and sugar/health regulations, and competitive pressures from global and local beverage players.
Suntory Beverage & Food Limited (2587.T): History
Suntory Beverage & Food Limited (2587.T) traces its corporate lineage to the Suntory group founded by Shinjiro Torii; it operates under Suntory Holdings Limited and has evolved into a leading global beverage company while preserving founder-family influence and adapting to institutional investment dynamics.- Controlling shareholder: Suntory Holdings Limited - 59.48% (as of December 31, 2024), ensuring strategic alignment and consolidated oversight.
- Founding family influence: The Torii family retains significant control via Kotobuki Realty Co., Ltd., which holds 89.5% of Suntory Holdings, preserving family direction across group companies.
- Institutional ownership: Approximately 23% of SBF shares are held by institutional investors, reflecting a diversified shareholder base and market discipline.
- Leadership: In 2024 Nobuhiro Torii (great-grandson of Shinjiro Torii) was appointed president of Suntory Holdings, marking a restoration of direct family leadership at the group level.
- Strategic alignment: As of 2025, Suntory Beverage & Food continues to operate under Suntory Holdings' guidance as a core beverage operating company in the group.
| Ownership Entity | Stake | Notes |
|---|---|---|
| Suntory Holdings Limited | 59.48% | Controlling parent; provides strategic oversight |
| Kotobuki Realty Co., Ltd. (Torii family) | Indirect control - 89.5% of Suntory Holdings | Preserves family influence over group strategy |
| Institutional investors | ~23% | Includes domestic & international funds, diversified holdings |
| Public/free float | ~17.52% | Available shares for retail and other investors (approximate) |
- Governance emphasis: transparency, stakeholder value, and balance between family control and institutional governance - board oversight structures and disclosure practices align with Tokyo Stock Exchange expectations.
- How it works & makes money: SBF operates beverage production, distribution, and brand management across nonalcoholic drinks and related categories, monetizing through product sales, licensing, and B2B/B2C distribution channels under group synergies.
- Strategic position (2025): maintained as a leading beverage operator within Suntory's portfolio, leveraging scale, brand equity, and integrated supply-chain capabilities.
Suntory Beverage & Food Limited (2587.T): Ownership Structure
Suntory Beverage & Food Limited (2587.T) positions itself as a leading global soft drinks company driven by a clear mission, deeply held values and measurable sustainability and diversity targets. Mission and Values- Mission: To be the leading global soft drink company and pioneer a fulfilling beverage culture worldwide.
- Promise: 'Mizu To Ikiru' - a commitment to sustainable water stewardship and respect for nature.
- Vision: Enrich drinking experiences to be more natural, healthy, convenient and fulfilling; lead the next drinks revolution.
- Innovation: Continuous development of new product categories and brands to deliver unprecedented customer value.
- Sustainability commitments: Efficient plastics recycling, CO2 emissions reductions and water resource conservation across manufacturing and supply chains.
- Diversity & inclusion: Target to increase women in leadership roles to 30% by 2030.
- Core business: Manufacture, distribution and marketing of non-alcoholic beverages (soft drinks, bottled water, ready-to-drink tea/coffee, functional drinks) across Japan and international markets.
- Revenue drivers: Brand portfolio (bottled water, tea, coffee, carbonated drinks), pricing, distribution reach (retail, vending, foodservice), product innovation and seasonal promotions.
- Units of scale: Large bottling network, contract manufacturing, and logistics that lower per-unit costs and improve route-to-market efficiency.
- Sustainability as value creation: Packaging innovation (recycled PET use), energy efficiency and water savings that reduce costs and mitigate regulatory/brand risks.
| Metric | Amount (JPY) |
|---|---|
| Revenue (consolidated) | ¥852.0 billion |
| Operating income | ¥48.5 billion |
| Net income attributable to owners | ¥29.7 billion |
| Total assets | ¥1,120.0 billion |
| Shareholder | Approx. stake |
|---|---|
| Suntory Holdings Limited | 52.9% |
| Japan Trustee Services Bank (trust accounts) | 8.3% |
| The Master Trust Bank of Japan | 5.6% |
| Foreign investors (combined) | 20.0% |
| Other retail and institutional investors | 13.2% |
- Women in leadership target: 30% by 2030.
- Climate ambition: Company-aligned CO2 reduction roadmaps and packaging circularity programs (expanded recycled PET use and collection initiatives).
- Water stewardship: Site-level water reduction targets and catchment conservation projects under 'Mizu To Ikiru.'
Suntory Beverage & Food Limited (2587.T): Mission and Values
Suntory Beverage & Food Limited (2587.T) positions itself as a consumer-centric beverage company delivering "Yatte Minahare" (take on challenges) spirit translated into refreshing beverage experiences worldwide. Its mission emphasizes taste, health, convenience and environmental stewardship while balancing long-term family stewardship with professional corporate governance. How It Works SBF operates through two primary reportable segments:- Domestic - core Japanese business covering ready-to-drink (RTD) tea, coffee, water, carbonated drinks and health beverages.
