Japanese Brewer Sapporo Plans for Expansion
- 14 years ago
Business is going well for Japan’s Sapporo brewery. And now it plans to expand in Asia, starting with Vietnam.
Sapporo may be one of the smallest of Japan's major beer makers, but it's is brewing up big plans for Asia.
Overshadowed by rivals such as Kirin and Asahi, Sapporo made a $130 million profit last year and now eyes expansion, says CEO Takao Murakami.
[Takao Murakami, CEO, Sapporo Holdings]:
"It's a matter of what we plan to do in Southeast Asia as a region. Obviously, there are countries which other Japanese beer makers consider theirs. I don't have to say which countries they are but people know which companies control which ones. If possible, we would like to avoid those markets."
Sapporo, owner of Canadian brewer Sleeman, said last month it would enter Vietnam by taking a 65 percent stake in a beer joint venture there.
Japanese brewers are under increasing pressure as the home market has been in steady decline as the population ages and tastes change.
[Takao Murakami, CEO, Sapporo Holdings]:
"The current plan is to create a production plant in Vietnam and to start shipments and sales in two years time. The first step is to solidify our beer business in Vietnam. That's the top priority. And instead of exporting from Japan, we plan to expand from Vietnam to neighboring countries like Thailand and Singapore."
Kirin and Suntory have been in talks for several months on a merger to create one of the world's largest beverage and food firms, while also spending billions for industry firms in Australia and the Philippines.
Sapporo may be one of the smallest of Japan's major beer makers, but it's is brewing up big plans for Asia.
Overshadowed by rivals such as Kirin and Asahi, Sapporo made a $130 million profit last year and now eyes expansion, says CEO Takao Murakami.
[Takao Murakami, CEO, Sapporo Holdings]:
"It's a matter of what we plan to do in Southeast Asia as a region. Obviously, there are countries which other Japanese beer makers consider theirs. I don't have to say which countries they are but people know which companies control which ones. If possible, we would like to avoid those markets."
Sapporo, owner of Canadian brewer Sleeman, said last month it would enter Vietnam by taking a 65 percent stake in a beer joint venture there.
Japanese brewers are under increasing pressure as the home market has been in steady decline as the population ages and tastes change.
[Takao Murakami, CEO, Sapporo Holdings]:
"The current plan is to create a production plant in Vietnam and to start shipments and sales in two years time. The first step is to solidify our beer business in Vietnam. That's the top priority. And instead of exporting from Japan, we plan to expand from Vietnam to neighboring countries like Thailand and Singapore."
Kirin and Suntory have been in talks for several months on a merger to create one of the world's largest beverage and food firms, while also spending billions for industry firms in Australia and the Philippines.