Suntory Beverage & Food (SBF), under the leadership of Makiko Ono, has announced an aggressive business plan, investing nearly US$2 billion to expand its product portfolio, penetrate international markets, and prioritize sustainable growth. The company aims to reach US$20 billion in revenue by 2024.
BANGKOK, Thailand – In a significant unveiling of Suntory Beverage & Food’s (SBF) business plan, the global beverage and food leader, Makiko Ono, President and CEO, outlined a clear vision to drive the organization towards sustainable growth and global expansion. This will be achieved through core strategies encompassing brand building, organizational transformation, promoting diversity, and operating with social and environmental responsibility.
Suntory ‘s Goal: “True Global Beverage Company”
The heart of SBF’s medium-term business plan is to become a “True Global Beverage Company.” Ms. Ono emphasized the importance of “delivering qualitative and uniquely SBF growth” based on four pillars:
- Brand: Strengthening core brands and continuously developing product innovations to meet evolving consumer needs.
- Transformation: Modernizing and streamlining the organization to support future growth.
- DEI (Diversity, Equity, and Inclusion): Promoting diversity, equity, and inclusion within the organization, creating a welcoming and accepting work environment.
- Sustainability: Operating with social and environmental responsibility, reducing environmental impact, and creating value for society.
Nearly $2 Billion Investment – Expanding Global Production Base
To achieve its growth targets, SBF has announced a major investment plan. It will increase its capital expenditure (CAPEX) by 1.5 times, from US$1.32 billion in 2021-2023 to US$1.98 billion in 2024-2026.
“We have many transformative initiatives, but I’d like to talk about expanding our production capacity. Specifically, we have a significant investment planned for the three years from 2024 to 2026. We aim to spend nearly US$2 billion on CAPEX to increase production capacity by building new factories or installing new production lines. And on the right, you can see examples. We are building a new factory in Vietnam, and in Thailand, we are expanding production capacity by installing two new production lines this year and next,” said Makiko Ono.
The investment will be distributed across various regions globally, with different objectives:
- Europe: Improving logistics systems to enhance transportation and distribution efficiency.
- Americas: Adding new production lines and expanding warehouses to meet growing market demand.
- Japan: Adding new production lines at the Shinano-no-Mori and Takasago plants.
- APAC (Asia Pacific):
- Vietnam and Thailand: Expanding production capacity to support growth in the Southeast Asian market, particularly in Thailand, where the Saraburi Plant serves as a key production base.
- Australia: Expanding production capacity and launching new product categories (RTD).
APAC as a Key Growth Driver – Thailand as a Stronghold
SBF places significant emphasis on the Asia Pacific (APAC) region, forecasting it to be a significant driver of the company’s growth. SBF targets sales growth in APAC of +9% from 2023-2026, exceeding the overall market growth forecast of +5~6%.
Thailand plays a vital role in SBF’s growth plan in the APAC region, serving as both a major production base and a high-potential market. With over 1,800 employees and four production plants in Chonburi, Rayong, and Saraburi, SBF Thailand generated revenue of 33.2 billion baht in 2024 and exports products to 17 countries worldwide.
Makiko Ono stated that Thailand is a large country. We have a joint venture with PepsiCo in Suntory PepsiCo Beverage (Thailand), and as I mentioned, the product category is expanding due to strong demand for products like TEA+ or BOSS Coffee. In addition, we have another company in Thailand, the Health Enrichment business, which we acquired in 1990, namely Brand’s Suntory.
“Both companies (Suntory PepsiCo Beverage (Thailand) and Brand’s Suntory) share an office, where we focus on product innovation based on consumer insights. We continue to invest in production efficiency. As I mentioned, expanding production capacity, and of course, we want more efficiency in the supply chain, and operational excellence is equally important. Growth in training and developing people in Thailand is also a very important mission for our business.”
Deep Dive into the Portfolio – Showcasing Global Brands
The Suntory Group has a diverse product portfolio spanning non-alcoholic beverages (Soft Drinks), alcoholic beverages (Alcohol Beverages), and other businesses.
In non-alcoholic beverages, SBF offers a wide range of products, including coffee (BOSS), tea (TEA+), sports drinks, carbonated soft drinks, energy drinks, fruit juices, and bottled water.
For alcoholic beverages, SBF offers beer (The Premium Malt’s), RTD (Ready-to-drink) beverages, whiskey (Japanese whisky, Bourbon, Scotch), liqueurs, cognac, and wine.
Additionally, the Suntory Group has other interesting businesses, such as health supplements (Sesamin), skincare products, restaurants, and a flower business.
Brand-Centric Strategy – Accelerating Innovation, Expanding Markets
SBF focuses on outperforming the market in all regions by employing a “Brand-Centric” strategy that emphasizes innovation for its core brands.
For coffee, the BOSS brand will spearhead global market penetration in Japan, Thailand, Australia, New Zealand, Vietnam, and the United States.
For tea, the TEA+ brand will be the flagship for marketing in Vietnam and Thailand.
For energy drinks, the “V” and Lucozade brands will be key players in Australia, New Zealand, the United Kingdom, Ireland, and the APAC region.
“Grow For Good” and “Give Back to Society” – Philosophy of Sustainable Business
Suntory is committed to operating with social and environmental responsibility, guided by the philosophies of “Grow For Good” and “Give Back to Society.”
In Thailand, Suntory has continuously implemented social and environmental projects and activities, including:
- One Suntory Mizuiku Water Education Program: Educating youth about water conservation.
- One Suntory Helping Hands: Supporting activities to assist communities and the underprivileged.
- Suntory PepsiCo Thailand’s “Bottle-to-Bottle Recycling”: Promoting sustainable plastic bottle recycling.
- Suntory Beverage and Food Thailand’s “BRAND’S Young Blood” Project: Supporting blood donation to help fellow human beings. Makiko Ono said that for the market trends in 2025, I see the Asia-Pacific region continuing to be a major growth driver for Suntory, as this region is highly dynamic and has great growth potential. Especially in Vietnam and Thailand, which are two of our important markets.
For Thailand, the overall situation should be good, but there may be some changes in consumer confidence, which we must be prepared to deal with. By offering new flavors, improving products, or developing various innovations. The important thing is that we must create and offer “real value” to consumers continuously because this is the main factor that will lead to our business success.
“We have set challenging growth targets in Asia-Pacific. Although the overall business environment may not be smooth, we have several plans to deal with various situations that may arise, including plans to develop innovations and launch new products continuously. Which will be an important factor in supporting our business growth.”
Under the leadership of Makiko Ono, Suntory Beverage & Food is moving towards becoming a truly global beverage company with a clear business plan, a strong strategy, and a commitment to sustainable business practices. This major investment will be a crucial step in creating long-term growth for SBF and creating value for all stakeholders.
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