Corporate Initiatives and Scandals and Their Impact on Investor Perceptions
- 5月7日
- 読了時間: 4分
May 7, 2026
CHIKA KANAI
MIYUNA KIKUKAWA
Corporate initiatives and scandals reported in the news can influence investor sentiment and future stock price expectations. Suntory Holdings, for example, acquired Beam Inc. in 2014, while in 2025 its CEO, Takeshi Niinami, was involved in a major scandal. In this article, we will write about how these 5 Suntory Holdings' corporate initiatives and scandals affected stock price fluctuations.
1. Acquisition of Beam Inc. (2014)
In January 2014, Suntory acquired Beam Inc. for approximately 1.36 trillion yen, obtaining global brands such as “Jim Beam.” The acquisition contributed to a 20% year-on-year increase in consolidated net sales. Beam’s stock price rose roughly 25% following the announcement, reflecting investor approval of Suntory’s global expansion.
2. Restructuring of the Soft Drink Business (2014)
In 2014, Suntory implemented structural reforms in its soft drink business, strengthening core brands such as “Tennensui,” “BOSS,” and “Iyemon,” expanding the Tokuho beverage lineup, enhancing the overseas market. As a result, beverage sales for January–March 2014 increased 23.2% year-on-year, and domestic profits rose 15.6%.
3. Involvement in the “Sakura Viewing Party” Scandal (2022)
In May 2022, it was reported that Suntory had allegedly provided alcoholic beverages free of charge to a reception hosted by former Prime Minister Shinzo Abe’s support group between 2016 and 2019. Records reportedly included 80 bottles of beer and 30 bottles of whiskey, raising suspicions of violations of the Political Funds Control Act and the Public Offices Election Act.
4. Premium Whiskey Strategy (2024–2025)
Since 2024, Suntory has prioritized premium whiskey, raising prices and brand value for products such as “Yamazaki” and “Hibiki.” This led to double-digit growth, and brand value reached USD 928 million in 2025, a 28% increase.
5. Drug-Related Scandal Involving the CEO (2025)
In September 2025, then-CEO Takeshi Niinami was investigated for purchasing supplements suspected of containing THC, a component of cannabis, and subsequently resigned. The scandal received extensive media coverage both domestically and internationally. Past allegations of sexual harassment also resurfaced.
How did these events affect the stock price?
Originally, we were going to summarize the changes in Suntory Holdings' stock price in response to these events, but we noticed the stock price does not exist since Suntory is not listed. Therefore, we instead looked at the fluctuations in the stock price of Suntory Beverage & Food, a subsidiary of Suntory Holdings. The following graph shows the results.
As you can see, Suntory Beverage & Food is just a subsidiary of Suntory, so there was no significant correlation between events and stock prices. We can't bear to complete the article with this result, so we will mention "Reasons for unlisted companies" as another theme in this article.
Company Decide Be Listed or Unlisted
Whether the company becomes listed or not is determined by the company’s purposes. The benefits of going public include the possibility to raise funds through selling share easily, as well as enhanced credibility and increased name recognition. However, listed companies have other aspects like disclosure obligation of payment, risk information, and pressure from stockholders. On the other hand, the advantages of unlisted companies are greater management flexibility and reduced disclosure burdens. Though this advantage is preventing management's right from dispersing and enables swift corporate decision-making, these companies are forced to borrow money from the bank and lack social recognition or trustworthiness compared to listed companies. Therefore, this decision depended on prioritizing either the ability to raise funds or management flexibility.
According to this NIKKEI article, some companies deliberately choose to remain unlisted. This reason can be considered by a specific industry requiring long-term management decisions. For example, Mori Building Co, Ltd, which is well-known for projects of commercial facilities that has become a Tokyo landmark like Roppongi Trenimon Hills, has also stayed unlisted for many years. Because large urban redevelopment projects often take more than 20 years until they are completed, having a long-term perspective is essential. President Mori has even said that “if the company were listed, shareholders would not have approved such high-risk projects.” This shows that being unlisted allowed the company to pursue large and risky projects that would have been difficult under the expectations of public shareholders.
How about Santory Holdings Limited....
These examples have common points for the desire to avoid being influenced by stockholder expectations and instead manage the business with a long-term perspective. Suntory is a perfect example of this approach. Since its founding, the company has embraced a bold and entrepreneurial spirit under the motto “Yatte mina hare” (“Let’s try it”). This attitude has led to major strategic decisions such as large-scale acquisitions of overseas beverage companies, all aimed at long-term growth. Being unlisted allows Suntory to carry out such plans more freely, without the pressure of external shareholders. Normally, scandals involving top management can cause stock prices to fall and significantly damage corporate value. However, because Suntory is not publicly traded, its stock price cannot be affected — another benefit of remaining private. On the other hand, a common drawback of unlisted companies is that they are harder to analyze due to limited public information. Perhaps for this reason, Suntory publishes reports on its website that are similar to annual securities filings, along with IFRS-based performance highlights. This effort suggests that the company 0is trying to maintain transparency at the same level as public firms, compensating for the lack of market disclosure. Overall, Suntory’s decision to remain private seems to come from prioritizing the protection of its corporate culture and long-term strategy over raising capital. Like YKK and Mori Building, Suntory uses its unlisted status as a deliberate business strategy.
Reference：
Nikkei article https://www.nikkei.com/article/DGXMZO91355760U5A900C1000000/
