Global drinks maker Suntory aims to sell local to avoid tariffs, president says

The company's soft drinks are mainly produced in their destination markets, but spirits such as tequila must be made in specific locations and are more vulnerable to excise duties, Torii said. That means making bourbon for the American market in
"We will produce and try to sell locally," said Torii, who took over as president at the closely held consumer conglomerate on
U.S. President Donald Trump revealed on Wednesday a broad set of new tariffs on trading partners, including a larger-than-anticipated 24% levy on Japanese goods. Trade Minister
The trade rift presents a dilemma for Japanese companies like Suntory, which has spent decades expanding its global footprint as a hedge against an ageing, shrinking consumer market at home.
Suntory spent
As for disruptions from tariffs, Suntory is somewhat protected by the defensive nature of the drinks sector, Torii said.
"People become thirsty when it's hot, and people want to drink beer for relaxing," he said. "Of course, business and the economy itself is possibly becoming more volatile, and there might be a trade war, but still we have to manage that."
As Trump has ramped up tariff rhetoric in recent months, Suntory shipped extra supplies of tequila from its Mexican factories into the U.S. to get in before the excise increases. The company is also considering shifting sales of Scotch whiskies to
Suntory founder
As president, he succeeds Takeshi Niinami, who in 2014 became the first person outside of the founding family to run the group. Niinami, one of
Niinami last year said Suntory could be in the market for an overseas purchase on the order of
By contrast, Torii said he's more focused on investing in Suntory's existing brands, and has no acquisition candidates in mind.
"It's very easy to say that
(This story has been refiled to cut the extraneous word 'for' before 'domestically' in paragraph 3)
(Reporting by
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