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Asahi UK posts £14 million loss
Asahi’s UK arm, which looks after Fuller’s-owned Dark Star Brewery and Cornish Orchards Cider as well as the Peroni, Meantime and Grolsch beer brands, has reported a pre-tax loss of £14 million for 2023.
The business, which is headquartered at the Griffin Brewery in London’s Chiswick, saw its UK division’s losses plummet from the previous year’s loss of £6.4 million to 2023’s £14 million loss, marking a £7.6 million nosedive.
The company, a subsidiary of the Japanese beer giant Asahi Group Holdings, stated that it had been “impacted by the current challenging economic climate, particularly production and distribution”.
The company also admitted that it “considers a potential loss in market share and margin erosion due to the competitive pressure in the alcohol beverage industry a risk, specifically the craft beer sector of the industry which remains highly competitive”.
The last time Asahi’s UK division recorded a pre-tax profit via Companies House was when it posted £11.9 million in profit in 2021.
Asahi UK said in its results statement: “The company will continue to manufacture, distribute and sell its range of quality beers and ciders brewed at its locations in the United Kingdom and provide a full portfolio of drink products to its customers. The company’s strategic priority is to grow market share within the UK through its portfolio of premium domestic and international alcoholic and non-alcoholic drinks.”
Over the past year, around 34 employees have reportedly left Asahi UK to move on to pastures new.
The global business, which was founded in 1889, when it was called the Osaka Beer Company, is known for its Asahi Super Dry lager as well as Asahi Draft lager and Asahi Gold brands. In terms of its kudos-inducing brands however, industry sources highlight how those under Asahi’s ownership have been bought rather than nurtured. For instance, in October 2016, Asahi also completed a £1.3 billion acquisition of Miller Brands UK, also giving it control of the Peroni, Grolsch and Meantime beer brands. It has since revealed plans to close the Meantime Brewery site.
Industry sources speculate how Asahi’s moves have been shrewd in its beer brand acquisitions over the years and each decision has been strategic. The drinks behemoth has operations in the Netherlands, Italy, the UK, France and Canada however, its closure of Dark Star Brewery also showed how effectively running craft brewery acquisitions were not necessarily its forte nor its priority as each saw its brewhouses closed and consolidated to being brewed elsewhere.
Asahi UK has declined to comment on its results and the option for further comment to clarify it position.
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Asahi has gone beyond the point of diminishing returns. A superb beer, but a pint of it in my local cost £6.60p last week, way more than others and not even in London.