Kirin Holdings, Japan’s second-largest brewer, is planning to expand in health care to reduce its reliance on beer as it foresees increasing regulation of the alcoholic beverages industry.
It’s one of the first major players to lay out its plans after the World Health Organization in May called for stricter rules on digital marketing that companies use to promote their products across borders and urged governments to set higher prices to discourage drinking. Kirin’s approach stands in contrast to bigger rivals like Anheuser-Busch InBev and Asahi Group Holdings, who are doubling down on alcohol and investing in higher-end businesses like craft beers.
"I feel that more regulations are to come, and future of the beer business will probably be very difficult,” said Takeshi Minakata, head of the health science business at Tokyo-based Kirin. "There is a certain risk to continue to rely on the alcohol industry forever.”