E-Malt.com News article: Japan: Asahi to partially resume operations at its quake-hit Fukushima brewery by next month

Asahi Breweries Ltd. said on May, 9 it expects to resume operations at its brewery in Fukushima, northern Japan, by next month after it was hit by the March 11 disaster, The Wall Street Journal reports.

But the brewery, which accounts for about 14% of Asahi's domestic beer output, is unlikely to return to full capacity any time soon, so the firm is prepared to boost production at domestic breweries not affected by power outages to cope with summer demand. Asahi said it will also consider stepping up beer-making during night hours and holidays at its breweries.

Asahi President Naoki Izumiya said it is too early to gauge the future status of the firm's Nogoya plant in central Japan, to which power is provided by Chubu Electric Power Co. Earlier Monday, the power utility decided to halt the reactors at its Hamaoka nuclear power plant in Shizuoka Prefecture, central Japan, following a request from Japanese Prime Minister Naoto Kan.

Commenting on Asahi's merger and acquisition plans overseas, Izumiya said the company has no intention of changing its growth plans.

Already facing saturated demand at home, Asahi is planning to boost sales to Y2 trillion-Y2.5 trillion by 2015 through M&A activity, of which overseas sales would make up 20%-30% of revenue. Asahi's sales totaled Y1.489 trillion last year, of which overseas sales made up a mere 6.6%.

Asked about the Australian consumer regulator's opposition to Asahi's proposed purchase of P&N Beverages Australia Pty Ltd., Izumiya said the company will continue talks with authorities to gain approval for the deal.

Citing concerns about competition, the Australian Competition and Consumer Commission said in March it would oppose Asahi's bid for the nation's third-biggest soft drink maker by sales volume. In August, Asahi said it signed an agreement to buy P&N Beverages for about Y27.2 billion.


11 May, 2011