Premium brand portfolio drives GTR exclusives innovation pipeline for Suntory Global Spirits

Suntory Global Spirits has plenty of rich brand narratives within its portfolio when it comes to telling heritage stories in the GTR channel.

“One of our biggest priorities, and especially important because we are a Japanese company, is our Japanese whiskey portfolio, The House of Suntory. Within that, we really want to build the Hibiki brand,” explains Managing Director Global Travel Retail Ashish Gandham. While the Hibiki name has had “tremendous traction” over the years, Gandham says the next challenge is taking it out to the world. Asia Pacific (APAC) markets are a particular focus, including Singapore’s Changi Airport, which serves as an important gateway.

Meanwhile, another portfolio “icon” set for market expansion is Bowmore. The Scottish single malt’s value credentials in the APAC region position it as a powerhouse for growth. “The Asian consumer likes to have a liquid that is accessible,” says Gandham. “Age has always been important across Asia. When consumers evaluate product quality, they look at the aged statement. As an industry, we’ve tried to talk about flavor-based product profiles, but our Bowmore aged expressions have received positive feedback from the market [in India].”

The Super Premium American whiskey category also needs attention, according to Gandham. For Maker’s Mark the coming years will be about investment in key markets, “where we would love to create an American whiskey renaissance,” he says.

TR must-haves

Travel retail exclusives are a “must have,” especially given ongoing price pressures and consumers looking for the right price, says Gandham. “As soon as you give travelers an exclusive, suddenly that is great value. It gets them thinking about price benchmarks between domestic and travel retail.”

From launching an entire Bowmore range that is travel retail exclusive to expanding its Japanese whiskey offer with the Hibiki Harmony Master’s Select, Gandham says Suntory is constantly looking to innovate for the channel. The Kogei Collection of single malt whiskies – The Hakushu and The Yamazaki – was launched to tap into the power of exclusives. Meanwhile, significant development is planned for Maker’s Mark, he adds.

“Looking at our pipeline for the next three years, the challenge is how we can continue to innovate with relevant stories – innovation for its own sake will not be sufficient,” he says. “It will come down to the importance of aged products and how each brand can offer credible stories that are exclusive to different markets.”

Market dynamics: China versus India

China and India are global priorities for Suntory. “Both these markets are what we call icon markets. China started the journey slightly earlier and as a market it’s rapidly developing. Single malts are growing at an unprecedented scale there,” says Gandham. “We’ve seen that with Hainan and we’ve seen that with other airports in China; it’s a developing story,” he adds.  

Meanwhile the trajectory in India, especially post-COVID, is faster for Suntory’s key GTR brands. “The Indian traveler is becoming more and more prominent,” he says. “They are traveling in greater numbers and they’re spending more than they used to. They are looking to explore new brands.”

“When it comes to whisky, single malt is now equal to blended scotch, and that’s a fundamental shift from where India used to be,” says Gandham.

It’s a pan-regional shift, he notes. “In Southeast Asia or the Middle East, the Indian traveler is starting to contribute more and more to the overall category. The biggest pivot is premiumization in the right way. It’s not simply about pricing; it’s about looking for products that were previously not accessible or that they haven’t tried before.”

India is the market to watch, from the demand for single malts to this demographic’s growing desire for choice. “It’s right up there in terms of the transformation we are seeing in the market,” says Gandham.