Kirin buys stake in Fraser & Neave

Earlier last week I posted about the current dilemma Japan faces with decreasing consumer demand coming from Japanese beer drinkers. I outlined one strategy seemingly all major suppliers were taking to counteract this effect: buying stake in foreign beer companies. Just this past week, Japan's largest beer maker, Kirin, did just that.

On Monday, July 26th, Bloomberg Businessweek reported that Kirin bought $974M USD worth of stake (which translates to 14.7% or 205.5 million shares) in Fraser & Neave, the company that produces Tiger beer in Asia. (read the original story: here). Today, the transaction was completed.

Kirin's purchase marks the first such major transaction since its failed attempt to merge with Suntory this past February. Hirotake Kobayashi, Kirin's managing director explains,

“This deal will give us a base in south-east Asia, an area where we have been weak. The stake is small, at 14.7 per cent, but it is strategically important."

Kirin also owns 48% of Philippines beer maker San Miguel and has several partners throughout China and Australia.

The beer industry is not the only industry to participate in expanding its foreign presence. Clothing retailers and security companies have been doing the same and have been seeing positive results. Hopefully, Asian beer makers will see same with the much needed boost in global exposure.

Check out where you can drink Kirin and other Asian brews in Chicago on the BeerBin homepage.