Strange times when Japanese beer conglomerates reap huge profits abroad and watch their flagship brands continue to struggle at home.
Japan’s four leading beer and beverage makers have released their earnings for 2017. And in spite of beer consumption continuing to decline in Japan three of them posted increased profits thanks to brisk sales in overseas markets.
Tokyo’s Suntory Holdings reported operating profits of around 2.4 billion dollars, up 3.2% from the year before, not a huge increase, but still up and up is good.
The Asahi Group soared an astounding 32.2% to 1.84 billion dollars in 2017 due to huge sales of their European holdings like Italy’s Peroni.
And it was also beer brands like Pilsner Urquell, Tyskie, Lech, Dreher and Ursus (which were acquired in a 2016 deal with AB InBev), combined with a scorching summer in Europe, that led to Asahi’s record 2017 earnings.
Though not as impressive a showing as the Asahi Group, Kirin Holdings posted a healthy 6.8% profit increase to 1.83 billion dollars last year.
But Sapporo Holdings lost significant ground in 2017 with a profit decline of 16% to 160 million dollars.
Again, the three Japanese brewing conglomerates showing profits last year enjoyed growing sales in Europe, Asia and the US, countering the effects of a shrinking domestic beer market in Japan.