Reuters reported on Tuesday that Suntory Holdings CEO Takeshi Niinami resigned after he faced a police investigation over allegedly purchasing an illegal supplement containing THC. THC is illegal in Japan under the country’s cannabis control laws, and those in possession of the substance can face imprisonment for up to seven years, according to The Guardian.
Niinami claims that he thought he was purchasing CBD supplements, which are legal within the country, and that he had no idea that the substance purportedly contained THC. According to The Guardian, police searched his apartment and took a urine sample. The sample tested negative for illegal substances.
“I was not aware that it was an illegal supplement,” Niinami claimed to the Asahi newspaper. “I am innocent.”
Niinami shared with the paper that he felt it was necessary to resign in order to preserve harmony at the company. It appears that not everybody was happy with Niinami’s decision to step down, notably Nobuhiro Torii, one of the descendants of Suntory’s Founder, Shinjiro Torii.
“He was a bold, decisive leader who got things done and I truly respected him,” Torii said. “In that respect — and I told this to him yesterday as well — it’s a real shame that we couldn’t continue as a team.”
The Harvard alum and ex-Suntory executive was not adverse to making media appearances during his tenure as CEO. His move-fast-and-break-things ethos made him stand out in Japan’s more conservative corporate culture, according to The Guardian.
What Lies in Store for Suntory
The Guardian reported that executives held a press conference in an attempt to reassure investors, even though Niinami’s purported purchase appeared to be an honest mistake.
“The company will work together to regain trust,” Torii said in the press conference, and he admitted that the ex-CEO’s behavior did not meet expectations of “the qualities required” of a chief executive.
One of the heavy hitters within the whisky world, Suntory made a name for itself as the parent company behind Japanese whisky brands like Yamazaki and Hakushu. Yet Suntory also features American brands like Jim Beam and Knob Creek within its portfolio, after the company purchased Jim Beam in 2014 for $16 billion.
The news appears not to have affected share prices for Suntory Beverage & Food Limited, according to OTC Markets on September 2. In fact, stocks appeared to have gone up by 2.92%.
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