The global spirits industry is experiencing a seismic shift, one driven not by fleeting consumer whims but by a fundamental alteration in taste and preference. According to Greg Hughes, CEO of Suntory Global Spirits, this transformation isn’t a trend; it’s a “new world order” – a permanent move toward premiumization fueled by evolving consumer demands and a sustained desire for exceptional quality in spirits. Speaking exclusively to *Shanken News Daily*, Hughes’s bold declaration has been reinforced by a growing body of industry analysis, signaling a lasting departure from the dominance of mass-produced, lower-priced offerings.
For years, the spirits market largely catered to a segment of drinkers seeking value and accessibility. However, the landscape is dramatically changing, with sophisticated consumers increasingly prioritizing experience, craftsmanship, and distinctive flavor profiles. This shift isn’t simply about a spike in demand for expensive brands; it’s a complete reimagining of what consumers expect from their alcoholic beverages.
Suntory’s Strategic Response: Leading the Charge
Suntory, a global giant with iconic brands like Yamazaki and Hibiki, is firmly at the vanguard of this transformative movement. Hughes is spearheading a multi-faceted strategy focused on innovation, strategic expansion, and a steadfast dedication to elevating the category. This includes the deliberate development of entirely new spirits brands, a renewed and intensified focus on craft distillation techniques – particularly evident in the meticulous processes at Yamazaki – and, crucially, a continued commitment to Japanese whisky. This last element is proving particularly pivotal, as the category enjoys consistent global popularity thanks to its “unique flavor profiles” and “consistent quality,” as noted by *The Irish Whiskey Society*.
Suntory’s approach isn’t solely about launching more expensive bottles. They are investing heavily in the very details that drive discerning drinkers: exploring innovative barrel finishes – experimenting with ex-wine, ex-bourbon, and even ex-cognac casks – and pushing the boundaries of aging techniques. This dedication to quality and experimentation is contributing to a general increase in prices across the industry, but it’s a price consumers are increasingly willing to pay. The company’s success in expanding its reach into emerging markets, alongside its existing global strength, is further amplifying the impact of this strategic investment.
The Rising Demand for Quality: A Consumer Revolution
The trend towards premiumization isn’t just about individual brands and specific spirits like Japanese whisky; it’s a reflection of a broader consumer movement. Data consistently points to a shift in purchasing behavior, with consumers demonstrating a willingness to invest in products that align with their values and aspirations. They’re seeking out brands that demonstrate transparency, ethical sourcing, and a genuine commitment to quality – elements that extend far beyond the liquid itself.
As the industry adjusts to this evolving landscape, it’s laser-focused on delivering what consumers are now seeking: a heightened drinking experience. This emphasis on craftsmanship and storytelling around the product—highlighting the production process, the history of the distillery, and the people behind the brand—is becoming increasingly important. This shift creates both opportunities and challenges. While serious drinkers, driven by a desire for complexity and nuance, are embracing the increased investment in exceptional spirits, those accustomed to cheaper options may find themselves facing higher prices, potentially leading to a divide within the market.
Looking ahead, experts predict continued growth in the premium spirits segment, driven by a global population increasingly interested in luxury goods and unique experiences. The rise of cocktail culture, coupled with social media’s influence in shaping taste preferences, is undoubtedly accelerating this trend.
Key Takeaways:
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Permanent Shift:
Greg Hughes believes premiumization represents a fundamental change within the spirits industry, not just a temporary trend – a “new world order.”
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Consumer Demand:
Consumers are increasingly demanding high-quality spirits and unique drinking experiences, demanding more than just a base spirit.
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Suntory’s Investment:
Suntory is strategically investing in innovation, craft distillation, and the continued success of Japanese whisky to meet this elevated demand.
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Higher Prices Expected:
Increased investment in premium spirits is likely to result in higher prices for consumers, representing a long-term market dynamic.
Ultimately, the shift toward premiumization within the spirits industry signifies a profound change in consumer priorities. It’s a movement built on quality, experience, and a desire for authentic connections with the brands they choose to support.
Source: https://www.shankennewsdaily.com/2026/02/18/39225/interview-suntory-global-spirits-ceo-greg-hughes/
