Declining local sales push Japan’s big beer companies towards international markets
Asahi, Kirin and Sapporo have all indicated in recent weeks differing approaches to maintaining their growth. Japan’s domestic beer market has been declining for decades, and with the country’s steadily aging population and shifting consumption habits, the decline is likely to continue for the indefinite future. To maintain their expansion, the companies are aggressively eyeing overseas markets and greater product diversification.
Asahi, the largest of Japan’s four major brewing groups, is targeting the US beer market. According to Atsushi Katsuki, chief executive officer of Asahi Group Holdings, the company plan is “to acquire a sizable beer company as the ideal scenario for expanding Asahi Super Dry’s footprint in North America”. So far, a target firm has yet to be identified, says Katsuki.
Asahi has also recently acquired Octopi Brewing, a contract brewer based in Wisconsin, which can act as a production platform for accelerating the rollout of Asahi Super Dry beer to the US market. Super Dry, launched in 1987, is Japan’s top-selling beer, and is available in the US, but the company believes there is substantial potential for further sales growth.
Asahi also plans to step up the development of its low- and non-alcoholic product lines, aiming to increase their share of output to 20% of total volume by 2030, doubling the current ratio.
In contrast, Kirin, the second-largest brewing group in Japan, has the Indian beer market as its primary overseas target. In February 2024, it announced that it had increased its equity stake beyond the 20% mark in one of India’s leading craft brewers, B9 Beverages, known for its popular Bira 91 craft beer and its extensive network of Beer Cafe pubs.
Sapporo Holdings, the smallest of Japan’s major brewing groups, is also pursuing acquisitions overseas, says Masaki Oga, the company’s president. Sapporo’s senior management has come under pressure of late from activist investors who wish it to divest its large property holdings and to refocus its activities around its core activities of brewing and selling beer which have languished in recent years.
The company’s strategy is, therefore, to tidy up and possibly divest its non-essential property activities and refocus its resources on developing its beer activities, says Oga. This will likely mean acquisitions in North America and Asia, which are the most promising regions due to their market size and the company’s familiarity with them.
Oga also emphasised that the primary objective of such moves would be to expand the flagship Sapporo brand, not add new products to the portfolio. The company has managed other brands in the past, but with mixed results. It acquired San Francisco’s Anchor Brewing for USD85 million in 2017, which it eventually closed down in 2023 after 127 years of operation.