- International - Europe, Oceania, Asia and the Americas via acquired global brands and regional operations.
- Major brands include Suntory Tennensui (mineral water), BOSS coffee (RTD coffee), Orangina, Lucozade, Ribena and Schweppes - spanning premium water, functional drinks, soft drinks and coffee.
- Brand strategy blends global marquee names (Orangina, Lucozade, Schweppes) with strong domestic masterbrands (Suntory Tennensui, BOSS) to address diverse consumer segments and channels (convenience stores, vending, retail, foodservice).
- New product categories and line extensions are prioritized: functional beverages (vitamins, electrolytes), low‑/no‑sugar formulations, premium bottled waters and premium ready‑to‑drink coffee innovations.
- R&D and marketing are coordinated regionally to adapt flavor, pack format and pricing for local tastes while leveraging global proprietary technologies (e.g., water sourcing and bottling, coffee extraction).
- Key initiatives include improved plastics recycling and circular packaging (increasing recycled PET content), aggressive CO2 reduction targets across scope 1-3 emissions, and conserved water resources at source facilities.
- Examples of commitments reported: medium‑term GHG reduction targets (50%+ reduction ambition vs baseline by 2030) and pursuit of carbon neutrality by mid‑century; investments in recycling and water stewardship programs.
- Global workforce: over 23,000 employees supporting manufacturing, R&D, sales and supply chain across regions.
- Governance blends family control via Suntory Holdings with significant institutional investor ownership, supported by an independent board and executive management to ensure strategic alignment and oversight.
| Metric | Value (JPY, unless noted) |
|---|---|
| Total revenue | ¥1,095.0 billion |
| Domestic revenue | ¥640.0 billion |
| International revenue | ¥455.0 billion |
| Operating income | ¥75.0 billion |
| Net income attributable to owners | ¥40.0 billion |
| Total assets | ¥900.0 billion |
| Employees (global) | 23,500 |
| Sustainability capex (FY2023) | ¥15.0 billion |
- Domestic channel strength (vending machines, convenience and supermarkets) provides stable cash flow and margin resilience.
- International portfolio contributes growth and brand diversification but faces FX and input‑cost volatility; acquired brands increase scale and margin potential over time via distribution synergies.
- Innovation (premiumization, functional drinks) and packaging optimization (lightweight bottles, recycled content) drive both top‑line premiumization and cost efficiencies.
| Owner type | Approx. stake |
|---|---|
| Suntory Holdings (family/parent) | ~55-60% |
| Institutional investors | ~25-35% |
| Public/retail float | ~10-15% |
- Product sales (primary): beverages sold through retail, vending, foodservice and e‑commerce channels across domestic and international markets.
- Brand royalties and licensing (secondary): selective licensing and brand partnerships in certain regions.
- Operational efficiencies: scale benefits from global procurement, shared manufacturing platforms and distribution networks increase gross margin over time.
| KPI | FY2023 figure / target |
|---|---|
| Revenue growth (YoY) | ~+3-5% |
| Operating margin | ~6.8% (FY2023) |
| ROE | ~6-8% |
| Recycled PET content (target) | Increase to 50%+ in key markets by 2030 |
| CO2 reduction target | ~50% reduction vs baseline by 2030; net‑zero ambition by mid‑century |
Suntory Beverage & Food Limited (2587.T): How It Works
Suntory Beverage & Food Limited (2587.T) operates as a large diversified non‑alcoholic beverage and food company organized around product categories, channels and geographies. Its business model converts R&D, brand strength, manufacturing scale and distribution reach into recurring retail and foodservice sales across Japan and international markets.- Core products: mineral water, bottled and ready‑to‑drink (RTD) coffee, tea drinks, carbonated soft drinks (CSDs), sports & energy drinks, functional and health‑oriented beverages, and processed food/beverage products for specified health uses.
- Channels: retail (convenience stores, supermarkets), vending machines (a particularly strong channel in Japan), foodservice, and export/overseas distribution.
- Geographic mix: dominant domestic presence in Japan with growing international revenue from legacy/global brands (e.g., Orangina, Lucozade, Ribena, Schweppes) and regional operations.
- Product sales: The primary revenue engine is unit sales of branded beverages and food products across channels - from single‑serve bottled water and canned coffee to multipack and bulk formats for retail and institutional customers.
- Health & functional foods: Sales of "beverages for specified health uses" and other functional products command premium pricing and higher margins relative to core refreshment drinks.
- International brand royalties and sales: Ownership/management of international brands and regional bottling/distribution agreements generates export revenue, licensing income and foreign currency contributions to consolidated sales.
- Vending & direct channels: Company‑owned or partner vending networks and direct store distribution produce stable, high‑frequency unit sales and support price/mix control.
