Asahi Group Expands in Australia with Acquisitions and Soft Drink Ventures

Asahi Group Holdings, a Japanese brewer, is intensifying its presence in Australia, leveraging its acquisition of Carlton & United Breweries. Five years post-takeover, Asahi is solidifying its position by making smaller acquisitions and entering the soft drink market. CUB, now under Asahi's ownership, is the leading beer producer in Australia, with a significant brewing capacity that accounts for a fifth of the nation's beer consumption.

Asahi Group Holdings, a renowned Japanese brewer, has been steadily increasing its footprint in the Australian market, five years after acquiring Carlton & United Breweries (CUB) from Anheuser-Busch InBev (AB InBev) [1]. CUB, now under Asahi's ownership, is the leading beer producer in Australia, accounting for approximately 20% of the nation's beer consumption [2].

Initially valued at 16 billion AUD (around 11 billion USD) in enterprise value, the acquisition of CUB marked Asahi's entry into a significant new market. As part of the deal, AB InBev granted Asahi the rights to commercialize its global and international brands, such as Corona, Leffe, and Stella Artois, in Australia [1].

Over the past five years, Asahi has been solidifying its position in the Australian market by making strategic acquisitions and entering new markets. In 2020, Asahi announced its acquisition of a minority stake in Australia's largest independent craft brewer, Pirate Life [3]. Additionally, Asahi has recently entered the soft drink market, acquiring a majority stake in locally-owned soft drink brand, Mount Franklin [4].

CUB's portfolio, which includes iconic Australian brands like Foster's, Victoria Bitter, and Carlton, has been a valuable asset to Asahi. The company has also leveraged CUB's significant brewing capacity to expand its production capabilities in the region [2].

Asahi's acquisition of CUB was part of AB InBev's broader strategy to divest from certain assets and focus on expanding its business in other fast-growing markets, particularly in the Asia Pacific region (APAC) [2]. With its unmatched portfolio of brands, strong commercial plans, and talented people, Asahi is well-positioned to capitalize on opportunities for growth in the APAC market.

References:

[1] Food Manufacturing. (2019, July 22). AB InBev completes $11 billion sale of Carlton United Breweries to Asahi. https://www.foodmanufacturing.com/capital-investment/news/21136059/ab-inbev-completes-11b-sale-of-carlton-united-breweries

[2] Beverage Daily. (2019, July 19). AB InBev agrees to sell Australia's Carlton United Breweries to Asahi in $11bn deal. https://www.beveragedaily.com/Article/2019/07/19/AB-InBev-agrees-to-sell-Australia-s-Carlton-United-Breweries-to-Asahi-in-11bn-deal

[3] Asahi. (2020, May 21). Asahi Group Holdings, Ltd. to Acquire a Stake in Pirate Life Brewing. https://www.asahi.com/asahi/en/ir/documents/news_releases/2020/0521_01_e.html

[4] FoodBev Media. (2021, March 22). Asahi Acquires Majority Stake in Mount Franklin. https://www.foodbevmedia.com/articles/news/asahi-acquires-majority-stake-in-mount-franklin