Maximizing
Value
SAPPORO HOLDINGS LIMITED Annual Report 2012
01 Profile
02 Creating New Value
at Sapporo
03 Our Business
04 Key Indicators
06 Financial Highlights
08 To Our Stakeholders
15 Special Feature
Maximizing Value
20 Performance Review and Plan
20 Japanese Alcoholic Beverages
22 International
24 Food & Soft Drinks
26 Restaurants
27 Real Estate
28 CSR: Selective about Our Raw Materials
30 Corporate Governance
34 Board of Directors and
Audit & Supervisory Board Members
36 Financial Section
69 Corporate Data
Contents
Contents description
Presents the goal of the Sapporo Group’s New Management Framework and our basic strategies.
The president discusses business
performance in fiscal 2012 and explains the Sapporo Group’s Management Plan for fiscal 2013 to 2014, which seeks dynamic growth.
Discusses the factors behind our growth and future development in overseas markets.
Explains the business conditions, growth strategies, and Management Plan 2013 to 2014 by segment.
Contains an interview with an outside director and explains the Sapporo Group’s basic approach to corporate governance. Introduces the reader to our Collaborative Contract Farming System, which insists on only the finest ingredients.
Statements in this annual report with respect to the Company’s plans, strategies, forecasts and other statements that are not historical facts are forward-looking statements that are based on management’s judgment in light of currently available information. Factors that could cause actual results to differ materially from our earnings forecasts include, without limitation, global economic conditions, our response to market demand for and competitive pricing pressure on products and services and currency exchange rate fluctuations.
Forward-looking Statements
All figures in this annual report are rounded to the nearest applicable unit.
Profile
SAPPORO Group, since it began brewing beer
in 1876, has been providing products
and services that satisfy customers in
two business domains: food and comfortable surroundings, while remaining focused on the
beer business. The Group has formulated the New Management Framework to be realized by
2016, the 140th anniversary of its founding, with the goal of becoming a Group that creates
value in food and is able to provide new food and comfortable surroundings to a wide range
of customers. In addition, the Sapporo Group has established breweries in Japan, Canada, and
Vietnam, and it is spreading the Sapporo brand by expanding its business in North America,
Southeast Asia, and Oceania. In January 2013, POKKA SAPPORO FOOD & BEVERAGE LTD., the
result of the management integration of the POKKA Group with Sapporo Beverage Co., Ltd.,
commenced operation. The Food & Soft Drinks business which covers soft drinks as well as
lemon-based products (flavorings) and the soup category will maximize the synergies of both
the POKKA and Sapporo groups. We will turn this business into the Group’s third source of
stable profits after the Japanese Alcoholic Beverages and Real Estate businesses as we seek to
enter a new growth stage for the entire Group.
Capital
¥ 53,887
million
Consolidated net sales
¥ 492,491
million
Founded
1876
Total assets
¥ 597,636
million
Number of employees
7,264
[ Consolidated ]
Group subsidiaries and affiliates
74 12
[ Subsidiaries ] [ Affiliates ]
International
Food & Soft Drinks
Sapporo Group’s New Management Framework
Creating New Value
at Sapporo
Japanese Alcoholic Beverages
Real Estate
2007
1 Concentrate resources on creation of high-value-added products and services
2 Engage in strategic alliances aimed at building competitive advantage and
expanding business
3 Actively expand overseas operations
4 Expand group synergies on the strategic and operational fronts
Group Strategies
Our Well-Balanced Business Portfolio
Goals to be Achieved (targets for 2016,
140th anniversary)
Net sales
¥ 600
billion
(incl. liquor tax)
¥ 450
billion
(excl. liquor tax)
Operating income
to net sales
ROE
Operating income
9 %
(excl. liquor tax)
¥ 40
billion
Basic approach for enhancing competitiveness through
aggressive management based on long-term goals
Stable Earnings Base Growth Drivers
Food value
creation
Creating
comfortable
surroundings
(before goodwill amortization) (before goodwill amortization) (before goodwill amortization)
8 %
or higher
2014 53 %
9 %
27 %
5 % 5 % 1 %
(Plan)
2012 55
%7
%26
%5
%5
%2
%
¥ 492.5
billion
Target ¥ 533.0
billion
Our Business
Business Segments
Net Sales Breakdown
(¥ Billion)
As the Group’s mainstay business, it is expanding into such areas as wine, shochu and low- and non-alcoholic beverages focusing on core products such as Sapporo Draft Beer Black Label in the standard beer market, the Yebisu Beer brand in the premium beer market, and its leading Mugi to Hop brand in the new genres market.
Japanese
Alcoholic Beverages
The Group is expanding the Sapporo brand, especially in the beer business in North America, where growth remains steady, and in Southeast Asia and Oceania, where business operations are in full swing. The Group is also expanding its beverage business in North America where it recently entered the market.
International
The Food & Soft Drinks business started anew as POKKA SAPPORO FOOD & BEVERAGE LTD. and is rolling out diverse brands such as lemon-based products and soups in its food business, and Ribbon, POKKA Coffee, and Aromax in its Soft Drinks business. The Soft Drinks business is leveraging POKKA brand in Singapore and strengthening its business presence in neighboring countries.
Food &
Soft Drinks
Through Sapporo Lion Limited, with its more than a century of history as a restaurant industry pioneer, we launched Sapporo Lion Beer-Hall in Ginza and the YEBISU BAR chain, providing value by combining food with comfortable surroundings. In 2013, we began local market research to expand our beer halls internationally with Singapore as our base.
Restaurants
The Real Estate business mainly develops rental real estate, including Yebisu Garden Place, Sapporo Factory, and office buildings principally located in three areas where it has deep Group links: Ebisu, Ginza, and Sapporo, with the aim of raising the value of its existing properties.
