One Year In: Hernan Tabah Shares Details on Suntory Global Spirits’ Data-and AI-Powered Optimization Strategy
Last September, Suntory Global Spirits made the decision to centralize its IT, digital strategy, delivery, and experience teams under a single leader. As a result, it named Hernan Tabah to the role of SVP and chief digital and technology officer.
Now a year in, Tabah shares details about the company’s strategic runway toward digital transformation, providing details about Suntory Global Spirits’ optimized go-to-market strategy, artificial intelligence integrations, and the core mindset that digital innovation is a value-creation opportunity, instead of simply an expense on the bottom line.
Originally from Argentina, Tabah relocated to the U.S. where he worked with major companies in CPG such as Altria and Mondelez International. At Suntory Global Spirits, he’s helping shape the future of consumer engagement, e-commerce, and innovation.
“The whole concept of my role is aligned with our new strategy to become the world’s most admired premium spirits company to drive transformation in a super curated, high-quality way,” says Tabah. In order to do so, the company needed to have a very curated, efficient supply chain as well, and it needed to form a strong partnership with commercial teams across the globe using data and technology.
Also: Learn more about Suntory's rebrand as part of this transformation
The Role Then and Now
Suntory established the position to reshape the way the company provides frictionless consumer experiences by getting closer to consumers, optimizing go-to-market strategies using technology and data, and changing the way the company thinks about supply chain from forecasting and digital procurement to data and digital manufacturing, he says.
It’s a mission with alignment starting at the executive leadership level, but with digital as a business strategy rather than a technology strategy. The approach itself is fluid though, according to Tabah, because the digital vision needs to continuously adapt as technology evolves.
Tapping Into Tech
One of the areas of top interest is (no surprise here!) generative AI. There’s a level of flexibility in this as well, with Tabah sharing that they're exploring both build and buy relationships, including for content generation, consumer insights analytics, and commercial capabilities.
The company is changing how it drives omnichannel growth, investing more in data and AI to optimize content creation for briefs and images to elevate consumer journeys. It is also implementing feedback loops using AI to define new audiences, lookalike models, or propensity models to better connect with consumers.
“That has a massive impact on how we make our brand more relevant for foreign consumers and for future consumers,” he says. “We are building a lot of foundations on advanced analytics across the board.”
Also: Learn how Estée Lauder Is Cultivating a New Culture of Measurement With Data and AI
In a commercial capacity, the company is implementing machine learning models to advance demand forecasting and demand sensing using AI. In R&D, it uses analytics to expedite product and flavor development to better keep up with quickly shifting consumer trends. Additionally, the company is improving blend performance within its ready-to-drink category and reducing development costs.
Many initiatives are exploratory, working with the startup community to build concepts, test them, and scale from there. Others are part of efforts to reframe the partner ecosystem to work with collaborators like Microsoft and TCS to continue expanding and refining efforts.
The two areas ripe for advancement are analytics and the digital acceleration of brands, says Tabah. “They will transform the way we understand and engage with consumers, but also transform the way we execute our commercial excellence and capabilities across the world.”
A Seat at the Table
Because the chief digital technology officer role is situated as part of the ELT, Tabah can be heavily involved in business strategy — a key differentiating factor as it allows him to shape approaches in parallel with commercial strategy, with financial goals, and with regional tactics, he says.
“You move at the speed of the business rather than being reactive and it allows me to work in strong connection with the different functions and regions,” says Tabah. As a result, digital is seen as a value-creation tool, not a separate cost, making it easier to accelerate tech adoptions.
There are several key areas of focus as Tabah continues his journey with Suntory. He’s eyeing giant marketing models accelerated by AI, digital manufacturing, upskilling within the organization, and communication as a core component of driving change.
“You need to drive understanding, adoption, ownership, and then joint partnership."
A year in, Tabah says contributing to transformational change is simply using your voice when you have a seat at the table. You need to have a point of view; you need to bring the expertise.
