Asahi Group Expands in Australia with Focus on Soft Drinks

Asahi Group, Japan’s brewing giant, continues to grow in Australia. Five years after acquiring Carlton & United Breweries, the focus has shifted to soft drinks. CUB, Australia’s largest beer maker, operates six breweries and employs 1,700 people. Melbourne’s Abbotsford brewery, a CUB asset, produces 300 million liters annually.

Asahi’s 2019 acquisition of CUB from Anheuser-Busch InBev cost 16 billion Australian dollars. By 2023, Asahi held a 59% share of Australia’s mid-priced beer market. Following the acquisition, Asahi enhanced employee morale by promising no future sales and investing in long-term growth.

Asahi’s Oceania region, including Australia, contributed 24% of revenue and 40% of core operating profit in 2023. Marketing strategies, such as sports sponsorships, and environmental initiatives, including plastic bottle recycling, strengthen its presence.

Australia’s population growth, in contrast to Japan’s decline, fuels economic optimism. Asahi is pivoting to non-alcoholic and low-alcohol drinks, aiming for a 20% sales mix by 2030. Recent acquisitions include Never Never Distilling, a luxury gin maker.

Asahi’s strategy involves leveraging synergies, avoiding antitrust issues, and exploring unique acquisitions. Financial stability, despite no imminent major deals, positions Asahi for future growth.