Sapporo has partnered with Carlsberg to deepen its presence in Southeast Asia.

The two breweries signed a “regional collaboration” agreement for the exclusive manufacturing and distribution of Sapporo Premium Beer in Malaysia by Carlsberg, with distribution agreements in Singapore, Hong Kong & Macau.

The new partnership comes after Asahi and Carlsberg announced they had mutually agreed to suspend their distribution agreements around the region by the end of 2023.

The move boosts Carlsberg Malaysia, which manages the Danish brewing conglomerate’s activities in Singapore and Sri Lanka and exports to Hong Kong, Maldives and Papua New Guinea, after disappointing financial results year-to-date.

“Our partnership marks the beginning of an exciting journey as we are here to build the brand over the long term, and we look forward to a successful launch next year,” said Carlsberg Malaysia Group’s Managing Director Stefano Clini

“The annual net profit impact of the non-renewal of Asahi to the Group (approximately RM30m) will be progressively mitigated by the introduction of Sapporo with effect from 2024.

Nikkei Asia reports that Sapporo has an aggressive target of selling “the equivalent of 1.5 million cases of 20 633-milliliter bottles in Southeast Asia and Hong Kong by 2026, about double Sapporo’s 2023 sales estimate for the same region.”

Sapporo’s Senior Manager of International Business Masato Konno told the same newspaper that “the Association of Southeast Asian Nations would be the closest market for a Japanese brand to gain the next top market share.”

Sapporo had previously exported beer produced in Japan & Vietnam to Singapore, Malaysia & Hong Kong.