Real Estate
■
Japanese Alcoholic Beverages¥269.9 ¥ 283.5
■
International¥36.1 ¥ 46.4
■
Food & Soft Drinks¥129.0 ¥ 145.5
■
Restaurants¥26.6 ¥ 28.2
■
Real Estate¥23.2 ¥ 22.4
■
Other¥7.6 ¥ 7.0
Note: From fiscal 2013, Sapporo Logistics Systems Co., Ltd., which had been categorized as a Japanese Alcoholic Beverages business, and POKKA Logistics Co., Ltd., which had been categorized as a Food & Soft Drinks business, have been shifted to “Other Business.” Also, POKKA FOOD (SINGAPORE) PTE. LTD., which had been in the Food & Soft Drinks business, has been categorized as a Restaurants business. Along with these changes, the
2016 Targets
2012 Results
¥ 379.8
billion
¥ 450.0
billion
Net sales (excluding liquor tax)
¥ 18.3
billion
¥ 40.0
billion
Operating income (before goodwill amortization)
Key Indicators
¥ 600.0
billion
Net sales (including liquor tax)
¥ 492.5
billion
2016 Targets
2012 Results
4.8 % 9.0 %
Operating income to net sales (excluding liquor tax; before goodwill amortization)
About
1.9 times
About
1.0 time
Debt-to-equity ratio
7.3 % 8.0 %
or higher
ROE (before goodwill amortization)
Millions of yen
Years ended December 31
2007 2008 2009 2010 2011
For the Year:
Net sales
Including tax ¥449,011 ¥414,558 ¥387,534 ¥389,245 ¥449,453
Excluding tax 309,794 284,412 264,604 269,874 336,838
Operating income 12,363 14,685 12,896 15,403 18,884
Operating income before goodwill amortization 13,232 15,553 13,923 16,576 21,993
EBITDA 37,759 37,158 36,470 39,080 46,477
Net income 5,509 7,640 4,535 10,773 3,165
Capital expenditures (cash basis) 19,884 27,342 21,910 19,801 13,423
Depreciation and amortization 24,527 21,605 22,547 22,504 24,482
Goodwill amortization 870 867 1,027 1,173 3,109
Cash flows from operating activities 30,691 22,292 12,454 27,431 22,313
Free cash flows 17,196 39,148 (19,773) 24,836 (28,579)
At Year End:
Net assets 125,189 116,862 118,591 126,645 124,775
Total assets 561,859 527,287 506,875 494,798 550,784
Financial liabilities 212,464 189,252 196,794 181,335 219,168
Other Indicators:
Overseas sales ratio 9.0% 8.8% 8.5% 9.4% 11.0%
Operating income to net sales
Excluding tax 4.0% 5.2% 4.9% 5.7% 5.6%
Excluding tax; before goodwill amortization 4.3% 5.5% 5.3% 6.1% 6.5%
Debt-to-equity ratio (times) 1.7 1.6 1.7 1.4 1.8
Equity ratio 22.3% 22.1% 23.4% 25.3% 22.4%
ROE 4.6% 6.3% 3.9% 8.9% 2.5%
ROE (before goodwill amortization) 5.3% 7.0% 4.7% 9.8% 5.1%
Notes: 1. Because we have changed to an accounting method that excludes a portion of the sales incentives (which had been accounted for under selling, general and administrative expenses) from net sales, the figures for fiscal 2011 and relevant key management indicators have been adjusted retroactively.
2. Yen amounts have been translated into U.S. dollar amounts at the rate of ¥86.58=U.S.$1.00, the exchange rate prevailing on December 31, 2012.
(¥ Million)
2012 2011 2010 2009
0 2008
100,000 200,000 300,000 400,000 500,000
414,558
387,534 389,245 449,453
492,491
2012 2011 2010 2009
0 2008
100,000 200,000 300,000 400,000 500,000 (¥ Million)
284,412
264,604 269,874 336,838
379,793
Net sales (including tax) Net sales (excluding tax)
Creating New Value at Sapporo
Financial Highlights
SAPPORO HOLDINGS LIMITED and consolidated subsidiaries
Thousands of U.S. dollars
2012 2013
(plan)2012
¥492,491
¥512,000
$5,688,273 379,793397,300
4,386,609 14,41515,300
166,493 18,29419,200
211,300 44,10043,600
509,3515,394
5,500
62,29653,870
21,000
622,199 25,80524,400
298,0513,879
3,900
44,80729,618
30,200
342,089 (29,868)6,200
(344,972)134,947
—
1,558,636597,636
—
6,902,706257,647
254,000
2,975,82114.1%
14.7%
3.8%
3.9%
4.8%
4.8%
1.9
1.8
22.1%
—
4.2%
4.1%
7.3%
7.1%
2012 2011 2010 2009 2008
Operating income to net sales (excluding tax) Operating income
(%)
0 5,000 10,000 15,000 25,000
20,000 (¥ Million)
0 2 4 6 10
8 15,553
13,923 16,576
21,993 18,294
2012 2011 2010 2009 2008
ROE Net income
(%)
0 3,000 6,000 9,000 12,000
0 3 6 9 12 (¥ Million)
7,640
4,535
10,773
3,165 5,394
Operating income and
Operating income to net sales (excluding tax) Net income and ROE
Changes in operating income
21,993
-1,782
-380
-2,628
+320
+844
+230
-302
18,294
2012
Other General Corporate
Real Estate Restaurants Food & Soft Drinks
International Japanese Alcoholic Beverages
2011
(¥ Million)
Changes in net sales
449,453
+6,301
+10,233
+24,114
+1,524
+749
+116
492,491
(¥ Million)
2012
Other Real Estate Restaurants Food & Soft Drinks
International Japanese Alcoholic Beverages
2011
Note: Figures are before goodwill amortization. Note: ROE is before goodwill amortization.
Note: Figures are before goodwill amortization.
From January 2013, the Sapporo Group underwent a transition with major changes
made to its Group structure including the start up of POKKA SAPPORO FOOD &
BEVERAGE LTD., a new company that integrates its Food & Soft Drinks business. With
four years remaining until 2016, the final year of our New Management Framework,
we have positioned the two years covering 2013 and 2014 as an important period
for establishing a foundation for achieving our target. With an eye on achieving our
targets ahead of schedule, we have started to further raise corporate value as the
new Sapporo Group.
To Our Stakeholders
President
Tsutomu Kamijo
Talks about
Strategy
In fiscal 2013, the Sapporo Group began
implementing the new Sapporo Group
Medium-term Management Plan 2013–
2014, which targets the achievement of
the Group’s New Management Framework
by 2016, the framework’s final fiscal year.
The Sapporo Group’s performance in
2012 and the vision and goals of the
new plan are explained below.
Business Climate in 2012
During 2012, the Japanese economy staged a modest recovery thanks to a rebound
in consumer spending in line with Great East Japan Earthquake recovery efforts.
Nevertheless, adverse conditions continued, including the yen remaining strong
until the end of the year, and the global economic slowdown, mainly in Europe.
