One of Japan's biggest international beverage makers, Asahi Group Holdings is set to invest more in the United States as a caution to President Donald Trump’s tariff threats.
“The U.S. doesn’t have Free Trade. We have ‘Stupid Trade’. The Entire World is RIPPING US OFF!!!” said Trump in a post to Truth Social.
Asahi is following suit as many global companies are attempting to adjust their investment strategy accordingly amid the
The iconic beverage company has a strong presence in the European and Asia-Pacific markets, however aims to grow its presence in the U.S.
By allocating US$35 million, the company will produce top-selling Asahi Super Dry beer in the country.
Chief Executive Atsushi Katsuki said the beer will begin production later this month at a plant in Wisconsin which was acquired by Asahi last year.
Katsuki also said the company is also looking to spend more on the Wisconsin facility or production facilities elsewhere in the U.S. to a range of beverages in the future.
Production and capital-expenditure plans need to be considered in the future, said Katsuki.
“We can’t ignore that,” he added on the threat of tariffs.
Currently, Asahi is imported from Italy for sale in the U.S., which could soon be jeopardised.
This comes as Trump revealed plans to place a 200% tariff on all alcohol imported from France and other European Union nations as the EU moved to impose a 50% import tax on American whiskey.
“The European Union, one of the most hostile and abusive taxing and tariffing authorities in the World, which was formed for the sole purpose of taking advantage of the United States, has just put a nasty 50% tariff on Whisky,” he said on Truth Social.
Over the decade Asahi has expanded its global reach through high profile acquisitions in Europe and Australia.
The Japanese conglomerate currently holds 50% of the Australian beer market share.
Whereas the U.S. beer market is dominated by key players Budweiser-brewer Anheuser-Busch InBev, Molson Coors Beverage and Constellation Brands.
Seeking growth in the beer business in the U.S. the company has used its San Francisco-based $70 million venture-capital fund, to invest in premium non-alcohol and low-alcohol drinks.
At 3:35 AEDT, Asahi Group Holdings Ltd (TYO: 2502) stock was trading at ¥1,910 (A$20.44) dipping slightly by 0.052% compared to yesterdays close. The stock saw a day high of ¥1,920 and a day low of ¥1,896. Asahi has a market capitalisation of ¥2.90 trillion.
Related content
