We are expanding our businesses globally with a focus on five key regions.Based on consumer-centric ideas, we evolve values of drinks by utilizing our brands,knowledge, and technology which we accumulated over many years.
With further diversification of product categories, advancements in container development, expansion of logistics, and changes to consumer lifestyles and needs, the soft drink market in Japan has been experiencing long term growth.
Non-sugar RTD (ready to drink) products, such as sugar-free tea and water, hold large market shares, and the market is characterized by the ability to buy drinks anytime and anywhere thanks to the widespread presence of vending machines.
Recently, customers have been becoming more health conscious, and due to an increase in the average water intake per person, soft drink consumption is on the rise. These changes are accelerating.
Based on the above trends, SBF Japan considers water, coffee and sugar-free tea to be the market's future growth categories and will put its efforts into these strengthening these products. We aim to focus on our core brands such as Suntory Tennensui, BOSS, Suntory Green Tea Iyemon, Yasashii Mugicha and Suntory Oolong Tea, to improve brand value and to grow even further. Furthermore, we will look beyond existing categories to proactively propose new products of value.
In Europe, we carry out business mainly around brands that have been locally loved for years, including Lucozade and Ribena in England, and Orangina in France. Due to growing health-consciousness and the introduction of sugar taxes in each country, the increase in consumer needs for "natural & healthy" products has become a notable trend. In light of this situation, not only has the European business division been working at reducing the sugar and calorie content of existing core brands, such as Orangina, Lucozade, Ribena and Schweppes, but they have also developed a new low-sugar ice tea product called MayTea, which has been selling well in France, Belgium, and Spain. In addition, they have business operations in Africa and are strengthening the business base.
In Asia, we are operating a soft drink and a health supplement businesses. The soft drink business divisions are expanding in Vietnam, Thailand and Indonesia. They have established local joint venture companies and are developing in ways that meet the needs and situations of customers in each market. We are also trying to strengthen the distribution platform. In the health food business, we are manufacturing and selling BRAND'S products, including BRAND'S Essence of Chicken, mainly in Thailand. BRAND'S is a long-selling product that has been well received by customers as a nutritional drink and daily staple. More recently, in addition to strengthening current brands, we have started developing new product categories including TEA+, MYTEA and Good Mood by utilizing Suntory's R&D technology.
- Suntory PepsiCo
- Suntory PepsiCo
In Oceania, we are operating a soft drink and a fresh coffee business. For the soft drink business, Frucor Suntory Co. Ltd. is developing unique products centered around brands such as the energy drink V and the fruit juice drink Just Juice. More recently, with people becoming increasingly health conscious, we are expanding brand variety to include low-sugar products such as V Pure, new kombucha Amplify and the hydration drink OVI. In the fresh coffee business, we have established and strengthened the organizational structures and management infrastructure starting in 2018, and established Suntory Coffee Co., Ltd. for business operations. Beans are carefully selected, purchased and roasted in-house and sold to cafes, fast food outlets and shops. We are developing our own coffee brands, like Toby's Estate and Mocopan.
In the Americas, Pepsi Bottling Ventures in North Carolina, a joint venture company with PepsiCo, operates our soft drink business. As the non-carbonated market is growing, in addition to core Pepsi products, we are focusing on expanding water and coffee sales. Furthermore, we are searching for new business opportunities in light of urbanization, population movement and the diversification of consumer needs, including recent changes in consumption habits and developing health consciousness in the North American market.