[Company analysis] Asahi Group Holdings (アサヒグループホールディングス)

「Asahi Group Holdings(アサヒグループホールディングス)」 has「Asahi Breweries, Ltd. (アサヒビール)」as their core business company and it is the strongest Japanese beer company even compare with「Sapporo Brewery(サッポロビール)」and 「Kirin Brewery(キリンビール)」, since they launched "Asahi Super Dry". Even though this Japanese beer market is known for its severe competition, Asahi Breweries have maintained their top market share for 33 years. Now「Asahi Group」is about to expanding their business territory not only in beer market but also in various food-related fields. The number of consolidated employees is about 22,194.

 

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	Asahi Breweries, Ltd.
Company name (Japanese)	アサヒグループホールディングス
Date of establishment	Thursday, September 1, 1949
Headquarters location	〒130-8602 東京都墨田区吾妻橋1-23-1
Capital	182,531
Consolidated sales	2,120,291
Consolidated operating profit	221,383
Consolidated total assets	3,079,315
Consolidated capital	1,149,647
Capital adequacy ratio	37.3%
Consolidated number of employees	22,194

 

 

 

2. Summary and Features

 
The core business entity of「Asahi Group Holdings」is「Asahi Breweries」who has top market share in Japanese beer market. Some says competition in this market is extremely harsh but Asahi Breweries has a continuous top share of over 50%. In world beer market, they are fourth in world ranking. This alcoholic beverages sales accounts for more than 50% of total sales, so the impression that "Asahi = beer company" is very strong

However, before the launch of "Asahi Super Dry",「Asahi Breweries」was not so overwhelming company in Japanese beer market. Although there is a long history since 1889, they are always inferior than 「Sapporo Brewery」and「Kirin Brewery」in market share. 

But, in 1987, "Asahi Super Dry" was released and the situation changed. Immediately after its launch, it caused a "dry war" in the Japanese beer market and became the savior who rescued the「Asahi Group」that had been in danger of bankruptcy. Today, it become a representative product of the Asahi Breweries and and the most popular giga-hit beer product in Japan.

However, this beer business is not only option for this coporate group. In fact, 50% of their sales rely on beer market but another 50% comes form various Asahi companies such as 「Asahi Soft Drinks」,「Asahi Group Foods(アサヒグループ食品)」, 「Asahi Biocycle」who manufactures fertilizers with microorganisms, a business IT system solution company「Asahi Business Solutions」and 「Asahi Business Solutions」who performs new construction and maintenance. Especially in the softdrink market, with「Coca-Cola Japan(日本コカ・コーラ)」,「Suntory Beverage & Food(サントリーフーズ)」,「Itoen(伊藤園)」,「Kirin Beverage(キリンビバレッジ)」, 「Asahi Soft Drinks」is also sometimes said to be the 5 top class beverage company. 

In recent years, the「Asahi Group」has tended to focus on business expansion. In 2007, they entered into a business alliance with「Calpis」, and in 2012 they finally purchased 「Calpis」completely. In 2016, this company group also purchased five eastern European beer brands, including the「Pilsner Urquell」of Czech Republic, for 9 trillion yen.

 

 

 

3. Major Business

 

■ Liquor business
Asahi's signage business, and the core business of Asahi Breweries. It is the No.1 beer market in Japan and the strongest Japanese beer with a market share of 50% or more.

■ Beverage business
Asahi drinks have been added to the lineup, including "Mitsuya Cider(三ツ矢サイダー)", "16 tea (16茶)" and "Calpis(カルピス)" since 2012.

■ Food Business
This company manufactures and sells sweets, health supplements, etc., centered on「Asahi Group Foods(アサヒグループ食品)」. they also hold the top market share in the Japanese market for tablets and baby foods.

 

 

 

4. Financial information

 

※Unit is JPY million

		2016	2017	2018
Consolidated sales		1,706,901	2,084,877	2,120,291
Consolidated operating profit		148,486	196,368	221,383
Consolidated total assets		2,094,332	3,346,822	3,079,315
Consolidated net assets		846,105	1,152,748	1,149,647
Breakdown of sales	Liquor business	950,438	942,016	886,740
	Beverage business	355,991	366,012	360,290
	Food business	109,130	112,184	114,652
	International business	247,760	618,526	710,384
	Others	43,581	46,137	48,223