Kirin Holdings Company, Limited
2503・Prime Market・Foods
Alcoholic Beverages Business
The core business of the Kirin Group, covering domestic and international beer, RTD, and low-alcohol beverages
| Period | Current | Previous | Change |
|---|---|---|---|
| Segment revenue (external customers) | ¥248,143 million (Q1 FY2026) | ¥248,975 million (Q1 FY2025) | ↓ |
| Segment business profit | ¥30,288 million (Q1 FY2026) | ¥26,962 million (Q1 FY2025) | ↑ |
| Segment business profit growth rate | +12.3% (year-on-year) | － | ↑ |
| Kirin Brewery (incl. Taiwan Kirin, etc.) revenue | Equivalent of ¥154,000 million (Q1 FY2026, shown in billions in supplementary materials) | Equivalent of ¥163,400 million (Q1 FY2025, shown in billions in supplementary materials) | ↓ |
| Lion revenue | Equivalent of ¥53,100 million (Q1 FY2026, shown in billions in supplementary materials) | Equivalent of ¥45,700 million (Q1 FY2025, shown in billions in supplementary materials) | ↑ |
| AUD exchange rate | ¥109.41 (Q1 FY2026) | ¥94.36 (Q1 FY2025) | ↑ |
Business Details
This segment centers on Kirin Brewery Company, Limited (domestic beer-type beverages and low-alcohol drinks), LION PTY LTD (beer and low-alcohol beverages in Oceania), New Belgium Brewing Company, Inc. (North American craft beer), and Four Roses (bourbon whiskey). In Q1 FY2026, external customer revenue totaled ¥248,143 million, making it the largest segment at approximately 43% of overall group revenue. Domestic volume declines were offset by pricing strategy, improved brand mix, and cost management, while a stronger Australian dollar provided a tailwind, resulting in a 12.3% year-on-year increase in segment business profit.
Recent Overview
Despite continued domestic volume decline, a stronger Australian dollar and strong pharmaceuticals performance drove overall 12% growth in business profit
In Q1 FY2026, external customer revenue in the Alcoholic Beverages segment was ¥248,143 million (down 0.3% year-on-year), a slight decrease, while business profit rose sharply to ¥30,288 million (up 12.3% year-on-year). Domestic Kirin Brewery standalone revenue continued to decline, down 8.8% year-on-year amid ongoing volume decreases, while LION PTY LTD saw revenue grow significantly, up 16.3%, boosted by a stronger Australian dollar (from ¥94.36 in the prior year to ¥109.41 in the current period). The statement of financial position includes ¥96,351 million in assets held for sale, suggesting that an asset sale process, including Four Roses, is underway.
Key Products
Growth Drivers
- Improved profitability from price revisions and better brand mix (higher proportion of value-added products) in domestic beer-type beverages
- Substantial boost to yen-translated revenue at LION PTY LTD from a stronger Australian dollar (approximately 15.9% yen depreciation year-on-year)
- Capturing health-conscious demand in the RTD category, centered on the Hyoketsu® sugar-free series
- Creating new demand through activation of the non-alcohol market (e.g., Kirin Honkaku Jozo Non-Alcohol Lager Zero)
- Expanded rollout of the next-generation beer tap system 'TAPPY' stimulating commercial-use demand
- Improved profitability at LION PTY LTD's Australian business through structural reform, fixed cost reduction, and appropriate pricing strategy
Risks
- Structural decline in alcoholic beverage sales volume due to Japan's shrinking and aging population (Kirin Brewery standalone revenue continues to decline, down 8.8% year-on-year)
- Risk of declining alcohol consumption and tighter alcohol regulations amid rising health consciousness
- Increased costs to adapt to market structural changes stemming from the 2026 unification of beer-type liquor tax rates
- Contraction of the North American craft beer market and rising raw material costs (impact on the New Belgium business)
- Risk from fluctuations in the Australian dollar exchange rate (a tailwind in Q1 FY2026, but a shift toward AUD depreciation would worsen yen-translated earnings at overseas subsidiary LION PTY LTD)
- Shrinking of the alcoholic beverages portfolio and loss of earnings contribution following completion of asset sales (Four Roses, etc.) classified as held for sale
- Downward pressure on operating profit from increases in other operating expenses (including impairment losses)
Last updated: March 27, 2026