Asahi Group Holdings plans to maintain profitability for the next fiscal year as it looks to raise prices in line with inflationary trends while keeping a tight lid on costs, Chief Executive Officer Atsushi Katsuki said.
"Given the foreseeable inflationary environment, we’ll cut costs and raise prices as conditions require,” Katsuki said in an interview. The Japanese brewer has already announced price increases for its Super Dry beer and other beverages for the first time in 14 years in October, when consumers will pay 6% to 10% more for beer, Yoichi whiskeys and other beverages. "By doing this, we are planning to post another increase in profits for the next fiscal year.”
Asahi, along with other Japanese retailers have been facing pressure to raise prices for the first time in decades. A weaker yen is pushing up the costs of imported goods, while higher global prices for energy and raw materials is making it more expensive to produce and transport goods. Even so, shoppers in Japan have become accustomed to flat prices, while wage growth has remained relatively stagnant.