Beer Marketer's Insights - Asahi CEO Aims to Scale Newly Acquired African Biz to Size of its European Operations

Emerging market volatility has caused many a headache for major brewers, but Asahi ceo Atsushi Katsuki ain't letting that dampen enthusiasm for co's recent $2.3-bil purchase of a majority stake in East African Breweries (EABL) from Diageo. He plans to make EABL a key growth pillar on par with the scale of its European operations, Atsushi told Nikkei.com. The deal marks Asahi's first direct biz venture in Africa, with EABL's revenue currently equivalent to just under 5% of Asahi's group sales, article notes. "We'll bring the scale of the business on par with Europe and Oceania," Atsushi commented, each of which accounted for about 1/4 of Asahi's revenues last yr. EABL reportedly holds more than 90 share of Kenya's beer market as well as 40 share in Uganda and 30 share in Tanzania. "We aim for double-digit annual growth rates, built on the foundation of a local brand with overwhelming market shares," Atsushi added.In addition to licensed brands from Diageo, Asahi plans to distribute its own beers such as Super Dry and Peroni thru EABL. And co may eventually produce flagship Super Dry in Africa as part of its growth plans. Asahi "will make capital investments in the manufacturing plants in the three countries and will also consider production there," Atsushi told Nikkei. Then too, it plans to develop low- and no-alc drinks for African mkts to help cultivate demand.Tho far from the first enamored by Africa's growth prospects, the 3 countries under EABL's purview have "large populations and are anticipated to have future economic growth," according to Atsushi. They're also "relatively stable regions within Africa," in his view. EABL deal is initially being funded primarily thru a bridge loan, and Asahi&#39;s net debt to earnings ratio could temporarily exceed 4x, up from ~2.5x in 2024. But, Atsushi added, "at a time when acquisition deals in the alcoholic beverage industry are becoming less common, this is a rare opportunity with clear growth prospects."

Asahi CEO Aims to Scale Newly Acquired African Biz to Size of its European Operations

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