Asahi Brewing Group is about to buy into Independent Liquor of New Zealand. This is a bizarre acquisition for the Japanese brewer for several reasons:
1. There is an alcohol consumption or cultural shift taking place in NZ, which is likely to see per capita consumption fall
2. The country's population is static - the young go to Australia, UK or Japan for work, and they are replaced by Asian immigrants or retirees who are less likely to drink beer.
3. The currency is at a high - though not as bad against the yen.
4. The economy is in a slump. Commodity prices are high, but then so is the currency
5. Japanese beers have no presences or reputation in NZ
Unless the corresponding price for the asset is good, then I don't think I'd be discarding those yen so easily. Their purchase in Australia makes more sense. I'd be buying San Miguel Brewing in the Philippines. The population is growing at 2%, and there is always the prospect of the poor, whom consume their own domestic brew, opting for a branded 'club' product.
Japanese companies seem seldom to exercise good decisions when investing in foreign markets; this looks like another case. Sorry, NZ, I'm more critical when we lose the footy...but only because I can't stand the game.
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