[Company analysis] Kirin Holdings Company, Ltd (キリンホールディングス)

「Kirin Holdings Company, Ltd (キリンホールディングス)」is a holding company of the「Kirin Group」which includes, a beverage business company,「Kirin Brewery Co., Ltd.,(キリンビール株式会社)」. This「Kirin Brewery」is major  Japanese beer manufacturer, along with「Asahi Brewery(アサヒビール)」and「Sapporo Brewery(サッポロビール)」. It originated in「Spring Valley Brewery(スプリングバレー醸造場)」, which brewed and sold beer to the general consumer for the first time in Japan, and is said to be a pioneer in the Japanese beer market. The number of consolidated employees is about 30,464.

 

1. Company Profile

2. Summary and Features

3. Major Business

4. Financial Information

 

 

 

1. Company Profile

 

※Unit is JPY million, as of 2019

Company name	Kirin Brewery Co., Ltd.
Company name (Japanese)	キリンホールディングス
Date of establishment	Saturday, February 23, 1907
Headquarters location	〒164-0001 東京都中野区中野4丁目10番2号
Capital	102,045
Consolidated sales	1,930,522
Consolidated operating profit	199,327
Consolidated total assets	2,303,624
Consolidated capital	1,200,920
Capital adequacy ratio	52.1%
Consolidated number of employees	30,464

 

 

 

2. Summary and Features

 
In 1807, 「Spring Valley Brewery」was started by Norwegian-American William Copeland in Japan. But this company was purchased by「Mitsubishi Zaibatsu(三菱財閥)」 in 1885. Then As a member of 「Mitsubishi Zaibatsu」,「Kirin Brewery」was established as of 1907. After World War II, their production has been steadily increasing, and since 1954 it has gained more than 50% of the beer market share in Japan.

However, in 1987, 「Asahi Brewery」 released "Asahi Super Dry(アサヒスーパードライ)" and this brang down the 50% market share of Kirin Brewery in 1988. To beat this new challanger, "Kirin Malt Dry(キリンモルトドライ)" and "Kirin Ichiban(一番搾り)" was released in 1989 and 1990 each. However, "Asahi Super Dry" overcame the both, it still keep the top share in Japanese beer market.

On the other hands, in the new beer product market, there is still a fierce competition with「Asahi Brewery」. Especially in the happoshu(発泡酒, Low-malt beer) market, Kirin still has the top share. Nowadays「Kirin Brewery」 accounts for 37.7% of total beer shipments, including Happoshu, based on 2009, slightly exceeding 37.5% for「Asahi Breweries」. Apart from beer business,「Kirin Group」also entered softdrink market by establishing「Kirin Beverage Company, Limited(キリンビバレッジ株式会社)」since 1953.

In addition, through「Kyowa Hakko Kirin(協和発酵キリン)」, a subsidiary of「Kirin Holdings Company」, they are implementing businesses in the pharmaceutical and biochemical fields. It mainly conducts research activities on cancer, kidney, immunity and allergy, and central nervous system.

For oversea market,「Kirin Holdings Company」 is actively engaged in expansion as a comprehensive beverage company. Currently, their overseas sales account for 27% of total sales, with a particular focus on liquor sales in Oceania and Southeast Asia. This company acquired「The Myanmar Brewery Company(MBL)」in 2016, and they are now holding 80% market share in the Myanmar market.

 

3. Major Business

 

 ■ Beer business
「Kirin Brewery」has popular beer products such as "Kirin Ichiban(キリン一番搾り生ビール)", "Kirin Green Label(キリングリーンラベル)", "Kirin Nodogoshi(キリンのどごし)". In the craft beer market, this company also operates 「Spring Valley Brewery(スプリングバレー醸造場)」and「Tap Marche(タップ・マルシェ)」in Japan.

■ Beverage business
「Kirin Beverage Company」is charge of beverage business of「Kirin Group」and they have developed a number of well-known products, including "Afternoon Tea(午後の紅茶)", "Kirin FIRE(キリンFIRE)", and "Kirin Namacha(キリン生茶)", which boast top-class sales in the Japanese tea market. 

■ Pharmaceutical business
In pharmaceutical business, ethical drugs account for approximately 75% of total sales. About 23% is in the biochemical business. In the field of fermented products of various amino acids,「Kyowa Hakko Kirin」 and 「Ajinomoto(味の素)」are rival.

 

 

4. Financial information

 

※Unit is JPY million

		2016	2017	2018
Consolidated sales		1,853,937	1,863,730	1,930,522
Consolidated operating profit		181,982	194,318	199,327
Consolidated total assets		2,422,825	2,399,082	2,303,624
Consolidated net assets		959,188	1,229,206	1,200,920
Breakdown of sales	Beverage business・Japan	1,061,614	1,050,975	1,078,348
	Beverage business・Oceania	357,511	348,637	329,499
	Beverage business・Other overseas	70,980	99,948	167,409
	Pharmaceutical business	341,423	346,708	339,274
	Others	22,410	17,462	15,992