Strong sales and acquisitions have landed Japan's Suntory at 17th position on OC&C Strategy Consultants' just-released 14th annual Global 50 list of FMCG companies, which is based on 2015 FMCG revenue stated in the companies' annual reports.
Suntory, one of just three new entrants on the list, is not only the top Japan-based company but also the top Asia-based company.
The report notes that the company's sales of beverages and food increased by 9.7 percent, while sales of alcoholic beverages increased by 14 percent, and that Suntory's new appearance on the list is chiefly due to its 2014 acquisition of Beam, forming Beam Suntory.
The Beam acquisition helped counter slowing growth in the domestic market, which accounts for two
thirds of sales, the report authors note. Suntory is now the world’s third largest distiller, has a strong foothold in the US market and seems on track to achieve its 2020 target of $19 billion in sales, they added.
Suntory is also taking advantage of the trend in Asia towards ready-to-drink alcohol and soft beverages, by investing heavily in this sector, where there is strong forecast growth in the short
and medium term, the report said.
Other Japanese companies on the Global 50 are
- Japan Tobacco at 20 (-4 spots from the prior year)
- Kirin Breweries at 27 (-6)
- Asahi Breweries at 28 (-2)
- Kao at 37 (+1)
- Nippon Meat Packers at 39 (+3)
Just missing the top 50 list were
- Yamazaki Baking at 51
- Shiseido at 58
The full report from OC&C goes into detail on trends impacting FMCG companies worldwide and in specific markets including China. For example, the report notes that the Global 50 continue to lose market share to more nimble local 'Davids' in emerging markets but also in mature western territories.