Faced with a declining population, uncertain economic prospects and constant deflation at home, Japanese beer makers have been on a spending spree as they attempt to diversify their profit sources and solidify existing earnings bases.
Asahi will fund the purchase of Calpis, a drink popular with Japanese children, with cash in hand and by borrowing. The beer maker aims to complete the deal by October, according to Reuters.
With the purchase of Calpis, Asahi will move ahead of rival brewer Kirin Group Holdings and tea maker Ito En in Japan’s soft drinks market, but will still lag bottlers of Coca-Cola Enterprises and unlisted Suntory Holdings.
Source: Reuters
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