Page 11 - Kirin Holdings Case Study

decisions. Running a business is imagination.” Yoshinori Isozaki
2018 (5)

“The Group had been operating in an increasingly volatile
business environment, in which a broad range of social

issues had been emerging around the globe that have

significant implications for its business operations. In order
for the Group to achieve sustainable growth, the Kirin

Group needs to take its CSV1 management to a new level,

thereby to create greater social and economic value and
foster a collaborative and engaged relationship with

society. Globally, strict regulations on sugar and alcohol

consumption are already in place. In addition, the pace

and scale of change in the digital field and other areas of
the world are changing at a speed and scale that cannot be

perceived by conventional wisdom.” Yoshinori Isozaki (1)

It was also generally recognized that beer markets in Japan

and other industrialized nations in North America, Europe,

and other regions were by 2019 becoming ever more
mature whilst Japan itself was facing declining fertility and

an aging population which would further reduce beer

consumption. Over the medium to long term it was

unrealistic for Kirin Group to hope for unit growth.

Aggressive price competition had also continued whilst the

Japanese Liquor Tax Law and related legislation of June

2017 established the Guidelines on Fair Liquor Trade,

which offered opportunities for the beer industry to move
decisively toward focusing on profitability.

Kirin Brewery was among the first to shift its orientation

away from price, putting even greater emphasis on brands