Feeble Domestic Growth Underscores Urgency For International Expansion

The recent lacklustre financial performance of Japan's brewing giant Asahi Breweries has further reinforced our subdued domestic outlook. While Asahi has clearly benefited from the rapid emergence of the cheaper 'third beer' or no-malt category in Japan and the health awareness trend, the country's market maturity, ageing population and depressed consumer confidence will continue to weigh significantly on the brewer's top-line growth and the company's longer-term future realistically lies overseas.

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