Sun | Press release | Suntory Wine International Limited Business Strategy for 2022

While the overall Japanese wine market in 2021 is estimated to have fallen below year-ago levels, sales of Suntory Wine International Limited^*1 exceeded that of 2020. This was driven by strong sales of occasional Japanese wines such as our Mutenka series clutches, and our Suntory Wine Sour 350mL Can, released in February as part of our efforts to create new demand, and a significant increase in sales of our Italian organic wine Organic Tavernello.

In 2022, we will offer a variety of new customer-oriented products based on market changes and consumer needs in recent years. Specifically, we will use Suntory Tomi no Oka Winery as a source of Japanese wine communication, provide new ways to drink wine to make it more accessible, and meet the varied needs of our customers using our strengths in Monozukuri. In addition to initiatives for existing customers who regularly drink our wine, we will also strengthen efforts to attract new customers to Suntory wine.

*1: Includes sales volume of Iwanohara Vineyard Co., Ltd. and Fwines Co., Ltd.

2021 review
Japan wine
Sales volume^*2 of Japan Wine increased by 4% over the previous year. In particular, there has been significant growth in sales of our Tomi no Oka Vineyard and Premium Japan series thanks to their highly acclaimed flavors, a result of our rigorous quality management processes.

*2: Includes sales volume of Iwanohara Vineyard Co., Ltd.

Japanese Casual Wine
The sales volume of our Japanese Casual Wine increased by 2% compared to the previous year. Total sales of Mutenka clutches the series was at the level of the previous year, with 2.38 million cases^*3 sold, and the brand maintained its position as the best-selling wine in Japan^*4. The new Toshitsu with 30% less^*5 version of our Wine Sankaboshizai Mutenka no Oishii, which we launched in August as part of a growing awareness of the importance of health, has been welcomed by our customers as a way to enjoy delicious wine while reducing sugar consumption. Our Suntory Wine Sour 350mL Can, which launched in February, has been well received for its refreshing flavor that pairs well with a variety of meals and as a casual new way to enjoy wine mixed with sparkling water. Due to its popularity, we have revised our full year sales target upwards to 350,000 cases.^*6 in March, about a month and a half after the product launch, which we also did.

*3: 12 x 720ml bottles in each case

*4: *According to Intage SRI. Wine sales volume in the Japanese market from January 2021 to December 2021 (the total of all Japanese liquor SM/ CVS/ DS/ visitor centers/ pharmacies/ liquor stores/ commercial liquor stores)

*5: Carbohydrates without dietary fiber

*6: 24 boxes of 350 ml each

Imported wines
The total volume of imported wine sales declined year-on-year due to the COVID-19 pandemic, with extended stay-at-home demands severely impacting the door-to-door sales market. On the other hand, organic wines performed well, with sales of our Italian organic wine Organic Tavernello increasing significantly, mainly for domestic consumption.

Strategy for 2022
The wine market is changing due to lifestyle changes in recent years. A growing number of young consumers are choosing to drink wine and sales of expensive wines are increasing, with more and more people wanting to improve their time at home and, with fewer opportunities to dine out, trying to new wines at home. In line with these developments, we communicate the charms of wine to different clienteles. Additionally, in addition to initiatives for existing customers who regularly drink our wine, we are strengthening our efforts to attract new customers to Suntory wine products.

Japan wine
With a growing market and an increasing number of wineries, the environment surrounding our Japan Wine products is changing dramatically. Wine is one of Suntory Group’s founding businesses, and so with a desire to stand at the top of the Japanese wine industry, we will continue to engage in environmentally and socially sustainable winemaking. In addition, we will strive to develop and nurture winery-led brands, increase and strengthen our customer touch points through online and other mediums. In 2022, we will focus on communicating the charms of our Japanese wine through Suntory Tomi no Oka winery, through real touchpoints such as factory tours and online touchpoints such as e-commerce.
We will also maximize the synergy between our wineries in Japan and Europe. To do this, we will share and exchange our oenological know-how with our Château Lagrange.^*seven winery in Bordeaux, and aim to create an even higher quality wine.

*7: The Château Lagrange winery is a prestigious Château Saint-Julien in the Médoc region of Bordeaux, France. In 1983, Suntory became the first non-European company to participate in the management of the winery, making proactive capital investments to improve the estate – replanting vineyards, renewing winemaking facilities, repairing the building and the estate’s symbolic gardens. , etc Suntory has also reviewed the cultivation and fermentation processes, building and strengthening a quality improvement system. Today, the winery continues to create wines of exceptional quality based on its unique winemaking philosophy: Maximizing the benefits of the terroir through harmony between man and nature.

Create a new request
By strengthening our offer of small wines in cans, we will offer attractive and accessible products for a new clientele. We will also use our manufacturing strengths to create new demand and develop delicious, high-quality products with the unique appeal of wine.
Following the success of the Suntory Wine Sour 350mL Can went on sale in February last year, in February this year we will launch the new Suntory Wine Cafe Brand. At the same time, we will launch two new products: Suntory Wine Coffee Wine Soda (Red) and Suntory Wine Coffee Wine Soda (White). While continuing the concept that wine can be enjoyed casually with sparkling water, we will discard the term Sour and communicate the calls of wine soda.
In the non-alcoholic beverage market, which continues to grow along with the diversified needs of customers, in March we will launch our new canned wine flavored non-alcoholic beverage. Non-alcoholic wine holidays. By combining the manufacturing strengths we’ve developed through our Japanese Casual Wine and the taste-creating technologies we’ve accumulated in-house, we’ve created a true sparkling wine flavor that bursts with fruity aromas, delivers depth unique to use. of wine essence, and which leaves a lingering aftertaste. To coincide with the product launch, Wine Business will air a television commercial for the first time in 10 years to refresh the product and, at the same time, expand the non-alcoholic beverage portfolio of the nation’s liquor business. Suntory group.

Japanese Casual Wine
For our Japanese Casual Wine, in addition to continuing our efforts to accurately understand our customers’ needs, we will use our manufacturing strengths, i.e. our expertise in sourcing, fermentation, blending and other areas of winemaking, to deliver delicious, high-quality wines that match our customers’ tastes. At the center of our activities will be our Mutenka series clutches. While our sales target for 2027 is 4 million cases, we aim to sell 2.55 million cases in 2022, which will mark a 7% increase over the previous year.

Imported wines
To meet the growing demand for our premium wines in Japan, we are going to renew the packaging of Domaines Barons de Rothschild Saga R Bordeaux, and aim to communicate the traditions and position of the Domaines Barons de Rothschild Lafite^*8 Brand.
For our standard wines, we will launch the Tavernello organic sparkling wine wine from our popular Organic Tavernello brand and aim to revitalize the organic wine market through a diverse range of Organic Tavernello some products.
In addition to bringing a feeling of luxury and total satisfaction to the wines consumed daily, we will again launch two types of Santa Claus Gold from Santa Claus by Santa Carolina series.

*8: A wine group in the Médoc region of Bordeaux, France, established in 1868. Lafite owns the Château Lafite-Rothschild vineyard, which frequently leads the Premier Cru Classe classification which represents the highest level of red wine in the Médoc region. Suntory signed a special business agreement with Lafite in 1985.