Asahi beer aims for upmarket Chinese drinkers

Asahi, the Japanese beer brand, is targeting a big expansion in the Chinese market as it moves beyond Japanese restaurants as a distribution channel and harbours global brand aspirations in order to do it.

Why Asahi’s expansion matters

China doesn’t just have a vast population, its taste for beer is growing at a time when Japan’s is shrinking. Between 2022 and 2027, the beer market in China is forecast to grow 41%. Asahi, which also owns the Peroni, Pilsner Urquel, and Grolsch brands, seeks a foothold in this growth.

Its strategy is based on price rather than volume – it hopes to charge around 50% more for an equivalent serving as a local brand – and has plans to establish itself as a beer with taste as its main differentiator. The Japanese connection and the nation’s brand will also be critical.

What’s going on

The South China Morning Post reports the news based on an interview with managing director of Asahi Beer Asia, Kinyi Choo, who explains to the paper its new China strategy. It will begin in some of the biggest cities in the country, including Shanghai and the Greater Bay Area comprising Guangdong, Hong Kong, Macau, and Shenzhen.

Asahi is “very much focused on being the leader in the Japanese channels rather than the whole market,” Choo says, but plans to expand the number of channels to include stores, more restaurants, and hotels.

Deploying the Asahi Super Dry brand as its flagship, the company believes that e-commerce will be critical, if challenging. It is planning to work across Taobao, Douyin, and Jing Dong with the potential to engage in livestream commerce – an emerging space for higher-end brands.

“Japanese culture and innovation, in fact everything Japan, resonates really well with Asian consumers, and we will ride and use this to strengthen our premium positioning,” Choo tells the Post.

Sourced from the South China Morning Post, WARC