Pernod Ricard begins construction on US$26.71M carbon-neutral distillery in Japan

JAPAN – Pernod Ricard has commenced construction on a new €25 million (US$26.8M) carbon-neutral distillery for its Japanese gin brand, Ki No Bi.

This new facility, located in Kameoka City in Japan’s Kyoto Prefecture, aims to meet the growing demand for Japanese gin by increasing production capacity fivefold. The distillery is set to open in the autumn of 2025.

The new distillery will feature an efficient boiler powered entirely by renewable energy sources such as wind, water, solar, and geothermal energy. This aligns with Pernod Ricard’s commitment to sustainability and reducing its carbon footprint.

Ki No Bi, which means “the beauty of the seasons” in Japanese, was launched in 2016. It is crafted using rice spirit and 11 botanicals, including yellow yuzu, Akamatsu wood chips, bamboo, gyokuro tea, and green sanshō berries.

Antonio Sanchez Villareal, managing director of The Kyoto Distillery, which is owned by Pernod Ricard and produces Ki No Bi, expressed enthusiasm for the project.

“This is a pivotal moment for all of us at The Kyoto Distillery and our beloved Ki No Bi gin as the brand prepares for future growth amid the strong demand for Japanese gin and Japanese craft spirits,” he said.

He emphasized that the new state-of-the-art carbon-neutral distillery reflects the company’s commitment to safety and sustainability.

Earlier, Pernod Ricard partnered with ecoSPIRITS in a five-year global licensing agreement to distribute its spirits brands using ecoSPIRITS’ circular packaging technology.

This collaboration, which builds on a pilot program in Singapore in late 2022, aims to promote circularity in the spirits industry. The initiative is part of Pernod Ricard’s 2030 Sustainability and Responsibility roadmap, ‘Good Times from a Good Place’.

Meanwhile, despite facing a 2 percent decline in reported sales to €2.35 billion (US$2.51 billion) for the three months ending in March, Pernod Ricard recorded double-digit growth in Japan, driven by brands like Perrier-Jouët, Chivas Regal, and The Glenlivet.

The company reaffirmed its mid-term financial targets, aiming for net sales growth between 4 percent and 7 percent and organic operating leverage of 50 to 60 basis points.

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