2015 Strategies for Core Brands in Japan. January 22, 2015 Suntory Beverage & Food Limited
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1 2015 Strategies for Core Brands in Japan January 22, 2015 Suntory Beverage & Food Limited
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3 Japan Soft Drink Sales Volume Performance (100 million cases) Total market shrank 2% YoY (estimate) in million cases in 2014 (0% growth YoY) Sales volume in soft drink business in Japan rose year-on-year for 22 straight years 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
4 2014 Performance for Core Brands in Japan FY2014 (Million cases) YoY Suntory Tennensui (Mineral Water) % BOSS % Iyemon % Pepsi % Suntory Oolong Tea % GREEN DAKARA % Orangina % Total growth for core brands 5% YoY Total for FOSHU products % Total soft drink in Japan %
5 2015 Strategies for Core Brands in Japan Creating new demand Propose products with new value Nurture & expand products with high added value Suntory Tennensui BOSS FOSHU products
6 2015 Strategies for Key Brands in Japan Brand & Innovation Strategies Further strengthen brands Extremely fine coffee grounds Create a positive chain reaction to accelerate growth Organic orange juice Quercetin glucoside Advertising innovations Technological innovations
7 2015 Strategies for Core Brands in Japan Accelerate nurturing & expansion of products with high added value Create new demand Aggressive investment in medium/long-term R&D, brand marketing, and production facilities <Ongoing activities> <Major focus> 7 core brands & FOSHU products Suntory Tennensui / BOSS / FOSHU New categories New brands New product New product Brand & innovation strategies
8 2015 Plan for Core Brands in Japan Fy 2015 (Million cases) YoY Suntory Tennensui (Mineral Water) % BOSS % Iyemon % Pepsi % Suntory Oolong Tea % GREEN DAKARA % Orangina % Total for FOSHU products % Total soft drink in Japan %
9 Suntory Tennensui Brand Strategy Clear and tasty & natural and healthy Suntory Tennensui Strengthen correlation with Suntory Tennensui nurtured by the abundant nature in the Minami-Alps (water source) Sparkling water Flavored water New category Promote taste + lifestyle recommendations Fully promote taste by advertising natural ingredients and production method New product
10 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 Continue to strengthen mainstay products Launch PREMIUM BOSS BLACK Expand lineup New product Bottle-shaped can
11 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: g can: 140 TV commercial Plan new creative advertising from day of launch
12 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 /strengthening of Tokucha and Suntory Black Oolong Tea Marketing measures that match product characteristics Category expansion New product Iyemon Tokucha Suntory Black Oolong Tea Goma Mugicha Pepsi Special Boss Green
13 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
14 New Look for Black Oolong Tea from March 17th! Before Major package changes After Sharply boost Consumer purchase intent Major advertising changes Coming Soon Details will be disclosed at a later date. Currently negotiating with people to appear in ads. Improved content Tea leaves offering a smooth taste newly incorporated Enhance rich aftertaste Boost feeling that fat is being cleanly washed away
15 Other Core Brand Strategies Iyemon Suntory Oolong Tea Pepsi Renew Iyemon Fully develop Tokucha Promote compatibility with meals Renew bottle Forever Challenge GREEN DAKARA Orangina Fully develop GREEN DAKARA Yasashii Mugicha(barley tea) First launch in the world of Lemongina, a new product developed using SBF R&D technologies
16 Lemongina March 31st Launch Japan is the first market in which Lemongina is to be launched! Concept A real carbonated lemon beverage 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 / volume Suggested retail price (excluding tax) TV commercials 1.2 liter PET bottle/420 ml PET bottle 1.2 liter PET bottle: ml PET bottle: 140 Scheduled to inject new creative advertisements prior to launch
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