Suntory Embarks on a $36 Million Journey to Double Gin Production
Suntory Spirits Ltd. announces plans to invest approximately $36.5 million to double its gin production capacity. (Photo: Roku Gin)
Suntory Spirits Ltd. is poised for substantial growth in Japan’s burgeoning gin market, with plans to invest approximately ¥5.5 billion (about $36.5 million) in upgrading and expanding its Osaka plant. As reported by Japan News on Wednesday, the company aims to double its gin production capacity by 2030, eyeing a sales target of ¥34.5 billion ($229 million).
Suntory, a prominent beverage company renowned for its premium whiskies like Yamazaki and Hakushu, extends its distilling expertise to craft Roku Gin. Released in 2017, the juniper spirit is made with a blend of two types of green tea, sansho pepper, yuzu, cherry blossoms and cherry leaves.
Operating since 1919, the Osaka plant is Suntory’s oldest facility and is poised for phased reconstruction. According to Japan News, this process will include the strategic replacement of four distillation stills, with the dual objective of enhancing production capabilities and elevating the quality of the gin. The move comes amidst rising demand for gin in Japan, driven partly by a shortage of whisky and the perception of the spirit as an affordable and versatile beverage.
Japan News noted that in 2023, the domestic gin market in Japan reached ¥21.1 billion, tripling its size from 2017. Other players in the industry, such as Nikka Whisky, are also contributing to the surge with its Nikka Coffey Gin. Globally, the size of the gin market is claimed to be one-sixth that of the whisky market. However, in Japan, the gin market is only about one-twenty-fifth the size of the whisky market, per the report.
“I’m certain that the gin market will grow even further,” said Suntory Spirits Executive Officer Daisuke Tsukahara.
Recognizing the surging popularity of gin, Kirin Holdings Company, another Japanese spirit producer, has recently taken substantial steps to expand the reach of its craft offering. Just this Tuesday, the beer giant revealed the broader availability of Yatsu Boshi Japanese Craft Gin in key markets, such as Singapore, Malaysia, South Korea and Australia. As part of this move, Kirin highlighted an impressive 40% rise in global gin sales from 2018 to 2022.
Near the end of January, Suntory announced it will be adding a new Roku Gin expression to its range. Aspiring to capture the energy of Japan’s cherry blossom season, the limited-edition offering is made with sakura blossoms said to be harvested at the “peak of their vibrancy.”
Read next:
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