Demand for craft beer is growing in U.S.
2022.12.21 00:53
Demand for craft beer is growing in U.S.
Budrigannews.com – The chief executive of Kirin Holdings, Japan’s second-largest brewer, stated that the company wants to acquire manufacturing facilities in North America to maintain its robust growth in the craft beer market there.
Since acquiring New Belgium Brewing in Colorado in 2019 and Bell’s Brewery in Michigan in 2021, Kirin has seen sales volumes in the North American craft beer market rise by double digit percentage points.
In an interview with Reuters on Tuesday, CEO Yoshinori Isozaki stated, “Our craft beer business in North America is on a roll.”
He added, without disclosing profit margins, that North American craft beer is now the company’s most profitable segment among global businesses that include everything from probiotic health drinks to whisky.
The Fat Tire ale from New Belgium is well-known, and the American Homebrewers Association named Bell’s Two Hearted Ale the best American beer. In 2021, they merged, bringing together two of the top ten craft manufacturers in the United States.
Kirin had specialty brew deals of around 60 billion yen ($454 million) in the year finished in Spring, representing 3% of worldwide deals. This financial year, the company anticipates that will rise to 5%.
Isozaki, who has held the top position at Kirin since 2015, stated that Kirin is considering purchasing facilities from other craft brewers that are in the doldrums and have excess capacity. However, production and distribution across such a vast market as North America remain a challenge.
As Japan’s beer market continues to shrink due to an aging population and a decline in booze consumption among young people, rivals Suntory Holdings and Asahi Group Holdings Ltd are looking to expand into North America.
Kirin laid out a fortress in Australia with its acquisition of brewer Lion Nathan in 2009, and the Lion auxiliary currently runs the combination’s worldwide specialty lager tasks.
According to Isozaki, the company also wants to expand in other parts of Asia and grow its health supplements business in North America.
Kirin raised the price of canned beer in October for the first time since 2008 in Japan, where inflation has been decades-high due to rising energy costs and a weaker yen. It has also increased the cost of imported spirits and wines.
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Assuming the Ukraine emergency and its effect on costs proceeds, Kirin might need to raise costs again one year from now, Isozaki said. He went on to say that the company is getting ready to raise wages, which Prime Minister Fumio Kishida has been pushing for a lot, but he didn’t say how much.
“I believe we need to think about raising wages for employees in order to take into account the skyrocketing costs of goods and services.”
