Page 11 - Kirin Holdings Teaching Note

three-year free cash flow targets. These funds allowed the

company to restructure and more fully and effectively

implement its programme of CSV.

As the Japanese and world market for beer matured Isozaki

moved the company’s products closer to the customer

through customer-centric branding e.g. Ichiban Shibori. In

addition, Isozaki addressed international operations and

market entry options which further aided its bottom-line.

In November 2018 Kirin Holdings announced, a shift in its

core business strategy from beverages to “health and
illness-preventing” solutions. Again, the objective was to

take its new products international driving the health care

division revenue to about 100 billion yen ($880 million).

Structurally the company was building new businesses

bridging pharmaceuticals and Food & Beverages to be a

core part of the Kirin Group’s portfolio. The philosophy

underpinning this strategy was based on Creating Shared

Value and achieved through prioritizing profitable growth of

existing businesses, while accelerating the shift to CSV as

the core of Kirin’s management and the creation of

intangible value (brand, R&D, digitalisation, HR and

organisation).

As part of the CSV Kirin Group would begin to address

societal issues in areas of health and well-being, community

engagement, and the environment such as the use of
plastics. All led by management initiatives to drive CSV

forward. Achieving an employee engagement score of 70%
by 2018.