The Zhitong Finance App learned that Guotai Junan released a research report saying that since the mid to late 20th century, leading Japanese liquor companies represented by Suntory, Asahi Brewery, and Takara Brewery have sought to go overseas one after another to find new additions. With the continuous expansion of overseas business, the share of overseas revenue of the three major wine companies has continued to increase, which is a good complement to the local business line. The opportunity for Japanese sake companies to go overseas was revealed, and differentiated positioning combined with different routes to go overseas to promote an increase in the scale of overseas business. Leading domestic alcohol and beverage companies have strong brand potential and significant resource advantages. They have the ability to expand overseas, and have become an allocation priority. 1) Liquor is recommended to increase their share; 2) beer and beverage suggestions to increase their holdings.
Guotai Junan's views are as follows:
Actively expand overseas and increase the share of international business.
Since the mid to late 20th century, leading Japanese sake companies, represented by Suntory, Asahi Brewery, and Takara Brewery, have sought to go overseas one after another to find new additions. With the continuous expansion of overseas business, the share of overseas revenue of the three major wine companies has continued to increase, which is a good complement to the local business line. Between 2007 and 2023, Suntory's overseas revenue increased from 199.5 billion yen to 1.5 trillion yen, and the share of overseas revenue increased from 13.3% to 51.6%. Currently, overseas markets cover Asia Pacific, America, and Europe. Between 2006 and 2023, Asahi Breweries's overseas revenue increased from 1.4 trillion yen to 2.8 trillion yen, and the share of overseas revenue increased by 3.9% to 50.8%. Overseas markets covered Europe, Oceania, and Southeast Asia. In 2014-2023, Takara Shuzo's overseas revenue increased from 210 billion yen to 351 billion yen, and the share of overseas revenue increased 12.9% to 48.1%. Currently, the US is the main market, and the region's revenue share in 2023 is 24.8%.
The opportunity for Japanese sake companies to go overseas was revealed, and differentiated positioning combined with different overseas routes to promote the increase in the scale of overseas business.
1) Through endorsements of international awards, Suntory enhances overseas popularity, and combines the export of Japanese culture with the popularity of the convenience store industry to create an opportunity to go overseas. It then positioned high-end oriental spirits, expanded its footprint and strengthened resources through acquisitions and joint ventures. 2) Through continuous optimization of the brewing process, Asahi Breweries has formed a strong product strength, multiplied with international honors to expand its brand influence, and opportunities to go overseas were revealed. It then positioned high-end beer, entering mature overseas markets. Through active acquisitions and channel cooperation, the expansion strategy progressed in stages from initial layout and diversification to high-end. 3) Takara Sake Brewery positions traditional Japanese alcoholic beverages and takes advantage of Japanese immigration and culture to go overseas. It then positioned traditional Japanese table wine, adopted overseas localization management, established a local R&D and production system, and gradually carried out channel cooperation and business acquisitions to expand the overseas distribution network.
The main routes for leading Japanese sake companies to go overseas can be reduced to acquisitions, joint ventures, and channel cooperation.
Reviewing Japan's three leading liquor companies, the overseas route mainly focuses on several aspects: 1) acquisitions, such as Suntory's acquisition of Beam; Asahi Brewery's acquisition of SAB Miller's business in Western and Central Europe; 2) joint ventures, such as Suntory's joint venture with Tsingtao Brewery, and Asahi Brewery's joint venture in Hangzhou, Yantai, Quanzhou, Beijing and other places when it first entered China; 3) Channel cooperation, such as Asahi Brewery's regional sales cooperation with Boon Rawd Brewery and Carlsberg, Takara Shuzo, Foodex, and Keta Food Reach regional sales cooperation, etc. The acquisition enabled the company to rapidly strengthen its international brand power, production and channel resources. Joint ventures helped use local resources to effectively expand overseas markets, and channel cooperation helped enter overseas distribution systems to reach target customers. In the process of going overseas, Chinese alcohol and beverage companies can adopt different combinations of strategies at different stages of expansion according to the structural characteristics and investment opportunities of the target market.
Risk warning: food safety issues, industrial policy adjustments, further intensification of market competition, etc.