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Suntory commits to UK ‘for the long term’ despite NI hikes

Suntory Global Spirits has launched its first standalone commercial business in the UK. Its new managing director told Eloise Feilden why the market is key to global expansion despite recent tax rises on businesses.

Suntory commits to UK 'for the long term' despite NI hikes

“We’re in this for the long term,” Nick Temperley, managing director – UK, Ireland & Eastern Europe, told db about the new UK arm of the business.

Temperley expressed concern for the National Insurance rises due to come into force in April, describing them as “just another tax on businesses”. However, the new MD said the tax rise had had no negative impact on Suntory’s plans in the UK.

He said: “It’s not just [a tax] on Suntory as a business but it’s on small businesses, craft distillers, hospitality, retailers in particular. Anyone who employs a significant number of people is going to see that, and it’s going to add to their cost base at a time when it is tough out there; people do have a bit less disposable income. So yes it’s a concern.”

The increase to National Insurance has put significant strain on UK businesses. Fine Wine merchant Berry Bros. & Rudd announced significant redundancies across its business last week, citing the NI rise as a major factor.

Despite concern, Temperley said the Suntory’s long-term plans for the UK remain on track. “We have a business plan, and we’ve pretty much stuck to it, to be honest. It hasn’t changed dramatically in the last 12 months.”

The new commercial business sees Suntory significantly increase its employee base in the country, allowing for a “well-resourced organisation”, Temperley said.

“When you set up a business you have to have a longer-term view. We want ur brands to be here for generations to come, and that means that we have to set it up right at the beginning,” he said. “Obviously the market changes, but we’re in this for the long term. We have a very long-term view of what we want to do: we want to build categories and we want to build brands in the UK. To do that you need, first of all, really good people.”

Its UK team will be anchored in its central London head office, with additional capabilities in Scotland and in key locations across the country, the company has said.

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Suntory commits to UK 'for the long term' despite NI hikes

Temperley has brought together a “full-service team” for the UK commercial business, which spans the on- and off-trade; dedicated marketing teams aligned to brands and to channels and customers; team of brand ambassadors in London, the North of England and Scotland; and support function teams across supply, finance and HR.

Suntory announced plans to establish its own commercial business in the UK in March 2024.

Temperley said reasons for focusing on the UK market were threefold. “From the point of view of scale, local distillation and London as a global hub, those are the three reasons off the top of my head,” he said.

“The UK market is a really really big market for spirits when you look globally. When you’re looking at premium spirits and international spirits categories like gin, vodka and whisky, it’s probably the second largest market in the world, so it’s got real scale,” he explained.

The country is also home to a significant number of Suntory owned distilleries and production sites, including its Scotch brands Laphroaig, Bowmore, Ardmore, Auchentoshan, Glen Garioch and Ardray Scotch whiskies, as well as Sipsmiths craft gin distillery in London.

Suntory’s UK commercial business is now directly responsible for the sales, marketing and distribution of its locally-produced brands. It will also be responsible for representing Jim Beam and Maker’s Mark Bourbon, Hibiki and Yamazaki Japanese whisky and Roku gin in the UK market.

London, the nation’s capital, is the third reason for Suntory’s UK focus. “London as an international city is arguably the most important city in the world in terms of hospitality, drinking trends, bartenders, influential people in our industry,” Temperley said. “Because it is such an international city, trends start here and then they move to other countries. It’s full of amazing hotels, hospitality, luxury retailers, many of which start in London and then export their brands elsewhere.”

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