The soft drinks industry saw sales gains for some new products and existing brands
as favorable weather conditions, including a hot summer and warm temperatures
lingering into early autumn, helped boost demand. However, the alcoholic beverages
and restaurant industries, which were directly affected by the earthquake disaster in
fiscal 2011, did not see demand rebound as much as expected, as consumer spending
was slow to recover. In the real estate industry, high vacancy rates in the Greater Tokyo
office leasing market caused by a recent increase in new office supply are gradually
improving. Rent levels, however, remained weak.
Performance in 2012
In 2012, the Sapporo Group posted consolidated net sales of ¥492.5 billion, up 9.6%
from 2011. The Japanese Alcoholic Beverages and Restaurants businesses both
achieved higher sales than in 2011, when they were directly affected by the earthquake
disaster. The International Business segment also achieved higher sales, aided by the
consolidation of Silver Springs Citrus, Inc. from April 2012. Sales in the Food & Soft
Drinks business were up sharply, thanks in part to the full-year’s contribution from the
POKKA Group, which was consolidated in April 2011.
Consolidated operating income totaled ¥14.4 billion, down 23.7% from 2011. The
Restaurants business achieved profit growth on increased sales, while Real Estate
business profits were higher thanks to the inclusion of revenues and earnings from
Yebisu Garden Place in the Group’s consolidated income statement from March,
following the acquisition of 15% of the trust beneficiary rights in Yebisu Garden Place
from their former joint holders. Gains in these segments, however, were outweighed
by lower profits or losses in other segments as the result of various profit-reducing
factors, including an aggressive year-on-year increase in marketing expenses by both
the Japanese Alcoholic Beverage business and the Food & Soft Drinks business, higher
goodwill amortization in the Food & Soft Drinks business, a first quarter operating loss
at the POKKA Group, and expenditures by the International Business segment to open
new markets in Vietnam.
Consolidated net income increased 70.4% to ¥5.4 billion, largely reflecting lower
extraordinary losses than in 2011, when such losses were inflated by the application of
accounting standards for asset retirement obligations and disaster-related losses.
Fiscal 2012 Overview
Aiming for a Dynamic Growth Stage
with Sapporo Group Management Plan 2013–2014
Management Plan Vision and Goals
We have positioned the two years covering 2013 and 2014 as an important period for
laying a foundation to achieve our goals. We will lay such a foundation for growth and
produce results with our new Group management framework with the aim of achieving
a new growth stage. The new plan sets the following numerical targets for fiscal 2014.
Our consolidated net sales target is ¥533.0 billion, or ¥416.0 billion excluding the liquor
tax. Moreover, we expect to achieve consolidated operating income of ¥17.8 billion
(¥21.6 billion before goodwill write-off) and ROE of 5.1%. We view these two years as a
period for laying a foundation for growth, including investments that will lead to major
growth in the future.
Position of Sapporo Group Management Plan 2013–2014
Dynamic growth
III. Creating new opportunities
for growth
I. Challenges toward growth
in all businesses
II. Carrying out growth measures
Building foundation and
generating results
140th anniversary
of Group’s Founding Achievement of the New Management Framework’s TargetsBuild foundation and generate results with the new group management structure
for dynamic growth
2013 2014 2015 2016
To Our Stakeholders
Basic Strategy for Dynamic Growth
The following three strategies form the basis of our plan. Under these strategies, we will
produce results through a variety of activities.
Our first strategy, “Challenges towards growth in all businesses,” calls on employees
in all our businesses to leverage the strengths of their respective business brands and
the Company’s unique management resources, such as its 100% Collaborative Contract
Farming System, the only such system in the world, while accepting new challenges to
enable us to stay ahead of the competition.
Our second strategy, “Carrying out growth measures,” will build a solid foundation
by making additional upfront investments to steadily reap the benefits of strategic
moves taken over a number of years. Further, we will take steps to ensure that the
integration of POKKA SAPPORO FOOD & BEVERAGE LTD. is effective and steadily
implement measures such as expanding development of the Vietnam market.
Our third strategy, “Creating new opportunities for growth,” involves the active
study of M&A and alliance activities, regardless of whether they are in Japan or abroad.
Note: Sapporo Holdings Ltd. and consolidated subsidiaries. Assumed exchange rates: 2012–2013: US$=¥85, CAN$=¥83
The 2014 targets above do not reflect the impact of tax increases, as there is uncertainty surrounding future direction of consumption tax.
2013–2014 Management Targets
2006 results 2012 results 2013 plan 2014 plan 2016 targets Net sales
(including liquor tax)
¥435.1 ¥492.5
¥512.0 ¥533.0¥600.0
(excluding liquor tax)
¥294.1 ¥379.8
¥397.3 ¥416.0¥450.0
Operating income
¥8.6 ¥14.4
¥15.3 ¥17.8¥40.0
(before goodwill amortization)
¥8.6 ¥18.3
¥19.2 ¥21.6Net income
¥2.3 ¥5.4
¥5.5 ¥7.0—
Operating income to net sales
(excluding liquor tax)
2.9% 3.8%
3.9% 4.3%(excluding liquor tax;
9.0%
before goodwill amortization)
2.9% 4.8%
4.8% 5.2%Debt-to-equity ratio (times)
2.1 1.9
1.8 1.7About 1.0
ROE
2.1% 4.2%
4.1% 5.1%8.0%
or higher
(before goodwill amortization)
2.1% 7.3%
7.1% 8.0%Consolidated targets
(¥ Billion)
Basic Approach to Strategic Investments
We will continue to make aggressive long-term strategic investments with the goal of
sustaining the growth of the Sapporo Group. During the five years from 2012 to 2016,
we plan to strategically invest between ¥150 billion and ¥200 billion, but basically our
plan is to make these investments within the limits of our operating cash flows. In fiscal
2013, our investment target is approximately ¥28.0 billion and expected projects at this
time include enhancement of the asset value of the Yebisu Garden Place complex and
planned investment in the redevelopment of the Seiwa Yebisu Building. We are also
planning to invest in facilities to further streamline the Japanese Alcoholic Beverages
and Food & Soft Drinks businesses and open new restaurants in Japan and abroad.
Groupwide Strategy
To achieve even greater growth, it is essential that we promote further Group
management efficiency. With the size of our Group expanding due to the integration
of the POKKA Group, now is our chance to achieve it. Therefore, we will consolidate
common operations within the Group in Sapporo Group Management (SGM) Ltd., a
functional support company, while strengthening our ability to operate at low cost.
