Suntory Holdings and EF Polymer Enter Capital and Business Alliance Agreement to Solve Agricultural Challenges and Commence Joint Demonstration Experiments

Suntory Holdings Limited (hereinafter, Suntory Holdings) and EF Polymer Co., Ltd. (hereinafter, EF Polymer), an environmental startup company, have entered into a capital and business alliance agreement to realize sustainable raw material procurement and stabilize agricultural production under climate change. Under this alliance, the two companies will commence joint demonstration experiments from June to verify the impact of improved soil water retention using superabsorbent polymers on crop yield and quality. This marks the first capital and business alliance agreement between EF Polymer and a beverage manufacturer.

*1 Source: EF Polymer

Background

Due to the effects of climate change, "drought" has become increasingly severe worldwide in recent years. Reduced rainfall and rising temperatures lead to insufficient moisture in the soil, significantly impacting agricultural production by causing decreases in crop yield and quality. This challenge is a critical issue not only for agricultural workers but also for beverage manufacturers, as it relates to raw material procurement and business continuity.

To promote sustainable raw material procurement, the Suntory Group has been globally promoting initiatives including soil improvement, such as promoting regenerative agriculture, supporting farming operations, and conducting joint research with academia.

(See https://www.suntory.co.jp/sustainability/soc_procurement/)

Meanwhile, EF Polymer has developed "EF Polymer," the world's first*2 mass-produced "100% naturally derived" superabsorbent polymer manufactured by upcycling organic resources such as discarded fruit peels. They have been working to provide solutions for stabilizing agricultural production in drought conditions.

*2 Source: EF Polymer

"EF Polymer" "EF Polymer"

Objectives of the Alliance and Overview of Demonstration Experiments

By leveraging their respective strengths, the two companies have commenced joint demonstration experiments from June to verify the effectiveness of an approach to "stabilize agricultural production by improving soil water retention." Specifically, they plan to verify the following aspects when applying "EF Polymer" in yuzu cultivation:

* Effect of improving soil water retention * Impact on crop yield and quality * Effect of reducing irrigation (watering) load

Expected effects of "EF Polymer" on soil water retention

Yuzu is one of the important raw materials for the Suntory Group and is a crop highly susceptible to rainfall and moisture conditions, which is why it was selected as the subject for this demonstration experiment.

Furthermore, this demonstration experiment will be conducted with the cooperation of yuzu farmers in Kochi Prefecture, under the framework of the comprehensive cooperation agreement concluded between Suntory Holdings, Kochi Prefecture, and Kochi University National University Corporation in April 2025 (See News Release No. 14794).

Future Developments

Through this alliance and demonstration experiments, the two companies aim to establish new agricultural methods that can cope with climate risks such as drought. In the future, they plan to expand their efforts to other crops both domestically and internationally, striving to realize sustainable agriculture and build a stable raw material procurement base.

● Masanori Fujiwara, Managing Executive Officer, Head of Supply Chain Division, Suntory Holdings Limited, commented:

In today's highly uncertain external environment, strengthening the supply chain, and particularly improving the sustainability of agriculture, is essential to stably deliver high-quality, safe, and secure products to our customers. Through collaboration with EF Polymer, which possesses unique technology, we will find effective solutions and further promote the transition to sustainable agriculture.

● Narayan Lal Garg, Founder and CEO, EF Polymer Co., Ltd., commented:

We are delighted to partner with Suntory Holdings. By combining the strengths of both companies, we are confident that we can create greater value in addressing the common challenge of water resource conservation. Through this alliance, we will expand the possibilities of 100% organic resource-derived, circular materials and contribute to the realization of a sustainable society.

▼ Suntory Group Sustainability Site

https://www.suntory.co.jp/sustainability/

▼ EF Polymer Homepage

https://efpolymer.jp/

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