Suntory Reveals Strategy Behind Beam Purchase

Dear Client: Although Suntory Holdings has stayed relatively quiet since the announcement that it will acquire Beam Inc. for $16 billion (see WSD 01-13-2014), the company spoke up today to reveal that it plans to capitalize on Beam's overseas brand recognition. Currently, Suntory's spirits sales outside of Japan only represent 6% of its total spirits business in 2013, but it is facing a shrinking and aging population in Japan, reports WSJ. Therefore, Suntory believes the Beam acquisition will help it