Carlsberg Brewery Malaysia Berhad (CBMB) announced on June 19 that they have agreed with Asahi Group Holdings Ltd to discontinue their Distribution Agreement for Asahi beer in Malaysia. The exclusive distribution agreement will expire on 31 December 2023.

Under the current agreement CBMB has the rights to locally manufacture, sell and distribute Asahi beers.

A separate agreement exists for distribution of Malaysian brewed Asahi in Singapore under CBMB’s subsidiary Carlsberg Singapore Pte Ltd and Maybev Pte Ltd. This agreement was also discontinued.

“We have had a great run with Asahi Super Dry, and it is an amicable parting after having the sole rights to locally manufacture, sell and distribute the brand for more than 10 years,” said Stefano Clini, Managing Director of CBMB.

“Having said that, the Group will remain the exclusive distributor of Asahi for 2023 and we will continue to support the brand for the rest of this year.”

According to Mr. Clini, Carlsberg will continue its premiumization strategy for 2023 while simultaneously exploring opportunities to expand its premium portfolio to deliver the best drinking experience for Malaysian consumers.

CBMB reported a net profit of RM317.0 million for FY2022, driven by its focus on premiumisation and revenue management efforts. Mr. Clini had remarked at the beginning of the year that 2023 would be a challenging year but expressed confidence that its new SAIL’27 strategy would provide guidance for the year.

CBMB added Asahi Super Dry to its portfolio in 2011. According to the brewery, the non-renewal of the Asahi agreement is not expected to have any material financial impact to them for the year ending Dec 31, 2023.