We will actively work to strengthen the Group brand. We will make greater efforts across
the Group, especially in priority areas that leverage the Group’s strength, to increase the
popularity of the Sapporo Group among consumers. We will also continue to fortify Group
human resource development. We will concentrate on human resource development with
the goal of improving our ability to execute our growth strategy and respond to change, as
well as on developing human resources who will be in charge of international strategy.
Overall Group Strategy
We will implement Group-wide initiatives for increasing the number of Sapporo Group fans primarily in the areas where we can leverage the Group’s strengths.
Initiatives for
enhancing
Group brand
Further promotion of efficiency in Group Management 2)
As the size of the Group expands, we will further concentrate common operations on SGM, a functional support company.
1)
We will develop human resources so as to strengthen abilities to implement growth strategy and respond to changes.
Strengthening
development of Group
human resources
3)
Operations started in January 2013 Sapporo Group Management Ltd.
Functional company
Operating companies
Holding company/Group headquarters
Sapporo Holdings Ltd.
To Our Stakeholders
Sapporo Breweries Ltd. Sapporo International Inc.
POKKA SAPPORO FOOD & BEVERAGE LTD.
Sapporo Real Estate Co., Ltd. Sapporo Lion Limited
Businesses that Generate Stable Profits and
Businesses that Drive Growth
At the Sapporo Group, the Japanese Alcoholic Beverages and Real Estate businesses are
viewed as businesses that generate stable profits, while the International and Food &
Soft Drinks businesses are viewed as growth drivers. In this section, we will outline our
strategy for each business segment. For details on strategies for each business segment,
please see the Performance Review and Plan starting on page 20 of this report.
In the Japanese Alcoholic Beverages business, we will pursue two major strategies.
Focusing on the strategies of “Growth in the beer-taste market” and “Growth as a
comprehensive alcoholic beverage enterprise,” we will take steps to further raise
profitability and increase our corporate brand value, which is a reflection of Sapporo’s
market presence. In the Real Estate business, we will raise Sapporo’s brand value and
build stronger Group synergies while enhancing the asset value of our prime properties
including Yebisu Garden Place.
In the International Business, the Sapporo Group will further accelerate expansion
in the North American market leveraging the strengths of its premium brand with the
aim of increasing sales through business expansion in growth markets, particularly in
Asia. In the Food & Soft Drinks business, we seek to establish POKKA SAPPORO FOOD &
BEVERAGE LTD. as the third business pillar of the Sapporo Group and contribute to the
Group’s overall growth by increasing synergistic effects within the Group.
Outlook for Fiscal 2013
With the goal of increasing net sales, operating income, and net income on a
consolidated basis, fiscal 2013 has been positioned as a time to prepare for dynamic
growth.
In the Japanese Alcoholic Beverages business, 2013 is viewed as the year for
strengthening the Sapporo brand. The greatest emphasis will be placed on fortifying
its beer brands, and, in addition to its strategy specially designed to expand existing
brands, it will aggressively increase sales of shochu (Japanese distilled spirits) and wine
and western spirits. At the same time, it will restructure its non-alcoholic beer and
ready-to-drink (RTD) beverage lineups.
The International Business will work to gain wider brand recognition for the
SLEEMAN and Sapporo brands in the North American market while expanding sales
in Southeast Asia, especially in Vietnam. We also plan to expand soft drink sales in the
North American market by leveraging new Group member Silver Springs Citrus, Inc.,
which became a consolidated subsidiary in 2012.
In the Food & Soft Drinks business, we will strengthen and leverage existing brands
in POKKA SAPPORO FOOD & BEVERAGE LTD. while developing distinctive new products
to achieve steady growth.
The Restaurants business will expand sales by strengthening its existing brands
and opening new outlets, with a focus on the YEBISU BAR chain and the mid-size Ginza
Lion brasserie format. In addition, the segment aims to seize the opportunity afforded
by the inclusion of POKKA FOOD (SINGAPORE) PTE. LTD. to pursue an overseas growth
strategy centered on expansion of our chain of beer halls.
The Real Estate business will continue efforts to maintain and raise occupancy
rates while targeting appropriate rent levels. The business targets new growth by
enhancing the asset value of its core Yebisu Garden Place Property and through the
redevelopment of its Seiwa Yebisu Building.
As a result, in fiscal 2013, we expect consolidated net sales of ¥512.0 billion, an
increase of 4.0% over the previous fiscal year.
As for operating income, the Japanese Alcoholic Beverages business plans to
increase profits by boosting sales and continuing cost control measures. Although
the International Business segment expects increased profits in North America, we
expect segment operating income to remain basically unchanged in 2013 as a result
of investing to build markets and brand recognition in Vietnam. In the Food & Soft
Drinks business also, we plan to increase profits by boosting sales. Gains in both sales
and profits are expected in the Restaurant business, as it plans to continue efforts
to strengthen the profitability of its operations, while operating income is expected
to decline in 2013 in the Real Estate business as redevelopment of its Seiwa Yebisu
Building cuts into leasing revenues.
As a result, we forecast 2013 consolidated operating income of ¥15.3 billion (up
6.1% year on year).
Shareholder Returns
Providing fair returns to shareholders is a key management policy of the Sapporo
Group. Our basic policy is to pay stable dividends to the extent permitted by our
operating performance and financial condition. In line with this policy, we plan to pay
an annual dividend of ¥7 per share for 2012, the same dividend paid in 2011.
In 2013, we plan to maintain the annual dividend at ¥7 per share, as we steadily
carry out our management plan while also making strategic investments and
strengthening our financial foundation.
Tsutomu Kamijo
President, Representative Director and Group CEO
To Our Stakeholders
Maximizing
Value
Overseas Markets as Growth Driver
Raising the presence of the Sapporo brand in Asia and North America
and leading the Group to a dynamic growth stage.
Special Feature
In 2006, the Sapporo Group acquired SLEEMAN BREWERIES
LTD., the third largest beer producer in Canada and a
company with a strong presence in the premium-beer
market. In 2002, SLEEMAN BREWERIES began OEM
production of SAPPORO PREMIUM-brand beers for Sapporo
U.S.A., Inc., the Sapporo Group’s U.S. beer sales company.
With the acquisition, SLEEMAN BREWERIES became an
affiliate of the Sapporo Group, thus marking Sapporo’s full
entry into the Canadian beer market, raising the value of the
Sapporo brand in North America and allowing us to maximize
synergies with the Group’s existing management base.
