Japanese giant eyes US$150m Arkay stake

One of Japan’s largest spirits firms is in advanced talks to invest $150 million in Arkay Beverages, the France-born alcohol-free drinks company. The deal would value Arkay at US$1.5 billion and marks a pivotal moment in the evolving zero-alcohol category. Arkay Beverages, the self-styled pioneer of alcohol-free spirits, has announced it is in “advanced discussions” with a major Japanese drinks company regarding a US$150 million investment, as per its statement released on 17 June. The proposed deal would give the investor a 10% equity stake and value the business at a notable US$1.5 billion. While Arkay did not name the suitor, the description, “one of Japan’s largest spirits companies”, has prompted widespread industry speculation that it is likely to be Suntory Holdings, as reported by Global Drinks Intel. Suntory recently created a dedicated “Alcohol-Free Business Department” and announced a series of domestic investments, including a US$43 million expansion of its gin production in Japan earlier this year. According to Food Business Africa, Arkay views the potential investment as strategically significant, not least for the access it provides to the broader Asian market.

A zero-proof player with global ambitions

Founded in 2011 by Reynald Vito Grattagliano, Arkay Beverages claims to have sold over 10 million bottles of its alcohol-free spirits in 2024 alone. Its portfolio now spans more than 35 markets, and its product range mirrors traditional spirits, including whisky, rum and gin, but with 0.0% ABV. In its 17 June statement, Arkay said that proceeds from the investment round would support marketing campaigns, new product development (including functional and adaptogenic beverages), and accelerated international expansion across North America, Europe, the Middle East and Asia. This would position Arkay as a first mover in several key territories, particularly those where cultural or health-related abstinence from alcohol supports demand for credible alternatives.

Context and category growth

The investment comes as the alcohol-free category matures from niche status into a growth engine within the wider drinks market. According to IWSR research, the no and low alcohol segment is forecast to grow at a compound annual rate of over 6% in key markets through 2027, with zero-alcohol options leading that rise. Arkay’s US$1.5 billion valuation would place it among the highest-valued brands in the category to date, well above Diageo-backed Seedlip or Lyre’s, both of which have until now set the pace. Arkay’s strategy includes aggressive positioning as a “category leader” with a mission to redefine social drinking.