Suntory strikes mega-deal in Australia and NZ
Beam Suntory and Frucor Suntory have struck up a AU$3 billion partnership to make, sell and distribute premium spirits and alcohol-free drinks in Australia and New Zealand.
The two beverage companies have joined forces under new name Suntory Oceania to create the fourth-largest drinks group in the ANZ market.
Suntory Oceania will oversee the manufacturing, sales, and distribution for its portfolio of 40 leading drinks brands including Jim Beam, Maker’s Mark, Hibiki Japanese Whisky, and Canadian Club Whisky.
On the alcohol-free side, juices, soft drinks and sports drinks including, Orangina, Lucozade and Ribena, will reach the ANZ market through Suntory Oceania, as well as coffee and water brands.
The merger represents the largest single Fast Moving Consumer Goods (FMCG) investment in Australia in more than a decade, and will include the construction of a new AU$400 million, net zero facility in Queensland, with the ability to produce 20 million cases.
The new business is expected to be fully operational by mid-2025 in Australia and by 2026 in New Zealand.
“This collaboration demonstrates our belief in the growth potential of the Australian and New Zealand markets,” said Mark Hill, managing director of Beam Suntory Oceania.
“When other businesses are pulling back, we are forging ahead, bringing Suntory’s spirit of bold ambition to life.”
Darren Fullerton, CEO, Frucor Suntory added: “This new venture is all about bringing the best of Suntory to Oceania. With the ability to accelerate our growth trajectory, we strongly believe it will redefine market dynamics and offer more consumer beverage moments from sunrise to sunset, unlocking innovation for our customers across retail and hospitality industries.”
The vision for the new Queensland site includes 14km of solar panels, a biomass boiler and sustainable, state-of-the-art production equipment.
Around 400 jobs will be created as a result of the partnership.
Founded in 1899 in Osaka, Japan, Suntory Group operates throughout the Americas, Europe, Africa, Asia, and Oceania, with an annual revenue (excluding excise taxes) of US$20.2 billion in 2022.