2015 Strategies for Core Brands in Japan

January 22, 2015

Suntory Beverage & Food Limited

©2014 SUNTORY BEVERAGE & FOOD LIMITED. All Rights Reserved.

©2014 SUNTORY BEVERAGE & FOOD LIMITED. All Rights Reserved.
 Japan Soft Drink Sales Volume Performance

(100 million cases) 415 million cases

4.5 in 2014
Total market (0% growth YoY)
4.0
shrank 2% YoY
3.5 (estimate) in
2014
3.0

2.5

2.0

1.5

1.0 Sales volume in soft drink business in Japan

0.5 rose year-on-year for 22 straight years
0.0
1
1992 ‘93
9 ‘94
9 ‘95
9 ‘96
9 ‘97
9 ‘98
9 ‘99
9 2
2000 ‘01
0 ‘02
0 ‘03
0 ‘04
0 ‘05
0 ‘06
0 ‘07
0 ‘08
0 ‘09
0 ‘10
1 ‘11
1 ‘12
1 ‘13
1 ‘14
1
9 3 4 5 6 7 8 9
0 1 2 3 4 5 6 7 8 9 0 1 2 3 4
9 年 年 年 年 年 年 年
0 年 年 年 年 年 年 年 年 年 年 年 年 年 年
* Results for Suntory’s soft drink sales volume in Japan
2 0
年 年
©2014 SUNTORY BEVERAGE & FOOD LIMITED. All Rights Reserved.
2014 Performance for Core Brands in Japan

(Million cases)

FY2014 YoY

Suntory Tennensui 83.0 +11%

(Mineral Water)
BOSS 88.1 +6%
Total growth for
Iyemon 52.6 +1% core brands
5% YoY
Pepsi 29.9 -2%
Suntory Oolong Tea 29.5 -10%
GREEN DAKARA 23.6 +21%
Orangina 9.5 +6%

Total for FOSHU products 24.5 +45%

Total soft drink in Japan 415.0 +0%

©2014 SUNTORY BEVERAGE & FOOD LIMITED. All Rights Reserved.

 2015 Strategies for Core Brands in Japan

Creating new demand

◇ Propose products with new value

◇ Nurture & expand products with high added value
Suntory FOSHU
BOSS
Tennensui products

©2014 SUNTORY BEVERAGE & FOOD LIMITED. All Rights Reserved.

2015 Strategies for Key Brands in Japan
Brand & Innovation Strategies

Further strengthen
Extremely fine coffee grounds
brands

Create a positive Organic orange juice

Quercetin glucoside

chain reaction to
accelerate growth
Advertising Technological
innovations innovations

©2014 SUNTORY BEVERAGE & FOOD LIMITED. All Rights Reserved.

 2015 Strategies for Core Brands in Japan

Accelerate nurturing &

expansion of products Create new demand
with high added value

Aggressive investment in medium/long-term R&D,

brand marketing, and production facilities
<Ongoing activities> <Major focus> New categories
7 core brands & FOSHU products
New brands
Suntory Tennensui / BOSS / FOSHU

New New
product product

Brand & innovation strategies

©2014 SUNTORY BEVERAGE & FOOD LIMITED. All Rights Reserved.

2015 Plan for Core Brands in Japan

(Million cases)

Fy 2015 YoY

Suntory Tennensui 85.4 +3%

(Mineral Water)
BOSS 89.5 +2%
Iyemon 52.9 +1%
Pepsi 30.1 +1%
Suntory Oolong Tea 25.8 -13%
GREEN DAKARA 26.6 +13%
Orangina 11.8 +24%

Total for FOSHU products 26.7 +9%

Total soft drink in Japan 417.4 +1%

©2014 SUNTORY BEVERAGE & FOOD LIMITED. All Rights Reserved.

 Suntory Tennensui Brand Strategy

“Clear and tasty” & “natural and healthy”

Suntory Tennensui nurtured by the
Suntory Tennensui abundant nature in the Minami-Alps
(water source)
Strengthen correlation with

Sparkling water Flavored water New category

Promote taste Fully promote taste by
+ lifestyle recommendations advertising natural ingredients
and production method

New product

©2014 SUNTORY BEVERAGE & FOOD LIMITED. All Rights Reserved.

 BOSS Brand Strategy
Further strengthen BOSS brand and
tackle challenge of creating a premium lineup

Fully strengthen/nurture
brand in existing areas Develop new growth areas

Launch
Continue to strengthen PREMIUM BOSS Expand lineup
mainstay products BLACK

New product

Bottle-shaped
can
©2014 SUNTORY BEVERAGE & FOOD LIMITED. All Rights Reserved.
March 10 launch PREMIUM BOSS BLACK

･ Concept
Evolve premium bottle-shaped
canned coffee BLACK from
“premium body” PREMIUM BOSS
offering the richest flavor.
Developed through advances in
PREMIUM BOSS production
method and discriminating roasting
･ Suggested retail price (excluding tax)

300g can: ¥130

400g can: ¥140
･ TV commercial

Plan new creative advertising from

day of launch

©2014 SUNTORY BEVERAGE & FOOD LIMITED. All Rights Reserved.

 FOSHU drink Category Strategies
Continue to grow in FOSHU drink market by further developing
IyemonTokucha, revamping Suntory Black Oolong Tea, strengthening
categories under development, and with various marketing measures

Full-fledged development Marketing measures that

Category
/strengthening of Tokucha and match product
expansion
Suntory Black Oolong Tea characteristics

New product

Iyemon Tokucha Suntory Black Oolong Tea Goma Mugicha Pepsi Special Boss Green

©2014 SUNTORY BEVERAGE & FOOD LIMITED. All Rights Reserved.

 Iyemon Tokucha Communication Message
January communication message
April– New communication message

*Schedule may be changed.

Mass injection of new ads from January 1st!

New communication to be deployed seamlessly from April onward
©2014 SUNTORY BEVERAGE & FOOD LIMITED. All Rights Reserved.
 New Look for Black Oolong Tea from March 17th!

Major package Major advertising

Improved content
changes changes
After ・Tea leaves offering
Coming Soon a smooth taste newly
Before
Sharply incorporated
Details will be disclosed at a ・Enhance rich aftertaste
boost later date. Currently negotiating ・Boost feeling that fat is
Consumer with people to appear in ads. being cleanly washed
purchase intent
away

©2014 SUNTORY BEVERAGE & FOOD LIMITED. All Rights Reserved.

 Other Core Brand Strategies

Iyemon Suntory Oolong Tea Pepsi

Renew Renew
Iyemon Promote bottle
Fully compatibility
develop with meals Forever
Tokucha Challenge

GREEN DAKARA Orangina

First launch in the

Fully develop GREEN world of Lemongina,
DAKARA Yasashii a new product
Mugicha(barley tea) developed using SBF
R&D technologies

©2014 SUNTORY BEVERAGE & FOOD LIMITED. All Rights Reserved.

Lemongina March 31st Launch
Japan is the first market in which
Lemongina is to be launched!
A real carbonated lemon beverage
Concept that offers the enjoyment of
the fresh taste of lemon

Full-bodied aroma of real lemons by using a

proprietary technology to yield extract from peels!

Container /
1.2 liter PET bottle/420 ml PET bottle
volume

Suggested
1.2 liter PET bottle: ¥320
retail price
420 ml PET bottle: ¥140
(excluding tax)

TV Scheduled to inject new creative

commercials advertisements prior to launch

©2014 SUNTORY BEVERAGE & FOOD LIMITED. All Rights Reserved.

©2014 SUNTORY BEVERAGE & FOOD LIMITED. All Rights Reserved.