Dive Brief:
- The chief executive of Japanese beverage giant Suntory Holdings resigned after police searched his home as part of an investigation into the purchase of potentially illegal supplements.
- CEO Takeshi Niinami claims he thought the supplements he purchased were legal. Although a police investigation is still ongoing, Suntory said Niinami's "lack of awareness" rendered him incapable of holding top leadership positions.
- Niinami, one of Japan's most prominent business leaders, was appointed CEO in 2014 and named board chairman this past March. He will also relinquish his role as chair, Suntory said.
Dive Insight:
Suntory is one of Japan's most recognizable beverage companies, with notable products including Jim Beam whiskey and Orangina soft drinks. Niinami oversaw the integration of Beam Inc after Suntory acquired it for $16 billion in 2014.
More recently, Niinami led the spirits giant through an expansion in ready-to-drink cocktails and helped position the company to better respond to trends, including the rise of nonalcoholic beverages. The company renamed Beam Suntory to Suntory Global Spirits in 2024.
As alcohol consumption and spending has sharply declined in the U.S. and Europe, Suntory's spirits business has struggled. Profits nosedived in the first half of 2025, with operating income declining 30% compared to the previous year.
Niinami was also the first CEO outside of the company's founding Torii family to hold the top post. Last year, Suntory named Nobuhiro Torii, great-grandson of founder Shinjiro Torii, as president and shifted to a dual management structure where he would share control of the company with Niinami.
The company first received the report that Niinami was under police investigation on Aug. 22, calling it "a matter of grave governance concern." While Niinami told a local news outlet he bought the product believing it was a legal CBD supplement, officials are looking into whether the supplements contained THC, the psychoactive chemical in cannabis, Bloomberg reported.
Under Japanese law, cannabis possession is illegal, with a maximum penalty of seven years in prison.
Niinami's resignation is the latest scandal to shake up the food and beverage industry in the past few days. On Monday, Nestlé fired its CEO after an investigation revealed a previously undisclosed relationship with a direct subordinate.
