Suntory Plans to Double Gin Production at Its Osaka Plant; Growth Potential for Domestic Gin Market High Compared with Overseas
2:00 JST, February 14, 2024
Suntory Spirits Ltd. will spend about ¥5.5 billion to upgrade and expand its plant in Osaka and double its gin production capacity, the beverage company has announced.
Gin is a distilled liquor that is cheaper than whisky. It has been gaining popularity as a drink that easily complements a variety of dishes. Suntory aims to more than double its 2023 domestic sales of gin to ¥34.5 billion by 2030.
The Osaka plant, which began operating in 1919 and is the oldest of Suntory’s existing plants, produces spirits, liquors, whisky, and a catalog of other beverages. Suntory plans to rebuild this facility in stages and to replace four distillation stills as part of the project to boost production capacity and improve the quality of its gin.
Gin, which originated in Europe, is a spirit made from grains including corn and barley. Amid the ongoing whisky shortage, demand in Japan for gin has been growing among people seeking a cheaper alternative to drink with meals.
Suntory has been pouring resources into making gin. Since launching its high-end Roku gin in 2017, the company has been at the forefront of developing new market opportunities. According to Suntory, the domestic gin market in 2023 reached ¥21.1 billion, about triple its size in 2017.
Nikka Whisky, a brand under the umbrella of Asahi Breweries, Ltd., and other makers have also been producing and selling gin mainly for commercial use. The popularity of craft gin, which is made in small volumes, has also been growing.
Despite this, the domestic gin market still has considerable room for growth when compared with markets overseas. The global gin market is reportedly about one-sixth the size of the global whisky market, but in Japan, the gin market is barely one-twenty-fifth that of the whisky market.
In a bid to expand this market, Suntory in December began selling cans of its mainstay Sui gin mixed with soda. On Feb. 20, a limited-edition version of Roku flavored with sakura cherry blossoms and leaves will hit the shelves.
“I’m certain that the gin market will grow even further,” Suntory Spirits Executive Officer Daisuke Tsukahara said at a strategy briefing session Wednesday.
"Business" POPULAR ARTICLE
-
Core Inflation in Tokyo Accelerates in November
-
Nissan President Uchida Facing Hard Time on 5 Years After Taking Office; Future of Nissan Uncertain
-
China’s New Energy Vehicles Dominating Domestic Market; Japanese, European Automakers Losing Ground
-
CPTPP Will Let Britain Offer Further Benefits to Japan, Says U.K. Ambassador, Days Before Her Country Joins Pact
-
Federal Appeals Court Upholds Law Requiring Sale or Ban of TikTok in U.S.
JN ACCESS RANKING
- Core Inflation in Tokyo Accelerates in November
- China to Test Mine for Rare Metals Off Japan Island; Japan Lagging in Technologies Needed for Extraction
- Record 320 School Staff Punished for Sex Offenses in Japan
- Miho Nakayama, Japanese Actress and Singer, Found Dead at Her Tokyo Residence; She was 54 (UPDATE 1)
- Immerse Yourself in Snoopy’s World Ahead of Comic Strip’s 75th Anniversary Next Year; Renovated, Refreshed Museum Features Original, Reproduced Comic Strips, Vintage Merchandise