Assignment

Asahi Breweries Case Analysis

Anonymous

Asahi Breweries
(Dry Beer Implementation)
Introduction
Asahi Breweries, Ltd. has been in the Japanese beer market since its inception in 1949 where it originated through the post-war breakup of beer conglomerate Dai Nippon, which at the time had a 75% market share. The only other existing Japanese beer company prior to the post-war era was Kirin, holding the remaining 25% market share. Asahi is one of four main beer manufacturers along with its competitors; Kirin, Sapporo and Suntory companies. Kirin, being the oldest and largest company of beer producers has historically been the leader in production, sales, and market share at ~ 60%; primarily through its experience enabling the company to identify market trends and develop expansive distribution centers. The Asahi, Sapporo, and Suntory companies have generally remained competitive for the remaining 40% market share. Traditionally, lager beer as been the choice of Japanese beer drinkers and Kirin has capitalized on that tradition for decades by producing lager as its primary beer product. However, by the early 1980’s consumer tastes began to change and they desired more variety in beer choices. To meet the demand, the three smaller companies developed and marketed their own brands of draft beer which in turn enabled the market share for that specific product segment to even out. Karin reluctantly followed while maintaining its position that lager was still the beer of choice. In order to differentiate itself from its competitors and create a niche for itself, Asahi has created a new “dry beer” to offer consumers hoping to capitalize on the changing tastes of beer drinkers. Asahi’s president, Hirotaro Higuchi, has decided to invest in the implementation of the new product.