Kirin's Health Science Growth Prospects Remain Uncertain; Brewery and Pharma Growth Lift Profits
Kirin is stepping up investment to transform itself into a wellness specialist over the long run. The secular volume decline in the domestic beer market has prompted Kirin to seek new growth avenues, of which it identifies wellness leveraging its pharmaceutical know-how and beverage resources as the third growth pillar. Meanwhile, margin expansion of the cash cow brewery business combined with overseas growth of the pharmaceutical sales will bolster mid-term profits. Kirin is pining hopes on the underpenetrated craft beer to invigorate the torpid beer consumption at home.