Asahi’s new CEO Atushi Katsuki is doubling down on low and no-alcohol products.
In a recent interview with FT, Mr Katsuki bluntly laid out Asahi’s pivot away from their usual beer offering in the face of declining beer output in Japan and a global shift toward consumer wellness.
“This isn’t just about changes in consumption among the young… Until now, we were not able to offer options for different circumstances to address people who can drink but won’t or people who want to drink but can’t.”
The beverage conglomerate’s ‘Smart Drinking’ strategy (outlined in an internal strategy document) targets a sales volume of low ABV products (3.5% or lower) increase from 6% to 20% by 2025.
Asahi has been heartened by the growth of sales of their non-alcoholic beer brands in Europe, growing 10% in 2020.
To replicate the success on Asahi’s home front, the brewery launched a low alcohol product Beery in March in selected Japanese cities.
The response by craft beer enthusiasts to Beery has been mixed so far, with an average rating of 2.67 on Untappd.
Asahi is betting on Beery’s growth via off-trade channels like supermarkets and convenience stores.
Asahi launched Beery on 30th March 2020 in selected cities across Japan
One major positive for the brewery with Beery is that the beverage is categorised as a carbonated beverage, not alcohol, so it is not subject to liquor tax.
While Asahi has existing low alcohol brands in Japan like Slat and Cocktail Partner, the emphasis placed on Beery’s importance in the brewery’s internal documents is intense.
Besides low-alcohol, mirroring moves competitors Kirin and Suntory, Asahi has also said they may “consider” re-entering the low-to-no-sugar beer market.
Asahi’s strategy is evolving globally: the “complementary coffee category” is the latest segment where they’ve begun to expand their portfolio.
Asahi’s latest acquisition, AllPress, is a New Zealand-based coffee roastery that has achieved significant international success.
Asahi New Zealand CEO Andrew Campbell echoed Mr Katsuki’s sentiments when commenting on the purchase to Radio New Zealand, noting the coffee roastery acquisition “filled a gap in its [Asahi’s] broad offering.”
Moving ahead, irrespective of the success of individual brands or new products, Asahi is doubling down on giving drinkers a more comprehensive range of choices.
