Sapporo to close two breweries
In order to reduce costs and combat over-capacity, Japan’s third largest brewer Sapporo Breweries Ltd. will shut down two breweries, one in Sapporo and another one in Kawaguchi, Saitama Prefecture by December 2003. The closing of the two plants, of which the Sapporo brewery is one of the city’s main tourist attractions, will cost Sapporo more than ¥14 billion and leave it with just six domestic breweries. Although Sapporo introduced low malt beers before Asahi entered the segment and even reported a profit increase for the year ended December 2001 while Kirin Brewery Co. posted a profit decline, Sapporo did not see that the writing was on the wall when in February this year Kirin launched a low malt beer costing ¥10 less than the ¥135 average for low malt brews... and came too late..
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