Japan's major brewers show big appetite for M&As

Asia's drinks industry has seen a wave of M&A activity in the first half of 2009, as Japan's major brewers look overseas to reposition themselves. The value of all deals in the sector for the first half stands at about US$8.5 billion, overtaking the 2008 total of around US$5.1 billion. These deal include Asahi's buyout of China's Tsingtao Brewery, and Kirin's acquisition of Philippine's San Miguel Brewery and Australia's Lion Nathan. Kirin and Suntory are also currently considering merging their operations, a move that could help the two gain clout in Japan's mature market.

Total beer and beer-like beverage shipments by the five major Japanese brewers for the first six months of 2009 grew just 0.2% to 217.24 million cases, marking a rise for the first time in three years. Kirin accounted for 37.5% of the market, followed closely by Asahi which captured 36.9% of the market. Suntory came third with a share of 12.7%, while Sapporo Breweries captured a market share of 12.1%. Orion Breweries got 0.8% of the market. A merger between Kirin and Suntory would be a huge threat to the other domestic players in the sector and possibly trigger further realignment.