Why is Kirin looking beyond Japan to emerging Asian markets?
Kirin, one of Japan’s leading beer brands, has struck a deal with a south-east Asian beverage company, reflecting a broader trend for Japanese corporations seeking to expand international marketing activities in Asian growth markets.
Kirin is paying Y84.6bn ($972m) for a 14.7% stake in Fraser and Neave, the largest drinks company in Malaysia and Singapore and producer of Tiger and Anchor beers, according to the Financial Times report.
The deal highlights Japanese companies’ strategic effort to compensate for sluggish sales at home by turning to emerging markets in Asia. Kirin has made a number of acquisitions in the Asia-Pacific region over the past few years. The latest deal is expected to strengthen its currently weak position in the region.
The Japanese group, which also owns a food and beer group in Australia, has a goal to become a leading company in Asia and Oceania. Its aim is to increase its overseas sales ration from 25% this year to 29% by March 2013.
Fraser and Neave will offer Kirin a south-east Asian network, as well as the potential to tap into its Australian dairy and beverage businesses. “This deal will give us a base in south-east Asia, where we have been weak,” said Hirotake Kobayashi, Kirin Managing Director. “The deal is small but it is strategically important.”
Tags: Global Brand
