business

Asahi buys Fuller's beer business for $327 million

8 Comments

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And this is in spite of Brexit. I wonder what WTO tariffs will be on beer exported to the EU in the event of a no-deal. Presumably 'small beer' to the lovers of London Pride.

-2 ( +0 / -2 )

Amazing, paying 327 USD for NOT owning a brand.  It is a global license Asahi buys, and with it, an old factory building which can only serve as a museum in a couple of years.

Asahi is panicking on the decreasing sales in the home market and overpays for this property. The brand has very little expansion potential. British beers are not the best fit for international market unless they are commonwealth markets and there, the brand is already represented.

In general, beer sales are decreasing, not only in Japan and growth markets are few.  Asahi should have bought the pub and hotel business from Fuller's but they are not crazy, they keep that, meaning they hold distribution control. Asahi could have pushed it's beers and other brands through that channel, now, they even depend on Fuller's to keep the distribution in the Fuller pubs and hotels. Sure, there will be , as part of the contract , an assured period of distribution guarantees, but still, Asahi does not have that long term control.

Anyway, there is an history of Japanese brewers overpaying for international brands, and this is one o them.

-2 ( +1 / -3 )

Fuller's will retain ultimate ownership of its brand name, while Asahi will hold the global license to use the trademark.

$327m for a brand name in a country where beer sales are sinking like a stone and pubs are closing right, left and centre. Smart bit of business by Fuller's, well done lads.

1 ( +1 / -0 )

Why are the pubs "Closing left right and centre"? Are the British people drinking less, or is it the changing nature of the population with more and more people who are total abstainers for religious reasons?

0 ( +1 / -1 )

I'm from the North of England but have only ever seen/drunk London Pride on a plane.

With craft beer talking hold among the young and further competition from real ale in the UK, I can't see much expansion potential.

1 ( +2 / -1 )

London Pride is not a particularly good beer in my opinion, but then again most of the beer in London is overpriced pish.

Why are the pubs "Closing left right and centre"?

More young people are abstaining, beer duties & business rates are high, supermarket bought ale is cheap, and the market is adjusting as more people want more from a pub (better food, more craft beers, fancy gins etc). Pubs that are run well do well, but even in my small village of 6,000 people two of the 13 pubs have closed in recent years and a couple of others are struggling.

0 ( +0 / -0 )

London voted to remain within Europe... so I guess it's something to be expected that a London brand exits the exit whilst it can.

0 ( +1 / -1 )

Gonna have to change the name to Rondon Plide.

0 ( +2 / -2 )

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