Suntory chairman Takeshi Niinami resigns after police search
Suntory has been plunged into uncertainty after the shock resignation of chairman Takeshi Niinami (left). His departure follows a police search linked to alleged illegal cannabis supplements, which he denies.
The world’s third-largest premium spirits maker, Suntory, has been rocked by the sudden resignation of its chairman and driving force, Takeshi Niinami.
His resignation came amid reports that police had searched his home in relation to possession of illegal cannabis supplements, which it is said were purchased overseas. Local media reports that Niinami denies the allegations.
Suntory’s global expansion under Niinami
Niinami has been the dynamo behind Suntory’s expansion in the premium drinks sector over the past decade. The first non-family member to head Suntory, he directed the successful integration of Jim Beam following the US$16bn takeover in 2014.
He has also overseen Suntory’s drive into the rapidly expanding global ready-to-drink market, which IWSR forecasts will more than double its 2019 share of total beverage alcoholic servings by 2028.
The RTD sector carries some of the highest margins in the alcohol market and Suntory executives say that the company intends to be the leading player.
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Oceania investment signals ambition
Earlier this year, the group launched Suntory Oceania, its US$2bn multi-beverage category tie-up in Australia with Frucor Suntory.
Its manufacturing and distribution site, on the outskirts of Brisbane, is capable of producing “20 million cases per annum at start-up” and has the capacity to expand to 50 million cases in the future.
A high-profile Japanese business leader
Apart from his successful tenure at Suntory Niinami, he has been one of Japan’s most high-profile executives, featuring prominently in business relations with the US and chairing one of Japan’s main business groupings, the Japan Association of Corporate Executives.
Over the past two years, Suntory has restructured its leadership under a “top-two” system, appointing Nobuhiro Torii (right) as president and Niinami as chairman and CEO, as reported by the drinks business. This was designed to preserve continuity while fostering innovation, a critical balance for a firm still 90% owned by the founding Torii family.
Torii responds to investigation
Torii told a hastily summoned press conference that the board thought the police investigation needed to be concluded before it could decide on Niinami’s future. But he also said the directors felt that “paying due care” was “indispensable” when buying supplements.
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