Asahi Faces Near-Term Headwinds, but Strong Brands Should Support Margin Improvement

We view Asahi’s laser focus on the core beer business positively. The company has established strong market positions in Japan, Australia, and Europe. Most recently, it has extended its reach to the African market through the acquisition of East African Breweries. The strengths of Asahi Super Dry, the number one beer brand in Japan, should allow the company to monetize the product mix shift within the Japanese beer market.