No.9434   2006. 4

Establishment of Suntory International Group Scholarship for
University Students in Shanghai, China
Another Suntory initiative to benefit local communities

Suntory Ltd. has established the Suntory International Group Scholarship to benefit students at four universities in Shanghai, China. The program, which will be part of the Shanghai City Education Development Foundation, begins in April 2006.

Since its founding, Suntory has practiced “Rieki Sanbun,” meaning that we not only reinvest profits in our business, but also pass them on to customers, employees and society as a whole. This idea has guided our social initiatives in many areas.

Staying loyal to this principle, Suntory has established the new scholarship program to return part of its profits to the community in Shanghai, where we are actively doing business. Through this program, we will give 3.84 million yuan (about 55 million yen) to students. This is one of the largest scholarship totals to be donated by a single enterprise. The scholarships will be provided to 160 students at four universities in Shanghai over a four-year period. By founding the Suntory International Group Scholarship and supporting ambitious students in the Shanghai area, Suntory is launching yet another initiative on behalf of a community in which it does business.

▼ Fund name: Suntory International Group Scholarship

▼ Period covered: April 2006 - December 2009

▼ Scholarship amounts: 800 yuan monthly per recipient

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Suntory's business in China

In 1984, Suntory founded and launched a brewing business at China Jiangsu Suntory Foods Co., Ltd., China's first joint venture brewery with foreign capital, in Lianyungang, Jiangsu Province.

This beer operation in Jiangsu Province helped Suntory gain experience in the Chinese business world, and led to the launch of subsequent beer and soft drink businesses in Shanghai in 1995.
In 1999 Suntory became No. 1 in the Shanghai beer business. Our soft drink brands, like Suntory Oolong Tea, have also become a fixture in the market since their introduction.

In 2003 Suntory followed these activities by manufacturing and selling draft beer for the first time in the Shanghai area, and we purchased Donghai Brewery in 2005. These actions have propelled Suntory to strong growth in the Shanghai beer market, in which our share is now more than 50%.