SLEEMAN BREWERIES sales in 2007 were CAN$212.9
million, but thanks to strong sales efforts in the premium beer
market, where it is strong, sales grew to CAN$308.8 million
in 2012. Sales volume for beer in 2011 and 2012 was up 9%
and 5%, respectively, over the previous fiscal year, outpacing
Canada’s total demand decrease of 1% and increase of 2% for
those same years, marking the sixth straight year that growth
rate has surpassed total demand. To reach our production
capacity by increasing sales volume, we will expand available
production capacity for SLEEMAN BREWERIES by consigning
the production of SAPPORO PREMIUM-brand beers for
Sapporo U.S.A., Inc. to City Brewing Company, LLC beginning
from July 2013. At the same time, we will raise production
efficiency by selling off the SLEEMAN BREWERIES in
Dartmouth, which has the lowest production capacity among
its breweries, sometime in 2013.
With the goal of achieving sales volume in excess of
total demand growth including growing value brands,
Sapporo will continue to invest in marketing to maintain
and increase the brand value of its mainstay premium
brand beer.
In the United States, we have increased our sales
volume with the acquisition of SLEEMAN BREWERIES and
the establishment of both production and sales bases in
North America by Sapporo U.S.A., Inc.
With total U.S. beer demand flagging after Lehman
Brothers’ collapse, recent sales volume was up 10%
Success Model for Overseas Business:
Acquisition of SLEEMAN BREWERIES LTD.
Triggers Expansion into North American Market
Maximizing Value
Special Feature
SLEEMAN BREWERIES: Net Sales in local currency
2012 2011 2010 2009 2008 2007
(CAN$ millions)
150 200 250 300 350
1
Focus
People enjoying SLEEMAN beer
■ Began exporting
beer to the
United States
1964 1984 2002
■ Established
Sapporo
U.S.A., Inc.
■ SLEEMAN BREWERIES LTD.
of Canada began OEM
production of SAPPORO
PREMIUM-brand beers for
Sapporo U.S.A., Inc.
over fiscal 2011 and up 1% over fiscal 2012. Both figures
exceeded total imported beer demand growth in the U.S.
The Sapporo brand is now the number one beer from Asia
in the U.S. market. In addition, Sapporo is ranked 20th in
sales in the U.S., a market with several hundred imported
beers. In 2016, we plan to raise annual production volume
of SAPPORO PREMIUM-brand beers to five million cases
(1case=24 350ml cans) by consigning production to the
aforementioned City Brewing
Company, LLC.
We will not limit sales
to the Japanese-American
market segment in the U.S.,
but will aim for additional
growth through a stronger marketing strategy that focuses
on the general population and the Asian-American market.
To enhance the marketing of SAPPORO PREMIUM-brand
beers in South Korea, in January 2012, the Sapporo Group
acquired 15% of the shares of M’s Beverage Co., Ltd., a
wholly owned alcoholic beverage sales subsidiary of Maeil
Dairies Co., Ltd., a major South Korean dairy products
manufacturer. In 2010, Sapporo had already formed a
business alliance with Maeil Dairies, which established
M’s Beverage for the sales of SAPPORO PREMIUM-brand
beers, hired new employees, and marketed to convenience
stores, supermarkets, restaurants, and other outlets. Amid a
downtrend in total beer demand, the South Korean market
for imported beer is growing substantially, and Japanese-
brand beer, in particular, has been highly acclaimed as
premium beer. The Sapporo Group is raising its brand value
and strengthening its product sales system in South Korea
in order to fully develop its business there. In 2012, we
sold 420,000 cases of beer against a sales target of 380,000
cases (1case=24 355ml cans). For 2015, we have set a sales
target of 1,500,000 cases with the goal of becoming the
number one imported beer brand in South Korea.
The Sapporo Group has developed a strategy aimed
at making Japanese brand beer number one in Oceania,
too. In July 2011, it entered into a licensing agreement
with Australian beer maker Coopers Brewery Ltd. and
fully expanded its beer business there. Coopers Brewery
is Australia’s third largest beer maker and excels in
premium-brand beer. Australia’s domestic beer market is
on an upswing thanks to population growth and a robust
economy, and the premium beer category is growing
substantially as a percentage of total beer sales. Forming
a partnership with Coopers Brewery will bolster our sales
system in Australia’s premium beer market, making it
a pillar of International Business after North America
and Asia. We will also develop business with the goal of
establishing the Sapporo brand in the Asia-Pacific basin
by expanding the Sapporo brand from North America and
Asia into Oceania.
Aiming to be the Number One Imported Beer Brand
in South Korea and Japanese Beer Brand in Oceania.
2
Focus
Advertising of Sapporo U.S.A., Inc.
2007
■ Announced the Sapporo
Group’s New Management
Framework
Aimed to expand business
in overseas markets for
alcoholic beverages as well
as food and soft drinks
■ Acquired SLEEMAN
BREWERIES LTD. of
Canada
■ Established
Sapporo
International Inc.
2006
Sapporo Vietnam Limited, established with the goal of
expanding the beer business in Vietnam, completed
construction of the Long An Brewery in November 2011.
This is the first brewery built by a Japanese brewer in
Vietnam. The new brewery began producing SAPPORO
PREMIUM-brand beers, an internationally strategic product
and began marketing it, mainly in Ho Chi Minh City.
Full-scale market entry began in February 2012. From
April 2012, we initiated a full-fledged marketing campaign
locally using billboards, TV commercials, and other media,
and have taken steps to popularize beer drinking, such
as by offering draft beer from kegs. The growth in sales
volume in Vietnam is progressing satisfactorily. In the
commercial market, especially Ho Chi Minh City, we deliver
beer to around 1,500 restaurants, and in the distribution
market to approximately 2,000 shops, including
convenience stores and major supermarkets.
Outdoor advertising in Vietnam
Building a Stronger Alcoholic Beverages Business
in Southeast Asia with Long An Brewery as a Key Base
In the International Business, we will expand in the
Asia-Pacific basin, mainly in North America, Asia, and
Oceania under a Premium-brand beer strategy focusing
on SAPPORO PREMIUM-brand beers in the premium-price
range. With the completion of the Long An Brewery,
Sapporo Group has now established breweries in three
locations worldwide, adding Southeast Asia to Japan
and North America. By establishing our own breweries in
these regions, we will build a stronger marketing base and
vigorously expand business in North America, where the
Sapporo Group is strong, and in Asia.
