Whiskey Business: Suntory CEO Quits Over THC Probe

In a stunning shake-up at one of Japan’s biggest beverage giants, Suntory Holdings Chairman and CEO Takeshi Niinami has resigned after being questioned by police over an overseas purchase of supplements allegedly containing THC, the psychoactive compound in cannabis that’s illegal in Japan above certain levels, Japan Times reports.

The company announced Tuesday that Niinami, one of Japan’s most prominent business leaders and a member of a government economic panel, stepped down after police launched an investigation tied to supplements he bought overseas – products he insists he believed were legal.

“We apologize from the bottom of our hearts for causing trouble over the incident,” Suntory Holdings President Nobuhiro Torii said at a hastily convened news conference in Tokyo.

The Breaking Point

Torii said Niinami informed Suntory on Aug. 22 that he was under police investigation. The company brought in an external attorney, who confirmed Niinami’s account that he purchased the supplements “with the understanding that they were legal.”

But the Fukuoka Prefectural Police suspect otherwise. Investigators believe the products may contain THC and became aware of Niinami’s possible involvement after another man was arrested in July over illegal drugs.

Niinami has denied wrongdoing, telling investigators that a female acquaintance ordered the supplements and had them sent to him. He voluntarily submitted to a urine test for THC, which came back negative.

Guess times aren’t so relaxing for Niinami…

Despite the pending investigation and the absence of confirmed wrongdoing, Suntory’s board urged Niinami to resign, citing concerns over his judgment and the company’s reputation.

Torii said the controversy “makes him unfit to remain as chairman,” especially since Suntory itself sells supplements. After initial reluctance, Niinami agreed to step down on Monday, ending his more than 10-year tenure with the company.

Torii nonetheless praised Niinami’s leadership – saying “He was a bold, decisive and capable business leader,” adding “For the 10 years he was with the company, he significantly expanded the company’s sales and profitability. That is an undeniable fact.”

Suntory Vice President Kenji Yamada stressed that Niinami’s resignation was final regardless of whether police eventually clear him:

“This decision was made in light of the seriousness of the issue, which concerns his qualification to be the leader of a company that deals in supplements. Regardless of the outcome of the investigation, this matter will remain unchanged.”

Niinami, who became Suntory’s president in 2014 and took over as chairman in March this year, also serves as head of the Japan Association of Corporate Executives (Keizai Doyukai), a high-profile business lobby.

Investigators have not located the supplements in question, and no formal charges have been filed.

Wonder if Sammy Davis Jr. was on THC when he adlibbed this Suntory ad? Maybe something with a little more kick.