Asahi to sell stake in Tsingtao?

Analysts seem to be crowding in on Japan’s brewer Asahi to sell its stake in China’s number two brewer Tsingtao, media reported on 27 January 2017.

Asahi bought the stake in 2009 from AB-InBev after competition authorities in China decreed that AB-InBev dispose of this stake following InBev’s combination with Anheuser-Busch in 2008.

But the purchase of the minority stake in Tsingtao didn’t produce the opportunities Asahi had hoped. Eight years later, Tsingtao still doesn’t sell Asahi’s flagship “Super Dry” lager in China. On top of that, Chinese beer consumption has been in decline since 2013 and Tsingtao’s profits are expected to have taken a hit in 2016.

Tsingtao now faces more competition from international beer brands. Since Tsingtao is already the most high-end brand among local brands in China, it is in direct competition with international brands and it has been losing market share to them. This could prompt Asahi to seek an exit.

Asahi’s 20 percent holding in Tsingtao would be worth about USD 1.1 billion based on the company’s current share price, it was reported.