Kirin to close two breweries
According to media reports, Kirin is aiming to achieve sales of JPY 2.13 trillion, excluding liquor tax (USD 23 billion) and operating income of JPY 188 billion (USD 2 billion) by 2012. Kirin is already the biggest Japanese food and beverage firm but the targets, especially for the bottom line, are challenging. Estimated sales for 2009 stand at JPY 1.93 trillion (excluding liquor tax) and operating income is expected to be JPY 125 billion.
In effect, Kirin must achieve a 50 percent increase in operating income over the next three years to meet its 2012 target.
It also said it hopes to achieve a return on equity of over 10 percent in 2012, up from the current 9.3 percent.
Kirin plans to generate internal synergies and develop a leaner management structure in order to make this possible.
Closure of the Tochigi plant and the Hokuriku plant after the peak production period of 2010 is one of the measures put forward under these broad goals. The breweries, located in the Ishikawa and Tochigi areas north of Tokyo, produce around 1.8 million hl beverages annually.
As part of its internationalisation plan, Kirin this year completed the takeover of Lion Nathan in Australia and the acquisition of a near-49 percent stake in San Miguel Brewery of the Philippines.
