Suntory boosts Japanese gin with ¥6.5bn investment

Drinks multinational Suntory is tapping into a growing demand for Japanese gin, upping its investment into the Suntory Osaka plant to total ¥6.5 billion (£34m). Suntory Spirits, the arm of the business that manages Suntory Group’s alcoholic beverage business in Japan, has announced it has increased its investment in gins and liqueurs. The company said on Tuesday (18 February) that it would invest an additional ¥1 billion to strengthen the gin category in Japan on top of a ¥5.5bn capital investment announced last year. Japan's gin market has grown approximately 3.5 times in size from 2019, according to the group. It is estimated to be worth ¥25bn as of 2024, based on retail prices including RTDs. Suntory's goal is to drive expansion of Japan's total gin market to reach ¥45bn by 2030.

Investment breakdown

Suntory's original ¥5.5bn capital investment was designed to increase production capacity of for its spirits and liqueurs between 2024 and 2025. The investment will enable the construction of the Osaka Spirits & Liqueurs Craft Distillery within the Suntory Osaka Plant site, and the introduction of new maceration tanks and distillation pot stills. New equipment will enhance the plant’s total production capacity by 2.6 times, and by twofold specifically for spirits and liqueurs. The Suntory Osaka Plant is a key production hub for Suntory's Japanese craft gin Roku, as well as its liqueurs. Suntory has been making gin since the launch of Hermes Dry Gin in 1936. Suntory's additional ¥1bn investment, announced this week, will go towards introducing a new visitor experience at the Osaka site. The newly-constructed Osaka Spirits & Liqueurs Craft Distillery will be opened to the public from spring 2026. The visitor experience will include seminar room equipped with a 360‐degree theatre and an indoor deck where visitors can overlook the new distillation pot stills. Suntory is not the only one betting big on Japanese gin. In June 2024, Pernod Ricard began construction on a new €25 million carbon-neutral distillery for its Japanese gin Ki No Bi, increasing production capacity for the brand by five times. Read more here.