BRAND EQUITY × INNOVATION

At SBF, we leverage the brand equity that we have cultivated over many years to create innovations in all stages of our business, from R&D and production to marketing and sales. By incorporating the concept of “newness,” we have realized a virtuous cycle that further enhances our brand equity.
We believe that, through this virtuous cycle, we will be able to increase our competitiveness and achieve sustainable growth.

R&D

High-Value-Added Products that Leverage Our R&D Capabilities

At SBF, we are taking initiatives to further expand our business by creating new demand through the development and launch of new high-value-added products. Our R&D capabilities provide the source for the creation of such products.

Iyemon Tokucha

Iyemon Tokucha
<Iyemon Tokucha>

Iyemon Tokucha is one of our FOSHU*1 drinks. The majority of FOSHU drinks in the market to date worked to make fat more difficult to absorb when consumed with a meal. However, Iyemon Tokucha is the first FOSHU drink that focuses on mechanisms that assist with the breakdown of stored body fat. Therefore, it is suitable to drink during work or exercise or in a variety of other settings outside of regular meals. It also has a delicious taste that the consumer will not tire of drinking on a daily basis.
This accomplishment is the result of the R&D capabilities that the Suntory Group has cultivated over the years. During our continued research on polyphenols, we discovered that quercetin glucoside, a type of polyphenol commonly found in vegetables and fruits, such as onions, broccoli, and apples, works to support the breakdown of body fat. After approximately seven years from the start of initial research, we were able to develop Iyemon Tokucha, which contains quercetin glucoside.
With its value proposition as a drink that has efficacy and a delicious taste, we have actively carried out advertising and marketing activities to promote Iyemon Tokucha. As a result of active advertising and marketing activities conveying its value on providing both efficacy and a delicious taste, the sales volume of Iyemon Tokucha remains strong since its launch in October, 2013, and has been the number one FOSHU tea drink in the Japanese market 3 years in a row*2.

*1 FOSHU (Foods for Specified Health Uses) refers to foods and drinks that have been scientifically proven to be beneficial for maintaining and promoting health and approved by the Consumer Affairs Agency of Japan.
*2 INTAGE SRI data; FOSHU tea drink market; sales of Iyemon Tokucha in Jan. 2014–Dec. 2016 (total sales in supermarkets, convenience stores, and drugstores)

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Product Development that Utilizes Our Global Expertise

SBF’s product portfolio, which emphasizes the concepts of “natural & healthy”and “unique & premium,” differs from those of other major beverage companies around the world. By leveraging this portfolio, SBF continues to roll out new products, combining the development and production technologies that Group companies both in Japan and overseas have cultivated over the years.

Orangina, TEA+

Orangina, TEA+
<Utilizing our brand>

In 2012, we released Orangina, which originates in France, as a product that is better tailored to consumers in Japan. In addition, we combined our technologies with those of the Orangina Schweppes Group to create Lemongina, which was launched in 2015. Furthermore, we released Blood Orangina in March 2016.

<Utilizing our R&D technology>

In 2013, utilizing our R&D technology on Suntory Oolong Tea in Japan, we launched TEA+ Oolong Tea in Vietnam and MYTEA Oolong Tea in Indonesia. Furthermore, in 2014, we released the hydration drink OVI, which contains antioxidants extracted from green tea, in Australia, and subsequently in New Zealand and the United States. In 2016, we launched our premium low-sugar iced tea May Tea in France.

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PRODUCTION

Innovations in the Weight Reduction of Container and Packaging Materials

SBF is carrying out on-site innovations in production. The representative example of these innovations is the weight reduction of container and packaging materials, beginning with PET bottles. Not only are we taking steps to reduce the weight of PET bottles and bottle caps, we are also moving forward with the use of roll labels. These initiatives aim to reduce our environmental impact, and they are also contributing to decreased production costs.

Activities to Reduce Costs Overseas

SBF’s cost reduction activities are not limited only to Japan. For example, we began operation of a PET bottle preform production line in Vietnam in 2015. PET bottle preforms, made from PET resin, are the original mold for a PET bottle, and PET bottles are made by feeding air into the preform and inflating it. Producing preforms in-house leads to reduced costs.

MARKETING

Expanding Schweppes Brand in Europe

Innovations in marketing are essential in assessing consumer needs and launching products that create new value into the market. We introduce the success of the Schweppes Premium Mixers as an example of how we identified the kind of product consumers desire and created new demand.