In Southeast Asia, Vietnam is viewed as a bridgehead
for expanding sales of SAPPORO PREMIUM-brand beers.
The Sapporo Group plans to use its convenient location to
maximum advantage to make inroads into surrounding
countries in Asia and has already expanded its brand in
eight of the 10 ASEAN countries. After this expansion, we
aim ramp up production capacity at the Long An Brewery
Focus
From Full-Scale Entry into Vietnam
to Expansion into Neighboring Regions
■ Made POKKA CORPORATION a wholly
owned subsidiary
■ Concluded licensing agreement with
Australian beer maker Coopers Brewery Ltd.
■ Completed construction of Sapporo
Vietnam Limited Long An Brewery
3
Focus
■ Formed business alliance
with Maeil Dairies Co., Ltd.,
a major South Korean dairy
products manufacturer
■ Concluded capital and
business alliance with
POKKA CORPORATION
■ Decided to enter beer
production and sales
business in Vietnam
Maximizing Value
Special Feature
2011
2009 2010
Expanding
the Sapporo Brand
throughout the World
■ Commenced
operation of
POKKA SAPPORO
FOOD &
BEVERAGE LTD.
Green tea on sale in Singapore TONKICHI, Singapore
Expanding in Asia through Synergies
with POKKA CORPORATION (SINGAPORE) PTE. LTD.
increasing the Sapporo Group’s earning capacity. This will
be accomplished by creating synergies with the restaurant
management and operation know-how developed by
Sapporo Lion over many years and the strength of POKKA
FOOD (SINGAPORE) in local markets.
With Singapore as our starting point, we plan to
fortify our alcoholic beverage and soft drink businesses
in Southeast Asia. We will expand sales channels for
exported beer in the local household market in partnership
with POKKA with the goal of becoming the number one
Japanese beer brand.
In overseas Food & Soft Drinks, POKKA CORPORATION
(SINGAPORE) PTE. LTD., a subsidiary of POKKA SAPPORO
FOOD & BEVERAGE, is offering products to neighboring
countries from its base in Singapore. POKKA CORPORATION
established its Singapore subsidiary in 1977. Because
the POKKA brand is well recognized, boasting market
shares of 70% for green tea and 50% for tea in Singapore,
it will continue to aggressively expand in regions where
growth is promising while increasing its future production
capacity.
In January 2013, the Sapporo Group’s Sapporo Lion
Limited acquired all shares of POKKA FOOD (SINGAPORE)
PTE. LTD., a subsidiary of POKKA CORPORATION
(SINGAPORE), and took over the entire business. As a
business expansion strategy, Sapporo Lion, which has
researched overseas market entry, and POKKA, because it
is part of the Sapporo Group, have both investigated the
sharing of know-how and acquisition of business resources
for Sapporo Lion’s entry into overseas markets.
With the share acquisition, we expect to lay the
foundation for overseas expansion and contribute to
■ Acquired 15% of the shares of M’s
Beverage Co., Ltd., a subsidiary of
Maeil Dairies
■ Acquired majority stake in Silver
Springs Citrus, Inc., the largest
U.S. maker of private-brand
chilled drinks
4
Focus
to 150,000 kiloliters in 2019. The
Sapporo Group is increasing sales
by aggressively developing growth
markets including Southeast Asia. The
Group also seeks to develop new markets, strengthen its
International Business base, and further expand business.
Brewery
Brewery
2012 2013
Brewery
Performance Review and Plan
Japanese
Alcoholic Beverages
Looking at the Japanese beer market in 2012, total domestic demand for beer and beer-type beverages is estimated to have declined by 1% year on year. During the period under review, beer and happo-shu (low malt beer) sales volumes slightly decreased. At the same time, growth rates for new-genre beer products slowed, despite a continued upswing in demand compared with the previous year. Against this backdrop, the Sapporo Group reported an increase in net sales for the first time in eight years. This was largely attributable to the year-on-year increase in total beer, happo-shu, and new-genre beer product sales volumes as well as higher sales of non-alcoholic beverages, ready-to-drink (RTD) beverages, wines, western spirits, and shochu (Japanese distilled spirits). As a result, net sales in the Japanese Alcoholic Beverages business climbed by ¥6.3 billion, or 2.3% compared with the previous year, to ¥274.5 billion. From a profit perspective, however, operating income declined by ¥1.8 billion, or 19.2% year on year, to ¥7.5 billion owing mainly to aggressive spending on marketing.
Sales in the shochu business grew significantly surging 34.0% year on year. This was largely attributable to the favorable reception for two new blended shochus: Imo Shochu Kokuimo, a blended shochu introduced in March 2012, and Mugi Shochu Koimugi, a barley-based shochu launched in September 2012.
In the wine business, demand for our everyday imported and domestic wines grew. At the same time, sales of our premium domestic wine, Grande Polaire, were also firm. Based on these factors, wine business sales improved 5.4% year on year. Turning to our spirits business, Bacardi products contributed to sales growth. After launching a renewed version of Sapporo Premium Alcohol Free in February 2012, we unveiled the world’s first completely non-alcoholic black canned beer, Sapporo Premium Alcohol Free Black, in May 2012. These new products helped to boost total sales volumes by 7.3% year on year. In RTD beverages, our tie up with BACARDI JAPAN LIMITED led to the April 2012 launch of the jointly developed Bacardi Mojito, triggering a mojito boom. Earlier in March 2012, we released a renewed version of Sapporo Nectar Sour Peach Sparkling. Complementing this initiative, we continued to put forward limited-volume RTD beverage proposals with seasonal flavors as a part of efforts to bring new products to market that satisfy our customers’ demand for beverages that match a wide range of occasions. As a result, sales volumes increased substantially in 2012 compared with the previous year. In beer and beer-type beverages, we launched a renewed version of the new-genre beer Mugi to Hop in January 2012. This was followed in March 2012 by the release of Mugi to Hop Black. Both products were received enthusiastically by the market. In July 2012, we introduced Hokkaido Premium, made from Hokkaido malt and Furano hops. This addition enhanced our lineup of new-genre beer products, providing customers with a refreshingly flavored beverage in contrast to the more robust flavored Mugi to Hop. Accounting for the aforementioned and other factors, sales volumes of beer and beer-type beverages edged up by 0.9% compared with the previous period, surpassing overall demand. Buoyed by improved results, we successfully increased our market share.
