More Japanese beer in North America

Move over China, you’re too competitive, Japan’s fourth largest brewer, Sapporo, will be expanding in the United States.

Competition in China is intensifying, and everyone seems to be having a hard time boosting profits. Sapporo is expanding in North America, where returns on investment will be greater than in China, Chief Executive Officer Takao Murakami said.

Kirin Holdings Co. and Suntory Holdings Ltd., Japan’s two biggest beverage makers, would be ??threatening, said Murakami, even as he predicted Sapporo will beat its 2009 profit estimate and boost sales by volume this year.

"The only way for Sapporo to grow is to go outside Japan", said Koichi Ogawa, chief portfolio manager at Daiwa SB Investments Ltd. in Tokyo

Sapporo wants to expand brewing capacity in North America, where it owns Sleeman Breweries, he said. Sleemanâ??s sales may rise 14 percent this year after a 10 percent increase in 2009, Murakami said.

The Japanese brewer will consider acquisitions, increasing outsourcing or investing "??several billions of yen"? in existing plants, he said.

Yum..Mmmmm! I’m getting thirsty just looking at it. Sapporo = sushi = Sapporo.

Source Bloomberg