Top Japanese beverage giant Suntory's chief resigns as he faces a drug probe

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TOKYO (AP) — Takeshi Niinami, chief executive of Japan’s major beverage maker Suntory, resigned Tuesday to take responsibility for being under investigation for alleged possession of an illegal drug.

Suntory Holdings President Nobuhiro Torii, who is from the company's founding family, told reporters the company had accepted Niinami’s resignation.

Torii was vague about details such as the type of allegedly illegal drug, saying the case was still under investigation.

Niinami, 66, is a prominent business leader who is credited with guiding strong growth at Suntory, which makes whisky, beer and non-alcoholic beverages. He became the company's chief executive in 2014, and has won respect across the industry for his prominent role in lobbies that represent industry to the government.

“He was a dynamic and decisive leader whom I respect greatly. During a decade of his leadership, both profits and sales grew dynamically,” Torii told reporters.

It was unclear who would take Niinami's place. Torii said he was already in a leadership role alongside Niinami and would take full responsibility for the business, including its overseas operations.

Torii said Niinami had contributed greatly to the company over the years, but that the resignation was inevitable because of “governance issues.”

It is common in Japan for people who cause embarrassment for a group to give up their posts. Japan’s culture stresses accountability and avoidance of shame.

“Regardless of the outcome of the investigation, we feel he is not fit for the job,” Vice President Kenji Yamada told reporters.

Torii and Yamada said the alleged drug in question might have been a “supplement” that Niinami acquired personally. Suntory, founded in 1899, is well known for whisky and soft drinks, but also makes supplements.

They quoted Niinami as saying he didn’t know the supplement was illegal. The police probe started last month, they said, while declining to give other details.

The company's announcement came after markets closed. Suntory's shares traded in Tokyo gained 2.9% on Tuesday.

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