JAPAN: Asahi Breweries concedes to slowing beer sales with brewery closure
Slowing beer sales in Japan have contributed to Asahi Breweries' decision to close one of its facilities
Asahi Breweries has announced the closure of one of its breweries in Japan.
The company confirmed yesterday (28 September) that it will consolidate operations at two of its facilities in the country, which will result in its Nishinomiya site, located in Hyogo Prefecture, closing by the end of August next year. The move, which will see Asahi's Suita brewery near Osaka absorbing the site's production, will see 130 personnel reassigned within the Asahi group.
“This new production configuration will substantially boost production efficiency across all of the company's domestic breweries,” Asahi said. The company is hoping for post-reconfiguration savings of around JPY4.5bn (US$53.7m) per year, but will book an extraordinary loss in its current fiscal year of around JPY20.5bn as a result of the closure.
Like other brewers in Japan, Asahi has countered declining domestic demand for beer by diversifying abroad. Last month, Asahi followed its takeover of Schweppes in Australia by acquiring the country's third largest soft drinks group, P&N Beverages, for US$323m.
Originally commissioned in 1927, the Nishinomiya site produces the Asahi Super Dry, Clear Asahi and Style Free brands.
To read Asahi's official announcement, click here.
The recent attempt by Asahi Breweries of Japan to buy P&N Beverages has led Ray Rowlands of Drinksinfo Ltd to delve into the bedrock of the current ownership status of Australia's beverage industry wi...
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