The “phenomenal success” of Beam Suntory RTD brand -196 in Australia has lead to it launching in the United Kingdom this month.

Launched by Suntory in Japan in 2005, -196 is a ready-to-drink beverage brand made with the company’s proprietary FCI (Freeze Crush Infusion) technology. The technology freezes the whole fruit by using liquid nitrogen at -196 degrees Celsius then crushes and infuses it with vodka.

Beam Suntory launched the brand in its first international market – Australia – in 2021, adapting its taste and packaging design to suit local preferences. It aimed to disrupt the seltzer-obsessed Light RTD category with -196 and become a top three brand by 2030. Its distinctive ‘Extreme Japanese Spirit’ campaign established -196 as the No.3 Light RTD in Australia within one year of launch, outselling White Claw and Smirnoff Seltzer in the process.

It was Beam Suntory Australia’s most successful launch ever.

The RTD expanded into China in 2023 and this year sees further global expansion to the UK, Germany, the US and Southeast Asia. 

RTD is the fastest-growing alcoholic beverage category globally, which witnessed an average growth rate of approximately 20% through 2020-2022. Growth is expected to continue, with the global market size estimated to exceed US$50 billion (£39.2 billion) by 2030.

Suntory has described the growth of -196 RTDs in Australia as “explosive”.

“Australia is a very important test market for the global strategy,” Makoto Kitaura, a senior general manager at Suntory, told Reuters last year.

“If we have a success in Australia, then other Western countries like the US, the UK may have an interest to try a new brand. And we can see huge growth potential with the US market.”

It marks Suntory Beverage & Food GB&I’s first alcoholic beverage release in the UK.

“This launch marks a significant move for us into the ready to drink alcohol market and is part of a much bigger strategy for portfolio growth,” said SBF GB&I Chief Operating Officer Carol Robert.

“We’re very proud of our Japanese heritage and honoured to be launching one of Suntory’s iconic brands in our business for the first time.”

The brand will be available across 21 US states this month and will hit shelves in Germany and Southeast Asia later this year.

“It’s a key part of our goal to be the number one global RTD company and we’re excited to deliver this incredible product to more people across the globe,” Suntory said.

Australia a model for Suntory RTD success

A new Suntory Oceania factory is currently being built in Queensland for the production of -196 and other products.

It will include beverage processing, packaging, warehousing, and distribution. It is the global company’s first in Australia and is the largest FMCG investment in Australia in the last decade. 

The new Swanbank facility is expected to hire around 450 employees for construction and create around 160 long-term roles once it goes live in mid-2024. 

Last year, Suntory Beverage & Food Limited President and CEO Makiko Ono said that the company will use its new Suntory Oceania subsidiary to trial the introduction of ready-to-drink beverages.

“As a beverage company, this is our first time to make RTDs, so I think this will be a new model we can use in markets such as Europe,” said Ono. “I would like to use Australia as a reference case.”