Non-Alcoholic
Beer and RTD
Beverages
Shochu
Business
Beer
Business
Fiscal 2012
Overview
Wine and
Spirits Business
Net sales
2012 2011 2010 2009 2008
(¥ Million)
200,000 220,000 240,000 260,000 280,000
300,000 299,699
282,914 279,329
268,189 274,491
Operating income to net sales Operating income
(¥ Million) (%)
2012 2011 2010 2009
2008 0
1 2 3 4 5
0 2,000 4,000 6,000 8,000 10,000
7,709 7,483
9,290 9,305
7,522
Operating income and Operating income to net sales
Note: Figures are before goodwill amortization.
■SAPPORO BREWERIES LIMITED
■SAPPORO WINES LIMITED
■YEBISU WINEMART CO., LTD.
■TANOSHIMARU SHUZO CO., LTD.
■SAPPORO ENGINEERING LIMITED
■STARNET CO., LTD.
■NEW SANKO INC.
The Japanese Alcoholic Beverages business is the core business of the Sapporo Group. In this segment, we will pursue two major initiatives focusing on “growth in the beer-taste market” and “growth as a comprehensive alcoholic beverage enterprise.” At the same time, we will establish a market presence that befits the Sapporo Group while further enhance profitability as well as our corporate and brand values.
for the Japanese Alcoholic Beverages Business
Growth Strategy
Further growth in the beer-taste market
In the beer business, we will work diligently to bolster the image of our three core brands. In specific terms, this will entail channeling management resources toward Yebisu Beer, which maintains a robust position in the premium beer market, Sapporo Draft Beer Black Label, a standard beer which accounts for the Company’s largest sales volume, and Mugi to Hop, a leading new-genre beer product brand. In the non- alcoholic beer category, we will also focus on boosting our brand image. To this end, we have released new product versions under the Sapporo Premium Alcohol Free brand in February 2013. In a bid to revitalize the beer market, we will leverage our position as a company that creates a beer culture to hold the Japan Beer Certificate Examination. We will also host the
Hyaku-nin Beer Lab and Hokkaido Likers with the aim of promoting direct communication with customers via Facebook. Endeavoring to bring the dreams of our customers to fruition, we will strive to reinforce the dissemination of information by engaging in such activities as WakuwakuBrewery that enable customers to customize their beer.
Growth as a comprehensive alcoholic
beverage enterprise
The Sapporo Group is committed to growth as a comprehensive alcoholic beverage enterprise. With this in mind, we will continue to foster our activities in wines, western spirits, shochu, umeshu, and RTD beverages as successive pillars of profit behind our beer products.
Management Plan 2013–2014
(¥ Billion) Quantitative
targets results2012 targets2013 targets2014
Net sales
269.9 275.2 283.5
Operating income
7.5 9.0 9.0
Operating income before
goodwill amortization
7.5 9.0 —
* Sapporo Logistics Systems Co., Ltd. will be moved to Other from fiscal 2013 onward. The figures for fiscal 2012 are reflected in the table above.
Topic
In November 2012, sales of Seven Premium 100% Malt, the first beer to be marketed under the Seven Premium brand name, commenced at 7-Eleven stores handling alcoholic beverages as well as Seven & i group company stores. This product developed jointly with the major retail group, Seven & i Holdings Co., Ltd., utilizes raw materials procured through 100% Collaborative Contract Farming System, an initiative that is unique to the Sapporo Group. As the name suggests, this all malt beer provides the rich taste of barley. Employing a sub-zero temperature maturation process, Seven Premium 100% Malt also boasts a clean finish that lacks any unpleasant aftertaste.
Successful Launch of Seven Premium 100% Malt
Seven Premium 100% Malt 350ml/500ml
International
Performance Review and Plan
Net sales
2012 2011 2010 2009
0 2008
10,000 20,000 30,000 40,000 (¥ Million)
25,021
22,582 25,386 25,888 36,121
Operating income to net sales Operating income
1,768 1,720
1,607 1,433
1,053
2012 2011 2010 2009
0 2008
500 1,000 1,500 2,000
0 3 6 9 12
(¥ Million) (%)
Operating income and Operating income to net sales
Note: Figures are before goodwill amortization.
In North America, where the timing of a full-fledged economic recovery remains unclear, we estimate that total demand in the beer market increased only slightly in 2012. In contrast, the Asian beer market continues to expand steadily, supported by the region’s fast-growing economies. Turning to our International Business, we experienced an upswing in local currency denominated sales particularly in North America. In addition, we strengthened our foothold in the United States’ soft drinks market by acquiring a 51% equity stake in Silver Springs Citrus, Inc. (SSC) in January 2012. This new subsidiary’s results have been included in our consolidated statement of income since April 2012. Accounting for these factors, sales in this segment climbed ¥10.2 billion, or 39.5% compared with the previous year, to ¥36.1 billion. On the earnings front, however, we incurred an operating loss of ¥0.1 billion, a negative turnaround of ¥0.5 billion year on year. This was mainly attributed to expenditures undertaken to cultivate the Vietnamese market. Operating income before goodwill amortization declined by ¥0.4 billion, or 26.5%, to ¥1.1 billion.
In Vietnam, we commenced a full-fledged marketing offensive including TV commercials from April 2012 as a part of efforts to build recognition for the Sapporo brand. In South Korea, we acquired a 15% equity stake in M’s Beverage Co., Ltd., a group company of our local partner Maeil Dairies Co., Ltd., which boasts a top share in the local cheese, low-fat milk, and chilled coffee drinks market, in January 2012. Through this initiative, we strengthened our structure in South Korea allowing us to accelerate sales of Sapporo brand beers to local household and commercial markets while enhancing our brand value. In the Oceania region, we took steps to reinforce sales in Australia and New Zealand by entering into a brewing and sales licensing agreement with Coopers Brewery Ltd. in October 2011. Continuing to work in close collaboration with our local subsidiary, we are expanding sales channels in the local household market in Singapore. Building on these initiatives, we achieved a 68% year-on-year increase in beer sales volumes in Asia and other markets outside North America.
The Sapporo Group continued to engage in aggressive marketing activities that target the premium beer market, where it exhibits core strengths. Canadian subsidiary, SLEEMAN BREWERIES, achieved a 4% year-on-year increase in unit sales (excluding outsourced production of Sapporo brand products and sales of domestic brands), keeping its six-year growth streak intact, by boosting investments aimed at marketing premium brands. In the United States, Sapporo U.S.A., Inc posted a 1% year-on-year upswing in sales volumes of Sapporo brand beers. While maintaining our base in the Japanese-American market, this upswing reflects successful efforts to expand into the wider U.S. and Asian-American markets.
