After a $16-billion whiskey binge, Suntory Holdings Ltd is keeping its wallet in its pocket.
Suntory, Asia’s biggest-spending beverage acquirer over the past five years, plans to hold off on buying overseas companies for three years, President Takeshi Niinami said in an interview.
The company hired Niinami from convenience-store operator Lawson Inc. in October, as Japan’s shrinking and aging population compels it to look abroad for growth.
Suntory’s $16-billion purchase of US spirits maker Beam Inc. last year has helped raise the portion of revenue from overseas, while boosting debt and causing its credit rating to drop.
“It’s too early,” Niinami said when he was asked about further cross-border acquisitions. “We can’t be a global player unless the Beam deal turns out [to be] successful.”
Niinami said that he wants to be more than just a player. He is aiming to become the world No. 1 in hard liquor and soft drinks, meaning: he’ll have to overtake Diageo Plc in spirits and companies like PepsiCo Inc., Coca-Cola Co. and Nestlé SA in non-alcoholic drinks.
Adding Beam, maker of Jim Beam bourbon, Canadian Club and Maker’s Mark whiskey, makes Suntory the world’s sixth-largest spirits maker by 2013 volumes, overtaking Bacardi Ltd, according to research firm Euromonitor International Ltd.
Niinami said that he’s working on integrating Beam, whose US distribution network gives Suntory wider access to the growing market for whiskey. At home, the company’s soft-drinks unit is looking into whether to purchase Japan Tobacco Inc.’s vending-machine business, the executive said, adding that he will leave the decision with the subsidiary.
Bloomberg News, edited by ESM
