Health Foods: Contributing to Health in Daily Life

Inspired by the growing health-consciousness among today's consumers, Suntory has embarked on business in the field of Health and Life Sciences. This business builds on a foundation established through years of research, including scientific research on food and biotechnology.
After launching the sesame-based health supplement Sesamin in 1993, we established our Consumer Health Products Division in 1999 to undertake health food development with Suntory's original ingredients and scientific technologies. Then, in 2001, we introduced the new Power of Nature product series, which draws on the results of research conducted by the Institute for Health Care Science we established to strengthen our health-related R&D structure.
We are currently operating a convenient mail-order service to market a variety of products that satisfy customers' needs. These include the Sesamin series as well as Aravita and Maca with Tochukaso [Cordyceps Sinensis].
Suntory's health foods contribute to better health in daily life based on scientific findings and thorough quality control.

Health Beverages: Producing Drinks for Everyday Health

In March 2002, Suntory established the Healthy Foods Project Team, which has since become the Healthy Beverage Department, to pursue new product development based on the concept of "beverages that truly contribute to people's health, with scientifically demonstrated effects and safety". The team released its first product, Flavan Tea, a healthy green tea containing pine polyphenol (flavangenol), in November 2003. This was followed in March 2005 by a second product, Mizumizushia, the first bottled water in the health food field developed to help maintain a proper blood-sugar level. Both have been warmly received by customers as products help to maintain health. In May 2006, moreover, we drew on the results of our years of research on the efficacy of Oolong tea to launch Kuro (Black) Oolong Tea, a specified health beverage recognized for its ability to suppress elevation of neutral fat by restraining fat absorption. We intend to continue researching and developing products with a sound scientific basis to assure customers a healthy and good-tasting dietary life.

Global Business: Conducting Business Actively in the Americas, Asia and Oceania

Suntory is actively deploying its food and beverages business overseas as well. It operates the third largest Pepsi bottler in the United States, Pepsi Bottling Ventures, which handles both manufacturing and sales of Pepsi brand products, and, in Asia and Oceania, Cerebos Pacific, the manufacturer of BRAND'S health foods and various processed foods centered on coffee and sauces-both with considerable success.
In 1995, Suntory established a joint-venture beverage-manufacturing company, Shanghai Suntory Maling Foods, Co., Ltd., and initiated operations in China. We have maintained steady leadership since in a wide variety of categories in Shanghai, China's fastest-growing beverage market, with such leading products as Suntory Oolong Tea and Suntory Orange Juice as well as our SuperUltima functional drink. We continue to meet customer needs by proactively launching new products, including hot beverages, and conducting energetic in-store sales activities. In 2004, we expanded our operations by extending product distribution to Beijing and Taiwan as well. We followed this in 2005 by building a new plant in Pudong, Shanghai, to meet growing demand and achieve efficient production and improved quality assurance. And in 2006, Suntory became 100 percent owner of Shanghai Suntory Maling Foods, Co., by acquiring the remaining shares from Maling Foods Corp.
We will continue this business expansion in order to achieve further growth centered on China, and to take advantage of the upcoming Beijing 2008 Olympic Games and the 2010 Shanghai World Expo to elevate our international profile further.

Häagen-Dazs: Further Enhancing the Brand Appeal

Hääagen-Dazs Japan, Inc., a joint venture formed by Suntory and a U.S. partner, produces and distributes Hääagen-Dazs super-premium ice cream and operates Hääagen-Dazs shops in Japan. We continue to promote activities that surprise and inspire customers, as exemplified by the enrichment of standard categories such as the Mini Cup series, new product launches in such new categories as the Crispy Sandwich and Parfait series, and our attractive Hääagen-Dazs store creation.