Schweppes

Schweppes
<Schweppes>

Currently, the SBF Group is selling the Schweppes brand in a large number of European countries.
Among these countries, Spain is especially important. In the on-premise market in Spain,which includes bars and restaurants, sales of the Schweppes Premium Mixers are growing. The gin and tonic cocktail is currently extremely popular in Spain, and we were able to successfully capitalize on the country’s custom of selecting a brand of gin and a brand of tonic when ordering the cocktail.
In addition to the detailed response by our direct sales department to consumer preferences at bars and restaurants, the brand’s unique bottle, which conveys a sense of luxury, is also contributing to improving the strength of the Schweppes Premium Mixers. Furthermore, we are developing a number of different flavors that pair well with a variety of spirits.
By building on our success in Spain, we will expand such business in other European countries, beginning with France, to create a new pillar for profits going forward.

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Creating New Demand that Leverages the Strength of Our Brands

Another of our innovations in marketing is the new demand we have created by leveraging the strength of our brands to develop products in various categories that offer new value.

<Suntory Tennensui>

As one of our core brands in Japan, Suntory Tennensui emphasizes its unique brand value of “clear & tasty” and “natural & healthy.” Since its launch in 1991, Suntory Tennensui has been the No.1 brand in the domestic mineral water market 21 years in a row*1. By leveraging the strength of the Suntory Tennensui brand, we continue to offer new values to consumers by creating new brand subcategories, such as the sparkling water in 2013, and the flavored water in 2014. With the continuing good performance of Suntory Yogurina & Minami-Alps Tennensui launched in 2015, Suntory Tennensui brand’s sales volume reached 100 million cases in 2016.

*1 INTAGE SRI data; domestic mineral water market sales volume in Jan., 1996–Dec., 2016 (amount) (Channels)
1996–2001: total sales in supermarkets, convenience stores, liquor stores, grocery stores, and bakeries
2002–2006: total sales in supermarkets, convenience stores, drug stores, liquor stores, grocery stores, and bakeries
2007–2016: total sales in supermarkets, convenience stores, and drugstores

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<Suntory Tennensui>

As one of our core brands in Japan, Suntory Tennensui emphasizes its unique brand value of “clear & tasty” and “natural & healthy.” Since its launch in 1991, Suntory Tennensui has been the No.1 brand in the domestic mineral water market 21 years in a row*1. By leveraging the strength of the Suntory Tennensui brand, we continue to offer new values to consumers by creating new brand subcategories, such as the sparkling water in 2013, and the flavored water in 2014. With the continuing good performance of Suntory Yogurina & Minami-Alps Tennensui launched in 2015, Suntory Tennensui brand’s sales volume reached 100 million cases in 2016.

*1 INTAGE SRI data; domestic mineral water market sales volume in Jan., 1996–Dec., 2016 (amount) (Channels)
1996–2001: total sales in supermarkets, convenience stores, liquor stores, grocery stores, and bakeries
2002–2006: total sales in supermarkets, convenience stores, drug stores, liquor stores, grocery stores, and bakeries
2007–2016: total sales in supermarkets, convenience stores, and drugstores

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<BOSS>

The long-selling canned RTD coffee brand Boss has continued to grow since its release over 20 years ago. To respond to consumer taste and preferences, which change from generation to generation, we have created new subcategories for the brand, such as Boss Zeitaku Bito, Boss Muto Black, and Boss Café au Lait, in addition to the regular Boss Rainbow Mountain Blend. We have also implemented various marketing initiatives for the brand, such as creating memorable TV commercials and appealing sales promotions. In 2015, we launched the bottle-shaped canned coffee, Premium Boss Bito; and in 2017, we launched the PET bottled coffee, Craft Boss Black.

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SALES

Taking on the Challenge of a New Business Model through the Full-Line Beverage Service Business

In 2015, SBF welcomed Japan Beverage Holdings Inc. and JT-AStar Co., Ltd. into the SBF Group. In doing so, we acquired a so-called “full-line beverage service business” that can provide consumers with a variety of options for enjoying beverage products, such as vending machines that deliver products from other beverage manufacturers, tea servers, and coffee servers, in addition to the can and PET bottle products of SBF.
We will advance the full-line portfolio this business has to offer by bringing together various strengths, including the distribution network, product and vending machine development capabilities, and the synergies among Group companies that we possess, as well as the capabilities of external partners. In this way, we will offer new solutions to offices.

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