Kirin seeks more North American craft beer factories after strong growth
21/12/2022 04:51
By Miho Uranaka
TOKYO, Dec 21 (Reuters) - Kirin Holdings 2503.T ,
Japan's second-largest brewer, is looking to buy factory
facilities in North America to maintain strong growth in the
region's craft beer market, its chief executive said.
Kirin has seen sales volumes in the North American craft
beer market climb by double-digit percentage figures since
acquiring Colorado-based New Belgium Brewing in 2019 and Bell's
Brewery in Michigan in 2021.
"Our craft beer business in North America is on a roll," CEO
Yoshinori Isozaki said in an interview with Reuters on Tuesday.
North American craft beer is also now the company's most
profitable segment among global businesses that span everything
from whisky to probiotic health drinks, he added, without
disclosing profit margins.
New Belgium is known for its Fat Tire ale while the Two
Hearted Ale brand by Bell's was named the best beer in America
by the American Homebrewers Association. Their merger in 2021
combined two of the top 10 craft makers in the United States.
Kirin had craft beer sales of about 60 billion yen ($454
million) in the year ended in March, accounting for 3% of global
sales. The company expects that to grow to 5% this financial
year.
Production and distribution across such a wide geographic
market as North America remains a challenge, however, and Kirin
is considering buying facilities from other craft brewers that
are in the doldrums and have excess capacity, said Isozaki, who
has held the top job at Kirin since 2015.
Competitors Asahi Group Holdings Ltd 2502.T and Suntory
Holdings are also looking to expand their footprint in North
America as Japan's beer market continues to contract due to an
ageing population and as young people drink less alcohol.
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Kirin established a stronghold in Australia with its
purchase of brewer Lion Nathan in 2009, and the Lion subsidiary
now runs the conglomerate's global craft beer operations.
The company is also looking to expand in other parts of Asia
and to grow its health supplements business in North America,
Isozaki said.
In Japan, where soaring energy costs and a weaker yen have
led to decades-high inflation, Kirin raised canned beer prices
in October for the first time since 2008. It has also hiked
prices on imported wines and spirits.
If the Ukraine crisis and its impact on costs continues,
Kirin may have to raise prices again next year, Isozaki said. He
added that the company is preparing to raise wages, a key push
by Prime Minister Fumio Kishida, without elaborating on the size
of a potential increase.
"In terms of employees, I believe we have to think about
raising wages just to account for the soaring costs of goods and
services."
($1 = 132.1400 yen)
(Reporting by Miho Uranaka in Tokyo; Writing and additional
reporting by Rocky Swift; Editing by Edwina Gibbs)
((rocky.swift@thomsonreuters.com;))