Japan: Asahi to postpone opening of new brewery in Japan due to soaring construction costs

Asahi Group Holdings will postpone the opening of a new beverage factory in Japan by three years to 2029, the maker of Super Dry beer said on November 10, hit by soaring construction costs.

The new brewery in the southwestern city of Tosu in Saga prefecture will produce beer, soft drinks and other beverages, supplying the bulk of the shipments for the island of Kyushu.

Construction and facilities costs are expected to roughly double from an earlier estimate of about 40 billion yen ($263 million) on a run-up in materials prices.

Asahi will keep its Hakata brewery in the nearby city of Fukuoka open through the end of 2028 as a stopgap measure. That site was originally slated to shut down at the end of 2025, with Tosu taking over the capacity.

The Tosu plant will be an environmentally friendly facility that saves energy and incorporates carbon capture technology. The delay will have a minimal impact on 2023 earnings, Asahi said.

Asahi's revenue grew 9.4% on the year to 2.02 trillion yen for the nine months ended September in results out on November 10 - a record high. Core operating profit rose 12.9% to 199.6 billion yen, lifted by price hikes.