Suntory Beverage & Food Limited
2587・Prime Market・Foods
Business
Suntory Beverage & Food Limited is the core company of the beverage and food segment of Suntory Holdings, engaged in the manufacture and sale of soft drinks and health foods both domestically and internationally. In Japan, the company operates core brands including "Suntory Tennensui" (natural mineral water), "BOSS," "Iyemon," and "Tokucha." In Europe, it handles "Orangina," "Schweppes," "Lucozade," and "Ribena"; in Asia Pacific, "Sting," "TEA+," "BRAND'S," and "V"; and in the Americas, it runs Pepsi-brand bottling operations. Comprising the parent company, 62 subsidiaries, and 8 equity-method affiliates, the company is a truly global beverage enterprise with revenue of ¥1,715,438 million for FY2025 (ending December 2025).
Business Model
The company combines in-house developed brands with licensed brands from PepsiCo, Starbucks, and others, delivering products to consumers through manufacturing and sales subsidiaries in each region. In Japan, it utilizes mass retailer, convenience store, and vending machine channels, while overseas, local joint ventures and subsidiaries handle manufacturing and sales. It has a structure that secures earnings through unit price improvement via price revisions and product mix enhancement, combined with thorough cost management.
Company Strengths
Revenue is diversified across four regions: Japan 43%, Asia Pacific 23%, Europe 23%, and the Americas 11%. Consolidated revenue for FY2025 (ending December 2025) was ¥1,715,438 million. The company has a structure with low dependence on any single region, allowing it to diversify geopolitical and economic cyclicality risks.
The Europe segment posted revenue of ¥390,762 million and segment profit of ¥61,559 million, achieving a profit margin of 15.8%, the highest among all segments. An established brand portfolio including "Lucozade," "Ribena," "Orangina," and "Schweppes," combined with rigorous cost management, supports this high profitability.
The cashless vending machine app "Jihanpi" reached 15 million downloads as of the end of December 2025. The company is advancing digitalization of the vending machine channel to expand customer touchpoints and driving structural reform of the vending machine business, contributing to strengthening the earnings base of the Japan business.
ENVALITH's Perspective
Performance Trend
Revenue over the past five periods grew from ¥1,268,917 million in FY2021 to ¥1,715,438 million in FY2025, achieving growth of over 35% across the five years. However, in FY2025, operating profit declined to ¥148,739 million (down 7.2% year on year) due to higher raw material costs and weakness in Asia. In Q1 of FY2026 (ending December 2026), revenue accelerated to ¥406,867 million (up 11.2% year on year), but operating profit was essentially flat at ¥27,238 million (down 0.2% year on year). Externally, elevated raw material prices and logistics costs have persisted, and combined with higher in-house marketing expenses, this has delayed improvement in profit margins. The full-year forecast remains unchanged at revenue of ¥1,826,000 million (up 6.4% year on year) and operating profit of ¥155,000 million (up 4.2% year on year).
Growth Strategy
Under the medium-term management plan launched in 2024, the company is advancing four pillars: brand strategy, structural reform, DEI, and sustainability.
Continuing active marketing activities for core brands such as Suntory Tennensui, BOSS, and GREEN DA·KA·RA, achieving sales volume growth exceeding the market. Japan business revenue for Q1 of the fiscal year ending December 2026 grew 4.9% year on year, outpacing growth in the overall beverage market, with the new product "Guilty Tansan NOPE" and "Tokusui" also contributing to strong performance.
Implemented an organizational change in the overseas business effective January 1, 2026, splitting the former "Asia Pacific Business" into "Asia Business" and "Oceania Business." The shift to a five-segment structure aims to accelerate transformation and decision-making speed in each region. In the Oceania Business, RTD alcoholic beverages have been launched in New Zealand, promoting category expansion.
Plant reorganization is underway in the European business. One-time costs have been incurred, resulting in a 5.6% year-on-year decrease (15.5% decrease on a currency-neutral basis) in segment profit for Q1 of the fiscal year ending December 2026, but this is positioned as an initiative aimed at improving the cost structure and profitability over the medium to long term. In the UK and Spain, revenue-increasing effects from price revisions and expansion of the product portfolio have been confirmed.
There has been no revision to the full-year earnings forecast for the fiscal year ending December 2026 since the announcement on February 12, 2026. The policy of achieving both volume growth and profit growth through value creation across all segments is being maintained even amid a highly uncertain environment. To achieve the full-year operating profit target of ¥155,000 million (up 4.2% year on year), improved profitability in the second half is required.
Last updated: July 17, 2026