Japan: Asahi to consolidate two of its breweries

Japan’s Asahi Breweries announced on September, 28 that it will consolidate two of its brewery sites to expedite the “profit structure reform in its domestic alcoholic beverages business” in accordance with its “Medium-Term Management Plan 2012”.

The company will move production from its Nishinomiya Brewery to its Suita Brewery as of September 2011 to reconfigure its domestic beer-type beverages production operations.

Asahi expects this reconfiguration to improve its profit structure, enabling it to substantially surpass its Medium-Term Management Plan 2012’s targets. The company plans to reap roughly 4.5 bln yen in post-reconfiguration annual cost savings.

Asahi said it plans to book an extraordinary loss of 20.5 bln yen in fiscal 2010 in conjunction with the determination of decommissioning of Nishinomiya Brewery.

The company left unchanged its earnings forecast for fiscal 2010 (ending December 31, 201) announced on July, 30.

29 September, 2010