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Manila Bulletin devider Business devider The Stock Market devider Filipino appetite for Japanese products drives AC Health's latest retail venture

Filipino appetite for Japanese products drives AC Health's latest retail venture

Published Jun 1, 2026 12:00 am
Ayala Healthcare Holdings Inc. is betting on the growing local appetite for Japanese consumer goods, partnering with Nagoya-based Sugi Holdings Co. to launch a new chain of wellness-focused pharmacies in the Philippines.
The healthcare arm of Ayala Corp., through its retail unit AC Health Pharma Ventures, opened its inaugural “St. Joseph Drug Powered by Sugi” storefront at the One Ayala transit and retail hub in Makati City.
The venture aims to capitalize on a post-pandemic surge in consumer interest toward preventive healthcare, Japanese skincare, and functional wellness products, fueled in part by the record number of Filipino tourists returning from Japan.
The flagship outlet was a significant strategic pivot for St. Joseph Drug, a regional pharmacy chain acquired by the Ayala Group that has traditionally operated as standard dispenser of medicine. The new format blends traditional pharmaceutical services with curated lifestyle rows, introducing Japanese-made oral care, beauty products, household essentials, and health snacks to local consumers.
“Healthcare and wellness are becoming increasingly integrated into everyday life, and consumers today are looking for experiences that are both trusted and engaging,” said et Abarca, President and Chief Executive Officer of AC Health Pharma Ventures.
Abarca noted that the joint venture intends to transform the traditional drugstore visit into a lifestyle destination that remains accessible to the broader public.
For Sugi Holdings, the partnership serves as a key entry point into Southeast Asia’s fast-growing wellness market. The company operates more than 1,500 stores across Japan, where it has built a business model around preventive care and aging-population solutions. The financial terms of the joint venture and the specific capital expenditure earmarked for the nationwide rollout were not immediately disclosed.
The expansion comes amid aggressive competition in the Philippine pharmacy and convenience retail sectors, as major conglomerates vie for a larger share of consumer wallets. The Ayala Group’s healthcare network, which also includes the Generika Drugstore chain and the QualiMed hospital network, has been scaling up its ecosystem to capture both low-cost medicine markets and premium wellness segments.
The partnership allows the 70-year-old St. Joseph Drug brand to elevate its retail experience and capture higher-margin consumer segments, according to Dorothy Cruz, Chairman and Chief Executive Officer of St. Joseph Drug. Cruz said the collaboration allows the company to evolve its legacy by integrating Japanese retail innovation with its existing provincial network.
Tsuyoshi Yamamoto, Director and Chief Executive Officer of S. Trading, Sugi Holding’s overseas trading arm, said Japanese wellness culture is uniquely centered around daily habits and preventive care. Yamamoto added that the joint venture intends to use the One Ayala flagship as a proof of concept before expanding the brand to other urban centers across the country. (James A. Loyola)

Related Tags

Ayala Healthcare Holdings Inc. (AC Health) Sugi Holdings St. Joseph Drug
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