On 27-June-2024, Suntory made an announcement that they have set up an Indian subsidiary. This caught our team’s attention. We then delved a little into this announcement
Who is Suntory?
Suntory is one of the leading global alcoholic beverage manufacturer from Japan. Some of the brands that they manufacture and have popularised in India, at least in Gurgaon are: Hibiki, Maker’s Mark, Roku, Bowmore, Toki and Chita and Jim Beam. There are several other alcoholic brands which the company owns.
Why is it a big deal for Suntory?
At US$57.4 billion India is the world’s 3rd largest market for alcoholic beverages, after China and Russia. To be able to expand in a thriving ‘drinking’ country is always on the radar of leading beverage companies.
What is exciting about this announcement?
In Gurgaon, the tendency to explore a wide variety of alcoholic beverages is high. We have witnessed the growing popularity of Japanese brands- Roku and Hibiki. They are considered premium brands when compared to Jameson, Black Label, Chivas, etc.
With this announcement, Gurgaon’s happy drinking community’s secret desire is that prices of some of these may become competitive. As frame of reference : Glenfiddich 12Y in Gurgaon costs between 4,000 INR -5,000 INR compared to Hibiki which costs between 10,000 INR-12,000 INR.
Moreover, the subsidiary will be opened in Gurgaon, Haryana. So, there is expectation that prices in Gurgaon would be the most competitive in comparison to the rest of India.
What does the Suntory management say about setting up the subsidiary?
According to a company statement, “This aims to cover corporate functions required to build a firm business foundation and accelerate growth in its existing spirits business and establish opportunities for soft drinks as well as health and wellness business in the Indian market.”
This implies there is possibility of Suntory’s soft drinks making their way into the shelves of supermarkets.
We will follow this development and analyse:
1. If Suntory has been able to price its products competitively.
2. If their products make their own way into the consideration set of Indian happy drinkers.
More good times and cheers!