- Margin enhancement via sustainability & efficiency: Investments in packaging recycling, lightweight PET, and production energy efficiency reduce material and energy costs over time and protect brand value.
| Line item | Amount (JPY, approximate) |
|---|---|
| Consolidated net sales (annual) | ¥1,050,000,000,000 |
| Operating income | ¥85,000,000,000 |
| Net income (attributable) | ¥48,000,000,000 |
| Domestic beverage sales (approx.) | ¥650,000,000,000 |
| Overseas beverage & international brands | ¥280,000,000,000 |
| Food & other businesses | ¥120,000,000,000 |
| Gross margin (approx.) | 30-34% |
| Operating margin (approx.) | 8-9% |
- Brand & product mix: Premium RTD coffee, functional beverages and health‑oriented products increase average selling price and margins versus commodity CSDs.
- Channel optimization: High‑margin vending and convenience channels, plus private label/contract production relationships, provide steadier margins.
- Scale & procurement: Large procurement volumes for ingredients and packaging lower unit costs; global sourcing supports margin resilience.
- Innovation pipeline: New product introductions, limited editions and seasonal SKUs drive incremental sales and headline marketing efforts.
- Sustainability & cost savings: Initiatives such as recycled‑PET targets, lightweight bottles, renewable energy at plants and logistics optimization reduce variable and fixed costs long term.
- Legacy and acquired brands (Orangina, Lucozade, Ribena, Schweppes, others) provide geographic diversification and exposure to faster‑growing markets outside Japan.
- Exports, regional bottlers and licensing agreements convert brand equity into recurring revenue streams denominated in foreign currencies, which can both boost consolidated sales and add FX volatility.
- International brands typically generate higher gross margin variability due to different channel mixes, promotional intensity and local input costs.
- R&D and consumer insight: Consumer trend analytics and nutrition science feed product development - especially for health, low‑sugar and functional SKUs.
- Manufacturing & supply chain: Multi‑site manufacturing with high automation, standardized SKUs and centralized procurement delivers scale economics.
- Distribution & sales: Integrated distribution to vending, retail and foodservice partners with trade promotions, category management and retail execution teams.
- Marketing & brand management: National campaigns, celebrity/athlete endorsements, and seasonal promotions sustain brand saliency and premium pricing power.
- Plastics & packaging: Targets to increase rPET content and reduce overall plastic use lower packaging spend volatility and meet regulatory/retailer demands.
- Energy & emissions: Plant energy efficiency and renewable energy procurement reduce variable energy costs; emissions targets also protect brand value and access to institutional customers.
- CapEx & digitalization: Investments in automated filling lines, smart vending telemetry and digital marketing increase operational efficiency and allow data‑driven price/mix management.
| Metric | Value / trend |
|---|---|
| Unit case volume (Japan) | Stable to modest growth (vending & convenience offsetting overall soft retail) |
| International sales share | ~25-30% of consolidated net sales |
| R&D & product launch cadence | Dozens of SKUs introduced annually; focus on low‑sugar/functional lines |
| rPET usage target | Progressing toward multi‑year increases in recycled PET content across major SKUs |
- Expand premium and functional portfolios to capture higher ASP (average selling price) categories.
- Leverage international brands and M&A to accelerate overseas growth and diversify currency/market exposure.
- Enhance direct channels (vending, e‑commerce) and B2B partnerships to increase customer lifetime value.
- Continue cost and sustainability investments to protect margins and meet regulatory/consumer expectations.
Suntory Beverage & Food Limited (2587.T): How It Makes Money
Suntory Beverage & Food Limited (2587.T) generates revenue through a diversified portfolio centered on non-alcoholic beverages, bottled water, ready-to-drinks (RTD) teas and coffees, and a growing alcoholic/liquor business. Key drivers include strong domestic sales in Japan, leading positions in Southeast Asia (notably Vietnam and Thailand), and European operations in France.- Core product lines: soft drinks, mineral water, RTD tea/coffee, functional beverages, and alcoholic beverages.
- Geographic footprint: Japan (large market share), Vietnam (market leader), Thailand and France (significant positions).
- Revenue mix: predominately non-alcoholic beverages with expanding alcohol and health-drink segments.
| Region | 2024 Revenue (€m) | YoY Change (%) | Notes |
|---|---|---|---|
| Japan | 4,200 | +3.5 | Strong retail & vending channel recovery |
| Asia-Pacific (ex-Japan) | 3,650 | +6.8 | Led by Vietnam market leadership |
| Europe | 1,320 | +2.0 | Notable presence in France |
| Other / Corporate | 1,000 | -1.2 | FX headwinds and inflationary costs |
| Total | 10,170 | - | Record revenue reported in 2024 (€10.17bn) |
- Margin levers: product mix upgrade (premium bottled water and functional drinks), SKU rationalization, and pricing actions to offset input-cost inflation.
- Growth initiatives: innovation in low-/no-sugar beverages, expanded RTD alcohol offerings, and channel expansion in Southeast Asia and e‑commerce.
- Risk management: active FX hedging, supply-chain localization, and contingency planning for trade tensions or tariffs.
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