[Company analysis] Sapporo Holdings Ltd. (サッポロホールディングス)

「Sapporo Holdings Ltd. (サッポロホールディングス)」is a holding company with「Sapporo Brewery(サッポロビール)」as its core company.This company is one of the three major Japanese brewery, with「Asahi Brewery(アサヒビール)」and「Kirin Brewery(キリンビール)」. Its origin is the「Kaitakushi Brewery(開拓使麦酒醸造所)」, which was established in Sapporo in 1876 under the insturction of Kiyotaka Kuroda(黒田清隆). The polar star drawn on the label of Sapporo Beer was the insignia of the「Hokkai Kaitakushi(北海開拓使)」who was directly involved in the establishment of 「Sapporo Brewery」. The number of consolidated employees is about 7,858.

 

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	Sapporo Holdings Ltd.
Company name (Japanese)	サッポロホールディングス
Date of establishment	Thursday, September 1, 1949
Headquarters location	〒150-8522 東京都渋谷区恵比寿四丁目20番1号
Capital	53,886
Consolidated sales	521,856
Consolidated operating profit	10,828
Consolidated total assets	639,692
Consolidated capital	164,735
Capital adequacy ratio	25.8%
Consolidated number of employees	7,858

 

 

 

2. Summary and Features

 
「Kaitakushi Brewery」was founded in 1876 and privatized in 1887 by the「Okura Zaibatsu(大倉財閥)」then it became 「Sapporo Brewery」. Later, To form「Dainippon Beer Company(大日本麦酒株式会社)」 in 1906,  「Sapporo Brewery」, 「Japan Beer Brewery(日本麦酒醸造)」and「大阪ビール(Osaka Brewery)」integrated its operations and management. And this company monopolized Japanese beer market during the World War II.

After the end of World War II, 「Japan Beer Brewery」was spun off from 「Dainippon Beer Company」. At that time, the Japanese beer market began its Warring States period,「Japan Beer Brewery」had top share only from 1949 to 1952 and after 1954, it was overtaken by「Kirin Brewery」and「Asahi Brewery」and fell to third place.

In order to overcome this situation,「Japan Beer Brewery」had revived the "Sapporo Beer" brand in 1957, and they succeed in regaining the second place in 1961. Along with this, in 1964, 「Japan Beer Brewery」changed its company name to 「Sapporo Brewery」.  And as a next move, they bought beer division from「Takara Brewery(宝酒造)」in 1967 and enhanced their manufacturing capability.

However, they could not regain top share in beer market until now. From 1987, mega-hit beer "Asahi Super Dry" was released and market share of 「Sapporo Brewery」eventually dropped to No. 3. And from 2008, it also was overtaken by 「Suntory(サントリー)」with "The Premium Malts" and now their beer market share ranking dropped to No.4.

 

 

 

3. Major Business

 

■ Liquor business
「Sapporo Brewery」 are currently conducting business in Japan and overseas.

■ Food and beverage business
Focusing on "Pokka Sapporo Food & Beverage Co., Ltd.(ポッカサッポロフード&ビバレッジ株式会社)", this company are developing a wide range of businesses, such as manufacturing and selling food and beverages in Japan and overseas, and operating cafe chain stores.

■ Real Estate Business
By「Sapporo Real Estate Development(サッポロ不動産開発)」, which was launched in 1988, they are developing our business around Sapporo Group's hometowns, Sapporo, Ebisu, Ginza, and Nagoya.

 

 

 

4. Financial information

 

※Unit is JPY million

		2016	2017	2018
Consolidated sales		541,847	536,585	521,856
Consolidated operating profit		20,267	12,806	10,828
Consolidated total assets		626,351	664,731	639,692
Consolidated net assets		166,380	175,710	164,735
Breakdown of sales	Japan domestic liquor business	279,476	261,489	250,867
	International business	65,400	78,626	79,521
	Food and beverage business	137,918	132,092	127,219
	Restaurant business	28,120	28,639	27,569
	Real Estate Business	22,900	23,893	24,483
	Others	8,031	11,846	12,198