Photo/Illutration Nobuhiro Torii, left, president of Suntory Holdings Ltd., and Vice President Kenji Yamada bow in apology at a news conference held in Tokyo’s Minato Ward on Sept. 2. (Koichi Ueda)

Takeshi Niinami, chairman and chief executive officer of beverage giant Suntory Holdings Ltd., resigned after becoming the subject of a narcotics investigation by police, the company said Sept. 2.

The resignation of Niinami, 66, a respected business leader known for steering Suntory’s global expansion, took effect on Sept. 1.

At an emergency news conference in Tokyo, Suntory Holdings President Nobuhiro Torii expressed deep regret, saying, “I sincerely apologize for causing concern and inconvenience to everyone.”

At issue are supplements purchased by Niinami.

Although police have so far found nothing illegal in the investigation, Suntory said Niinami’s actions have raised suspicions and make him unfit to lead the company.

“For the top executive management of Suntory Group, strict compliance with laws and regulations is fundamental, and exercising appropriate caution in purchasing supplements is an indispensable quality,” the company said in a statement.

“Therefore, without waiting for the outcome of the investigation, the company determined that Takeshi Niinami’s actions, which demonstrated a lack of awareness regarding supplements, rendered him unable to continue in the key position of representative director, chairman and chief executive officer,” it said.

It added that the supplements bought by Niinami were not Suntory products.

According to Suntory, Niinami called an executive of the company on Aug. 21 and said, “Suspicions have arisen regarding the supplements I had purchased.”

Investigative sources said Fukuoka prefectural police searched Niinami’s Tokyo home on Aug. 22 over suspected violations of the Narcotics Control Law.

The search was conducted after police received reports that supplements containing cannabis derivatives had been sent to Niinami’s residence, the sources said.

However, no illegal substances were discovered in the search, and Niinami denied any wrongdoing.

Later that day, an outside lawyer interviewed Niinami directly. The Suntory chairman said the supplements are not something to be suspicious of, according to the company.

Niinami departed for a business trip to the United States starting on Aug. 23.

Suntory’s board convened an extraordinary meeting on Aug. 26, during which Niinami remotely joined and provided explanations about what had happened.

On Aug. 28, all directors and auditors except Niinami discussed the matter. They unanimously decided to request his resignation.

At the Sept. 2 news conference, Suntory Vice President Kenji Yamada said, “Since the investigation is ongoing, I cannot comment on the legality of the supplements.”

But Yamada clarified why the board asked Niinami to step down.

“From the perspective of corporate ethics and compliance within the Suntory group, we have examined the qualifications required of the head of a company that deals with supplements,” he said. “As chairman, the very fact that doubts have arisen indicates that Niinami’s actions demonstrate a lack of the qualities required of (a business leader).”

Yamada also noted that the company received a comment from Niinami that said, “I regret that I am no longer able to continue serving as chairman.”

Nobutada Saji, chairman of the board who had brought Niinami to Suntory, reportedly told the company about the situation, “It can only be described as regrettable.”

INFLUENTIAL BUSINESS FIGURE

Niinami, a veteran in Japan’s corporate world, joined Mitsubishi Corp. in 1981 and later served as president of Lawson Inc.

In October 2014, he became Suntory’s first chairman appointed from outside the founding family, a move that attracted significant attention.

In the same year, Suntory made landmark acquisitions, including the 1.6-trillion-yen ($10.8 billion) purchase of American whiskey giant Beam Inc.

Under Niinami’s leadership, Suntory sales in the fiscal year ending December 2024 soared to about 3.4 trillion yen.

Beyond Suntory, Niinami has been influential in Japan’s business community, serving as chairman of Keizai Doyukai (Japan Association of Corporate Executives) and actively voicing his opinions on government policies and issues.

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