Asah Group is reluctant to shrink its business map in China.

Recently, Asa japanese beer, Tsingtao Beer's second-largest shareholder, announced that it intends to close its position and transfer its 19.99 percent stake in Tsingtao Beer. This is asail Group after the sale of agricultural, milk companies and Kang Shifu drinks in China, another contraction of the business map in China.
same time, Asa japanese group has acquired eight European beer brands since last year. Industry analysts believe that asa japan's exit from the Chinese market is clear, the important reason is that its investment in China's products and projects for many years failed to open the market, so that asa japan Group to re-judge the Chinese market, and then to other markets.
Cooperation 7 years
Asah Brewery did not open the market in China
October 12, Tsingtao Brewery announced that "for commercial reasons", Asah Brewery Co., Ltd. of Japan intends to clear its position to transfer its 19.99 percent of Tsingtao Beer shares, which means that the two sides up to 7 years of cooperation is coming to an end.
Tsingtao Beer did not account for the reasons for asaton beer withdrawal in the announcement. Some analysts believe that behind it is actually asa japan beer for many years can not open the Chinese market helpless action.
public information shows that in 2009, Asa japanese brewery Co., Ltd. (later restructured by Asa japanese group and held its shares) bought a 19.99 percent stake in Tsingtao Beer from the former Belgian InBever Beer Group for $666 million. At the beginning of the equity stake, Asa japan Group hopes to use Tsingtao Beer developed sales channels to promote the sale of Asa japanese group beer products, and Asa japanese Group can also help Tsingtao Beer in the Southeast Asian market.
Asah's president, Lu Mingshan, has previously said that Asah's investment in Tsingtao Beer is entirely from a financial point of view, but also hope to develop a broader, can make full use of Asah's beer technology or brand business relationships, in order to consolidate its position as a high-end beer brand.
year, however, Asa japanese beer's abactobactos were all but dead.
data show that in 2016, China's top five beer market enterprises are China Resources Snowflake, Tsingtao Beer, Berwei InBever, Yanjing Beer and Carlsberg, Asah and other Japanese brands of beer market share is small. Fang Gang, a beer marketing expert, believes that the taste style and price "unappetist" is one of the factors in Asah's poor performance in China.
the first half of this year, the beer industry ended nearly three years of downward trend, Tsingtao beer revenue and net profit achieved 2.15 percent and 7.43 percent growth, respectively. And Asah Beer has not been able to share the dividends of the recovery of the industry, they want to "break up" with Tsingtao Beer. Dong Wu Securities analysis that asa japan Group wants to sell its holding of Tsingtao Beer shares, the main reason or for Tsingtao Beer to expand the Chinese market for Asa japan is limited, and Asashi Group has not obtained part of the operation control of Tsingtao Beer.
" Asa japanese group into Tsingtao Beer, just a financial investment. "Mr Fang said there was no brand, channel or management interweaving, so it was difficult to borrow from each other and open up new markets." Asa japanese beer has been edwined in the Chinese market, even dragging down Tsingtao beer. "
investment losses
the business map in China shrinks
In fact, since 2016, asail Group has been withdrawing from the investment map in China.
September 2016, Asa japan Group announced the transfer of its 10% stake in Kang Shifu Asa japanese Beverage Holdings Co., Ltd. to Master Kang and his parent company, Top New International Group, for a transfer price of approximately 33.4 billion yen (approximately RMB2 billion). In June, Asa japanese group transferred the remaining 20.4 per cent of its shares to Master Kang, who offered about $612m ($4.2bn). This means that the 13-year history of the drinks joint venture is over.
December 2016, Asa japanese group transferred its 100% stake in Asa japanese dairy and 100% stake in Asa japanese agriculture to New Hope Dairy for 54.9991 million yuan and 27.5766 million yuan, respectively.
, Asa japan Group in 2006 and 2008, respectively, the establishment of Shandong Asa japan Green Source Agricultural High-tech Co., Ltd., Shandong Asa japan Green Source Dairy Co., Ltd.
as the green source in Shandong Laiyang lease land of about 1500 acres. In 10 years, Asah Green Source Farm used the first 5 years of "cultivation", and adhere to the standards of not using fertilizer, pesticides and so on. However, high production costs, logistics costs and hard-to-expand sales have kept Asa japanese agriculture losing money for a decade.
Anth Asah Brewery (China) Investment Co., Ltd. responded to a Beijing News reporter on October 30th that "we are not just transferring assets in the Chinese market." This is one of the measures taken by Asa japanese groups based on the policy of 'further building a portfolio that values return on assets'. The
believe that asa japan Group's many investment losses in China stem from its lack of understanding of China's national conditions, serious "water and soil." According to the analysis, Asah Beer lacks a voice in the Chinese market, Asah Milk has not been able to open up sales for more than a decade, and its ultra-high-end agricultural products exceed the actual consumption level, resulting in sustained operating losses, which is unsustainable.
In addition to the above investments, Asah Group's investment projects in China include Asah Beer (China) Investment Co., Ltd., Beijing Beer Asah Co., Ltd., Yantai Beer Qingdao Asah Co., Ltd. and Shenzhen Tsingtao Beer Asah Co., Ltd.
, Beijing Beer Asashi Co., Ltd. was established by the former Beijing Beer and Asashi Beer, Itochu Corporation. Yantai Beer Tsingtao Asashi Co., Ltd. is a joint venture between Yantai Beer and Tsingtao Beer, Asashi Beer and Itochu Corporation.
the market, Beijing beer and Yantai beer sales are less. Beijing Beer has sold less than 10,000 products online since it announced the opening of Tmall's flagship store in November 2016.
is focusing on the European market
as the focus shifts to the European market
while its business in China shrinks, Asah Group is investing heavily in the European market.
Last year, Asa japanese group announced a 2.55 billion euro acquisition of three European brands of beer owned by former South African Miller (which has been acquired by Berwick InBever), followed by a 7.3 billion euro acquisition of five Eastern European brands of beer by Berwick InBever at the end of last year.
first half of 2017, Asa japanese group revenue was 937.375 billion yen, up 20.4 percent year-on-year, while net profit was 43.303 billion yen, up 40.8 percent year-on-year, according to data. Despite the increase in performance, huge acquisitions of European beer projects still require significant capital transfers.
analysis suggests that Asah May may have used a series of asset sell-offs in China to raise funds for its European acquisitions.
Asah Said it was "not crafting its stake in China to raise capital for investment in the European market", but that "as a result, the funds obtained from future equity transfers may be used to repay loans made in the acquisition of European companies". For other joint ventures in China, asa japan has no plans to divest.
" Asa japanese group to withdraw from the Chinese market, an important factor is to enter the European market. Fang Gang, a beer marketing expert, told the Beijing News that in the international beer industry, Asah Beer has no competitive advantage and lacks a voice in the Chinese market, having to withdraw from the Chinese market when it turns to the European market.
, a Chinese food industry analyst, said: "Asa japan already has a new target in emerging markets, and overall, opting out is a reasonable choice." Wang
, a reporter for the Beijing News, wrote in this edition.