He Sparked the Highball Craze... The Downfall of Suntory's Chairman Who Once Ruled Japan's Business World [Japan Insight]

Takeshi Ninami Resigns Amid Drug Law Violation Allegations
The Star Executive Who Grew Lawson and Became Suntory's First Outsider CEO in 115 Years
Claims Innocence: "No Problem, the Ingredient Is Legal"

From Suntory Whisky, a must-buy for making highballs on trips to Japan, to Jim Beam and Yamazaki-there are probably few people who haven't heard of the Japanese liquor brand Suntory. This week in Japan, Takeshi Ninami, Chairman of Suntory Holdings (HD), became embroiled in controversy. Because he was not only at the helm of Suntory but also active across Japan's business world, the impact was significant. Today, we bring you the story of Chairman Ninami.

On September 6, NHK and other Japanese media reported that Chairman Ninami had submitted his resignation on the 1st. The background to his resignation involved a police investigation. On August 22, the Fukuoka Prefectural Police searched Chairman Ninami's home on suspicion of violating drug control laws. He is suspected of importing supplements containing tetrahydrocannabinol (THC), a substance derived from cannabis, from the United States.

Profile photo of Takeshi Ninami at the time of being recruited as president of Suntory. Photo by Bloomberg.

How did the Fukuoka Prefectural Police come to investigate a case in Tokyo? The police had received information that the supplement was included in a package sent from overseas, which prompted them to conduct the search. At the time of the search, Chairman Ninami explained to the police, "I thought it was a legal product," and "Someone I know sent it to me unilaterally." However, a simple urine test conducted at the scene returned a negative result.

This incident caused a major stir in Japan. Chairman Ninami had been a prominent figure since his days as CEO of Suntory HD. He began his career at Mitsubishi Corporation and became president of Lawson in 2002. He gained attention for driving significant growth at Lawson. Then, in 2014, he was appointed CEO of Suntory. Suntory had maintained a family management principle, so bringing in an outsider as an executive was the first time in 115 years. After becoming CEO, he expanded Suntory's business bases overseas, including in the United States and India, working to transform Suntory into a global company. Earlier this year, when the great-grandson of the founder took over as CEO, Ninami became chairman.

In addition, he served as a private-sector member of the Japanese government's Council on Economic and Fiscal Policy and as secretary general of the Japan Association of Corporate Executives, which stands alongside Keidanren and the Japan Chamber of Commerce and Industry. He was actively engaged as a key figure in the business community.

President Ninami holding a press conference after resignation. FNN.

Because the news broke under these circumstances, Japan's business community and media were thrown into turmoil. Moreover, Suntory is a company that records over 300 billion yen (about 281.95 billion won) in sales not only from alcoholic beverages but also from health supplements and nutritional products. Since Suntory HD also sells nutritional supplements, the company informed Chairman Ninami that it was inappropriate for an executive to possess a supplement containing cannabis-derived ingredients.

Chairman Ninami, believing he should not cause further trouble, submitted his resignation effective September 1. Suntory HD responded by holding an emergency press conference the following day. He also announced that he would suspend his activities as secretary general of the Japan Association of Corporate Executives and enter a period of self-restraint.

However, he continues to assert his innocence. According to the Asahi Shimbun, his account is as follows: During a business trip to the United States in April, a friend recommended a supplement containing cannabidiol (CBD) for its health benefits, and he decided to purchase it. Since it was cheaper to buy in the United States, he arranged for his acquaintance to purchase it there. However, his itinerary included stops in India and Dubai, where supplements containing CBD are prohibited. As a result, his American acquaintance brought the supplement directly to Japan and sent it by mail. However, his family disposed of the package, so he never actually received the supplement.

Live broadcast screen of Chairman Ninami's resignation press conference. Nippon Television.

Chairman Ninami attended the regular press conference of the Japan Association of Corporate Executives as scheduled on September 3 and reiterated, "The ingredient in the supplement was CBD, which is sold in the United States, and similar products from the same brand are sold in Japan. So I thought it was 100% okay," adding, "I did not possess or use it in Japan."

Why is he emphasizing CBD so much? CBD is extracted from parts of the cannabis plant such as seeds, roots, and mature stems, which are different from the commonly known parts of cannabis. In South Korea, the Ministry of Food and Drug Safety considers CBD to be part of cannabis, but in Japan, CBD is not classified as an illegal drug. Instead, Japanese authorities focus on whether THC, a cannabis-derived substance, is mixed in during the extraction process. If the THC content exceeds the legal threshold, the product is classified as a narcotic.

However, the police investigation has now taken a new turn. The Fukuoka Prefectural Police searched the Tokyo residence based on the testimony of a man arrested in another drug-related case. This man stated during questioning, "I had previous dealings with Mr. Ninami," and "I was asked by Mr. Ninami to send him supplements." It has also newly emerged that the supplement contained THC above the legal limit.

Chairman Ninami, who once led the "highball boom" overseas as a successful CEO, has now become the subject of a police investigation. In Japan, additional reports continue to emerge daily. As new circumstances come to light, negative public sentiment appears to be growing. It is truly unpredictable how a person's life can shift from the business section to the social news section.