Asia and
Oceania
Market
North
American
Market
Fiscal 2012
Overview
■SAPPORO INTERNATIONAL INC.
■SAPPORO U.S.A., INC.
■SAPPORO CANADA INC.
■SLEEMAN BREWERIES LTD.
■SAPPORO ASIA PRIVATE LIMITED
■SAPPORO VIETNAM LIMITED
■SILVER SPRINGS CITRUS, INC.
Topic
Silver Springs Citrus, products The Sapporo Group acquired 51% of the total issued shares of SSC from the Toyota Tsusho
Group for a payment of US$24 million. This acquisition will trigger the Group’s full-fledged entry into the U.S. beverage market and complement its competitive advantage as an established top beer brand from Asia in the U.S. market. Harnessing their respective strengths, the Sapporo and Toyota Tsusho groups will work to expand the SSC beverage business in the U.S.
Acquisition of a 51% Equity Interest in
Silver Springs Citrus, Inc., the Biggest U.S. Manufacturer
of Private-Brand Chilled Beverages
Positioned as a growth driver, we will accelerate efforts to expand the International Business by capitalizing on our strengths in the premium beer category in North America. At the same time, we will boost sales by actively expanding business in such growing markets as Asia and keeping a keen eye on opportunities to tap into areas outside the alcohol business domain.
for the International Business
Growth Strategy
(¥ Billion) Quantitative
targets results2012 targets2013 targets2014
Net sales
36.1 43.3 46.4
Operating income*
(0.1) 0.0 1.1
Operating income before
goodwill amortization
1.1 1.2 —
* Because of expenditures to build the Vietnam market, fiscal 2012 and 2013 include operating losses of ¥1.7 billion and ¥1.8 billion, respectively.
Strengthen the Sapporo brand
in the Asia and Oceania market
[Vietnam]While continuing to engage in full-scale marketing to establish and enhance recognition of the Sapporo brand at an early stage, we will build on existing beachhead Ho Chi Minh marketing activities to expand into the northern regions of Vietnam including Hanoi. [South Korea / Oceania]
In the South Korea and Oceania markets, we will reinforce sales by directing efforts mainly through our business alliance with Maeil Dairies Co., Ltd. and licensed production through Coopers Brewery Limited, respectively.
Bolster marketing
in the North American market
[Canada]SLEEMAN BREWERIES will continue investments in marketing to maintain and improve the value of its core premium brands. In addition, energies will be channeled toward achieving sales volumes including growing value brands that exceed the growth in total demand.
[U.S.A.]
In the U.S., Sapporo U.S.A., Inc will redouble its efforts to develop business in the U.S. general and Asian-American markets. These efforts are aimed at achieving sales volumes that outstrip any increase in total demand.
Management Plan 2013–2014
Food & Soft Drinks
Performance Review and Plan
Net sales
2012 2011 2010 2009
0 2008
50,000 100,000 150,000 (¥ Million)
36,849 30,746 33,938
108,061 132,175
Operating income to net sales Operating income
(%)
2012 2011 2010 2009
0 2008
1,000 2,000 3,000 6,000 5,000 4,000
0 1 2 3 6
4 5 (¥ Million)
221 301
1,343 5,745
3,117
Operating income and Operating income to net sales
Note: Figures are before goodwill amortization.
Demand for soft drinks in Japan is estimated to have increased by around 3% compared with the previous period in 2012. In addition to new product launches and strong demand for existing brands, which drove sales in the first half of the year, this favorable result reflected the positive impact of weather conditions including a persistently hot summer on second half sales. In food-related business activities, we estimate that total demand for lemon-based products increased by 1% year on year while demand for instant soups declined by 3%. Against this backdrop, Sapporo Beverage placed particular emphasis on fostering and strengthening its core brands. At the same time, investments by the POKKA Group’s Domestic Food & Soft Drinks business were mainly directed toward bolstering brand power. As a result, the Sapporo Group’s Food & Soft Drinks business sales amounted to ¥132.2 billion in 2012, up by ¥24.1 billion, or 22.3% compared with the previous year. This strong performance was also aided by the full-year contribution from the POKKA Group. In contrast, this segment’s operating income decreased by ¥3.3 billion, or 90.1% year on year, to ¥0.4 billion owing largely to aggressive marketing expenditure, higher goodwill amortization, and an operating loss at the POKKA Group in the first quarter of 2012. Operating income before goodwill amortization declined by ¥2.6 billion, or 45.7%, to ¥3.1 billion.
In its domestic soft drinks business, the POKKA Group released a renewed version of its Kireto Lemon lineup while at the same time launching a new TV commercial. The Group also bolstered its POKKA Coffee lineup and developed several promotional canned drinks. In August 2012, steps were taken to introduce a new version of the Group’s Aromax canned coffee series. Through its domestic foods business, the POKKA Group undertook various promotional measures, which included increased use of cross-merchandising via TV commercials, the Internet, and in-store displays, focusing on POKKA Lemon 100. The Group also strengthened the lineups for its Jikkuri Kotokoto soup series and the Kongari Pan series of instant cup soups.
Turning to the Group’s domestic restaurants business, the Café de Crié coffee shop chain continued to face an increasingly competitive environment. The POKKA Group responded by updating the Café de Crié menu with new items on a regular basis, which helped to underpin robust results.
In the overseas beverage & foods business, concrete measures were undertaken to reduce the costs of goods sold and distribution. This was amid intensifying price competition in Singapore and declining export market sales. The POKKA Group’s overseas restaurants business experienced strong sales in Singapore owing mainly to revised menus that reflect customer preferences at individual store locations.
Looking at individual products, we undertook an advertising campaign in a tie-up with a children’s TV program to raise consumer awareness toward our Ribbon brand. For our Gabunomi series, we launched a marketing campaign in collaboration with a popular animation character to broaden sales channels and enhance market penetration. Turning to Gerolsteiner, naturally carbonated water from Germany, and Oishii Tansansui, unit sales exceeded levels recorded in the previous year. However, overall sales volumes at Sapporo Beverage declined by 7% year on year due to the major market correction after last year’s surge in unsweetened beverage demand in the aftermath of the earthquake and tsunami disasters.
