Asahi has accomplished a significant milestone by successfully competing with popular local beer brands in the international market.
Approximately ten years ago, when Asahi, a renowned Japanese beer brand, aimed to enter the European beer market, it used the premium Italian brand Peroni Nastro Azzurro as a benchmark. This proved to be a strategic move, as Asahi acquired Peroni in 2016, thus making its sales a more vital benchmark.
Asahi Super Dry, a premium Japanese beer available in Asian restaurants and an increasing number of European pubs, has substantially impacted the region. This success is largely attributed to the parent company’s multiple acquisitions over the past decade, solidifying its prominent position in Europe. The company reported $5.4 billion in revenue from Europe last year, representing a 13% increase from 2023, and earned $697 million in profit. Europe now stands as Asahi’s largest market outside Japan, accounting for 27% of its sales in 2024.
Asahi’s expansion into Europe is partly a response to Japan’s decreasing working-age population, a trend highlighted by CEO Atsushi Katsuki. Japan’s 15-64-year-old demographic has diminished from 87.1 million in 1994 to 72.8 million in 2023, presenting an existential challenge for Japanese firms, including Asahi. Katsuki noted that Japan’s beer market has been shrinking annually by 1-2% since 1995 and anticipates this trend to continue.
In response to changing demographics in the Western world, Asahi is capitalizing on Europe’s beer market, adapting its strategies to appeal to local preferences. Domestically, Japanese brewers have introduced innovations like Kirin Ichiban’s frozen beer concept, while Asahi has experimented with sub-zero beers. Katsuki believes these innovations don’t translate well globally and, therefore, Asahi chose a different path to success—acquiring established European brands. Asahi purchased Peroni and Dutch lager Grolsch from AB InBev in 2016 and bought beer assets from British brewer Fuller, Smith & Turner in 2019 for £250 million (then $326 million).
Asahi focused on “premiumization” within the alcohol market by purchasing Peroni in a move aligned with its premium evolution strategy. Both Asahi Super Dry and Peroni Nastro Azzurro aim to attract premium lager consumers, offering a stylish and high-end international experience. Katsuki emphasized embracing cultural identities, utilizing Peroni’s Italian roots and Asahi’s Japanese heritage to effectively engage with consumers.
Operating in Europe also provided Asahi with strategies to manage profitability growth and develop a strong brand presence. Asahi has become the leading beer supplier in Poland, the Czech Republic, Romania, and Hungary, and ranks among the UK’s major players in the super-premium segment.
The company anticipates emulating Japan’s trend towards temperance in Europe. By 2030, Asahi aims for 20% of its global sales to derive from alcohol-free and low-alcohol drinks, up from the current 12.1%. Low-alcohol beer sales in the UK saw rapid growth last year, partly due to favorable post-Brexit regulations. Katsuki has observed rising demand for diverse and flavored non-alcoholic beer options, indicating future growth in adjacent categories.
Asahi faces challenges in Europe, such as competing with rivals like AB InBev and Carlsberg. The company has reported barley and hops shortages as significant risks to beer supply, exacerbated by climate change. Asahi is exploring technological solutions with Microsoft to improve crop detection and diversify its production to mitigate these risks.
Further complicating the market, faux continental lagers have gained popularity in the UK, like Madrí—a Spanish-themed beer brewed entirely in the UK. This trend prompted criticism from the CEO of Spanish brewer Estrella, who accused Madrí of deceptive marketing. Katsuki recognizes the frustration over ambiguously marketed beers but points out the environmental benefits of local production to avoid increased CO2 emissions and enhance sustainability.
Further expansion plans include the famous whiskey brand Nikka, which has faced production constraints within Japan. Katsuki expressed that Nikka frequently receives international interest, and Asahi is formulating plans to boost production.
In summary, Asahi plans to expand its influence across Europe, integrating Japanese elements into favored beverages while navigating the region’s unique market dynamics.
