Asahi Breweries has reported a 6% rise in profits for 2009, but drinks sales struggled as an improved overseas presence failed to fully offset falling demand at home in Japan.

Net profits for the 12 months to the end of December reached JPY47.6bn (US$532m), Asahi Breweries said yesterday (8 February).

Net sales for the year crept up 1% to JPY1.47bn, against JPY1.46bn in 2008.

However, an 18% rise in food and healthcare sales masked a 3% fall in alcohol drinks sales, from JPY1tn to JPY985bn. Soft drinks sales were flat against the prior year on JPY297bn.

Drinks sales suffered from an ongoing decline in demand on the Japanese market, where industry figures show the beer  market shrank by 2% in volume in 2009 to a new five-year low.

Asahi’s overseas sales leapt 81% in 2009, partly reflecting a strong performance from China’s Tsingtao Brewery, in which Asahi acquired a 20% stake from Anheuser-Busch InBev during the year.

GlobalData Strategic Intelligence

US Tariffs are shifting - will you react or anticipate?

Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.

By GlobalData

Schweppes Australia, which Asahi bought from Cadbury early last year, reported net sales up 7% in 2009, to AUD813m (US$704m).

Asahi is committed to cutting costs on its domestic market and expanding overseas sales as part of its three-year growth strategy up to 2012.

Group operating profits fell 12.4% in 2009, to JPY82.7bn from JPY90.5bn.

The group said yesterday that it plans to cut JPY11bn of costs in Japan in 2010, including JPY6bn of savings on raw material procurement costs and the streamlining of its sales force.

The firm expects net sales to rise by 2% in 2010, with a 30% increase in overseas sales, a 4% rise in soft drinks and a 1% decline in alcoholic drinks. Net profits for the year are expected to rise by 9%, with operating income up 16%.

Subscribe to Just Drinks for just £1 for 1 month

Stay ahead with unbiased news, expert commentary, and in-depth features on global topics.

As a trusted provider of data and insights, Just Drinks collaborates closely with industry leaders and professionals to offer unique thought leadership and analysis. Gain a deeper understanding of the apparel industry’s trajectory and the priorities shaping the profession.

What’s included in your subscription:
  • Personalized Access: Secure login to Just Drinks
  • Industry News & Expert Commentary: Timely updates and exclusive C-level interviews.
  • Case Studies & Deep Dives: Real-world applications and in-depth analyses.
  • Exclusive Subscriber Newsletter: Weekly top features, plus a new thematic report and webinar.

Ready to stay informed?

Subscribe to unlock exclusive content.

Already a subscriber? Sign in to access your account.

Just Drinks Excellence Awards - Have you nominated?

Nominations are now open for the prestigious Just Drinks Excellence Awards - one of the industry's most recognised programmes celebrating innovation, leadership, and impact. This is your chance to showcase your achievements, highlight industry advancements, and gain global recognition. Don't miss the opportunity to be honoured among the best - submit your nomination today!

Nominate Now