Asahi Group Holdings of Japan is setting its sights on overseas acquisitions, particularly in the United States and other markets, with the ambitious goal of quadrupling sales of its flagship Super Dry beer by 2030, according to its chief executive.
The beverage giant recently took a significant step towards achieving this objective by announcing its acquisition of Wisconsin-based Octopi Brewing. This strategic move will enable Asahi to produce Super Dry in the U.S., eliminating the need for imports from its European facilities.
While the company continues to explore merger and acquisition opportunities in emerging markets across Africa, Asia, and South America, Asahi’s President, Atsushi Katsuki, noted the absence of suitable targets in the U.S. market.
Acknowledging investor concerns regarding Asahi’s limited presence in the U.S., Katsuki emphasized the importance of the American market, highlighting its status as the largest market for beer and the sole growing market among developed nations in terms of population.
Despite the significant growth potential in the U.S., Katsuki indicated that further takeovers by Asahi in this market are unlikely to materialize until next year at the earliest.
Currently, North America represents only 6% of Super Dry’s overseas sales, which currently total approximately 2 million hectoliters.
Asahi’s pursuit of expansion in the U.S. mirrors similar efforts by other Japanese companies aiming to tap into growth opportunities outside their home market, which faces challenges of shrinkage and aging demographics.
Last year, Japanese firms collectively engaged in an overseas buying spree valued at ¥8.1 trillion ($54 billion), marking the highest level of activity since 2019, according to LSEG data.
Katsuki emphasized that acquisitions are no longer solely driven by economic considerations but are sometimes necessary for companies to undergo transformation. He cited Nippon Steel’s proposed acquisition of U.S. Steel for $15 billion as an example, despite facing opposition from U.S. lawmakers and former President Donald Trump.
Addressing concerns over potential protectionist measures, Katsuki expressed confidence in the eventual success of the merger, suggesting that uncertainty surrounding political developments underscores the importance of proactively managing debt refinancing.
Asahi has prioritized debt reduction following its previous major overseas acquisitions, including the acquisition of Anheuser-Busch InBev’s Australian operations in 2020 and SABMiller’s Central and Eastern European businesses in 2017.
Although Asahi’s shares have experienced modest growth over the past year, they have underperformed compared to the broader Nikkei average, which reached a record high recently.
