Asahi has achieved what many brands of international beer could only dream – do very appreciated local brands and win.
Ten years ago, when the Japanese legendary brand Asahi tried to determine how to introduce itself into the European beer market, it turned into an enemies then a little refreshing as a reference: the high -end Italian brand Peroni Nastro Azzurro.
Soon, however, Peroni’s sales will become a much more vital reference for the Bemaker, when Asahi took the brand in 2016.
Asahi Super Dry, high -end Japanese beer emerging in Asian restaurants and an increasing number of pubs across Europe, has quietly made much larger waves in the region thanks to the series of acquisitions from his parent company in the last decade, cement of his major shot position on the continent.
The brewer raised $ 5.4 billion in revenue from Europe only last year, a jump of 13% compared to 2023 and $ 697 million in profits. Europe is now the largest Asahi market outside Japan, representing 27% of its sales in 2024.
Japan population crisis
Asahi’s company on the European market was not an accident, and a CEO Atsushi Katsuki says that it had a lot to do with the aging population of Japan.
The Japanese Ouning Age population has been faced with incessant decrease in the past 30 years, with the number of 15 to 64 years fall From a summit of 87.1 million people in 1994 to 72.8 million in 2023. This drop in working age has become an existential crisis for Japanese companies, notably Asahi.
“If you look at the Japanese beer market, since 1995, the market contracts at a rate of 1 to 2% per year, and we think it should continue,” said Katsuki Fortune During a visit to London.
In many ways, Japan serves as a warning sign for the Western world, which faces its own demographic crisis with a drop in birth rate of decades after starting to have an impact on Japan. In the meantime, however, Asahi is hay while the sun shines on the European beer market.
For a successful Japanese brewer but of niche like Asahi, the challenge of entering the lucrative but loyal sector of the brand of Europe was considerable.
Japanese brewers have created popular innovations at the national level so that the inhabitants invade its beers. Asahi’s domestic competitor, Kirin Ichiban, introduced frozen beer to Japanese drinkers, which gives their beers a frying top and helps keep temperatures below zero while customers drink. Asahi has experienced its own beers below zero in the country.
“I don’t think it works if you have a unified global marketing strategy,” said Katsuki, explaining why these innovations did not arrive in Europe.
Rather than winning Europeans with Japanese innovations, Asahi has adopted a different approach, whether you cannot beat them, join them.
Asahi bought Peroni and Dutch Lager Grolsch from Ab Inbev in an agreement of several billion dollars in 2016. The group then bought beer assets from British Brewer Fuller, Smith & Turner for 250 million pounds Sterling (then $ 326 million) in 2019.
There has been a strong evolution towards “premiumization” on the alcoholic drinks market in recent years, and beer is not different. The purchase of Peroni seemed to be a next natural step in this premium evolution.
Indeed, as part of a strategy aimed at developing its World Super Dry world sales, Asahi used Peroni sales in London as a reference before the group acquired the Italian beer brand.
At first glance, Asahi Super Dry and Peroni Nastro Azzurro seem to opt for the same type of consumer, two premium blond beers giving customers an international air when they drink.
“It is true that the value proposition of these brands is similar, in that they offer this idea that it is elegant, high -end, high -end and refreshing.”
Katsuki said that relying on the “Italians” of Peroni and the Japanese ties of Asahi have won strategies that speak to drinkers who want to live when they buy beer.
There have been other advantages to work in Europe, says Katsuki, including learning on strategies for managing profitability growth and the creation of a popular brand.
Asahi is now the number one beer supplier in Poland, in the Czech Republic, Romania and Hungary, while Katsuki says that the group is “one of the biggest players” in the super premium category in the United Kingdom.
Temperance movement of Europe
A trend in which Asahi expects Europeans to follow Japan is a movement towards temperance.
ASAHI aims at 20% of its world sales from alcohol -free drinks and with low alcohol content by 2030, compared to 12.1% now. In Japan, this figure is already around 15%.
Low alcohol beer sales in the United Kingdom increased more quickly than any other market last year, partly supported by post-Brexit regulations that charges cheaper tasks on low alcohol drinks. But it reflects a broader movement towards sobriety across Europe.
Katsuki says that his company notes a more diverse demand, even in the low and non -alcohol sector of his business, consumers demanding more variety and flavored beers to quench their thirst.
“We can see that the fact that a flavored non -alcoholic beer becomes really popular suggests the future growth of our adjacent beer category, because it gives people who choose not to drink beer or who cannot drink beer to always enjoy the culture of alcohol consumption.”
European challenges
The challenges persist for the Japanese brewer in his quest to compete with native European rivals like AB Inbev and Carlsberg.
Last year, Katsuki underlined a barley and hop shortage as a serious risk for the supply of beer across Europe. While the invasion by Russia of the great Ukraine cereal supplier has had an impact on supplies, the more existential risk comes from climate change.
The group works with Microsoft to improve the detection of crops while diversifying its production, but climate change remains an incessant risk for European beer supplies.
Another original challenge that seems to have become an increasingly European affair is that of the false continental blonde.
British drinkers were won over by Madrí, a beer on the Spanish theme with tenuous links with the country and have been fully prepared in the United Kingdom
The trend brought the Spanish CEO of Estrella to call Madri, accusing the dishonesty scanner while eating in the market share of his business.
Katsuki says that he understands why there could be frustration among producers and consumers of ambiguous beers on a national scale.
“In a way, they probably think that producers are simulating the origin of this beer,” said Katsuki.
“However, consider the impact of the climate crisis if you had to produce beer in Italy or Spain and ship it to the United Kingdom, which will increase CO2 emissions.” He added that imported beers did not have returned bottles, further reducing sustainability. »»
There are more upcoming expansion plans in Asahi. Its famous brand of Whiskey Nikka has been largely confined to Japan due to a long shortage of vital liquid, which means that only 10% of its sales are outside Japan.
Katsuki says that Nikka regularly obtains customer information requests on foreign markets, and ASAHI develops a plan to improve production.
Be that as it may, Europeans can expect to get used to a Japanese touch to their favorite drinks, even if they do not know.
Publisher’s note: a version of this article was published for the first time on Fortune.com October 1, 2024
This story was initially presented on Fortune.com
