The latest news, trends, analysis, interviews and podcasts from the global food and beverage industry

Suntory Spirits, the alcoholic beverage arm of the Suntory Group, has announced a substantial investment of ¥6.5 billion (approx. £34 million) in its Osaka plant, a production hub for spirits and liqueurs, including its flagship product, The Japanese Craft Gin Roku.

This investment aims to strengthen the company’s position in the gin category while responding to the rapidly growing market in Japan.

The investment comprises a ¥5.5 billion (approx. £28.7 million) capital infusion announced in the previous year, aimed at expanding production capacity and enhancing quality craftsmanship. An additional ¥1 billion will be allocated to improve visitor experiences at the plant, which is set to open to the public in spring 2026.

The capital investment will facilitate the construction of the Osaka Spirits & Liqueurs Craft Distillery within the existing plant. The facility will introduce new maceration tanks and distillation pot stills, which are expected to increase the plant's total production capacity by 2.6 times, with a twofold increase specifically for spirits and liqueurs.

This expansion is strategically timed to meet the rising demand for gin, which has seen Japan's gin market grow approximately 3.5 times since 2019, reaching an estimated value of ¥25 billion (approx. £130 million) as of 2024.

Suntory's additional investment of ¥1 billion will focus on creating a new visitor experience at the Osaka plant. The newly constructed distillery will feature a seminar room equipped with a 360-degree theatre, an indoor viewing deck overlooking the distillation process and a seasonal pathway highlighting the botanical essences used in Suntory's gin products.

These enhancements aim to deepen consumer engagement and educate visitors about the craftsmanship behind gin production.

Suntory Spirits has a long history in the gin sector, dating back to the launch of Hermes Dry Gin in 1936. The company is dedicated to producing high-quality domestic gin and promoting cocktail culture in Japan. With ambitions to expand the total gin market to ¥45 billion (approx. £234 million) by 2030, Suntory is positioning itself to capitalise on the growing consumer interest in premium spirits.

#SuntorySpirits #SuntoryGroup #Japan #gin #alcohol #spirits #investment