Former Suntory CEO says innocent of drug possession after probe

TOKYO - Mr Takeshi Niinami denied possessing or transporting any illicit drugs after resigning as chief executive of Suntory Holdings following a search of his home for suspected cannabis-based products.

“I am innocent,” Mr Niinami said, speaking at a news conference on Sept 3 as chairman of the Japan Association of Corporate Executives, a business lobby group. “I haven’t done anything that violates the law.” 

The outspoken executive, who has frequently rankled Japan’s business establishment, said he purchased some Cannabidiol or CBD products in the US because they were cheaper than in Japan.

He arranged to have them mailed back, but they never reached him. Police had searched his home after finding his name and address with someone who had been arrested. 

The public rebuttal by Mr Niinami, who bowed deeply before and after the news conference, is a departure from the usual script followed by Japanese executives caught up in a scandal.

After resigning and apologising, they often disappear to lead quiet lives, shunned by the closed mostly-male corporate community.

Mr Niinami, who said he used CBD products to help with sleep, said he had previously bought them in his home country before. 

CBD products are legal in Japan as long as they are completely free of tetrahydrocannabinol (THC), a psychoactive compound.

Anything containing THC above an extremely low threshold is classified as a narcotic in Japan, and possession or transfer of CBD products containing THC is punishable by up to seven years in prison, according to Japanese law.

As Suntory’s CEO and chair of the country’s second-biggest business group, the Keizai Doyukai, Mr Niinami has been an influential voice in business circles.

Even so, it is unusual for a disgraced executive to push back assertively after getting caught up in a scandal and resigning. 

Mr Niinami said he will suspend all of his activities as chair of the lobby group and abide by any decisions taken by the organisation’s leaders.

They are set to decide on his future by the end of September. 

Mr Niinami’s clarification came a day after Suntory held a press conference confirming the police probe against him over potential legal violation over the supplement he bought.

He did not attend the company’s news conference and Suntory’s president Nobuhiro Torii confirmed Mr Niinami’s resignation. 

“I resigned because I thought it would be good to avoid any harm to the company,” said Mr Niinami. “I love Suntory. I must never cause trouble to it.”

During Mr Niinami’s more-than-a-decade career at Suntory, the Japanese beverage giant expanded its footprint to markets from China to the US for its drinks ranging from high-end whiskey to Oolong teas.

“There’s a part of me that wishes I could have done more myself, beyond what I’ve accomplished,” said Mr Niinami.

“But I’ve planted seeds and there are people with the will to nurture them. I strongly hope they will grow these seeds into a great tree and let them blossom into flowers.” BLOOMBERG