How Japan's biggest brewer aims to attract sober Gen Z

Asahi Group Holdings, Japan's largest brewer, is facing a shift in consumer behavior as the younger generation, known as Gen Z, is choosing to drink less alcohol. This change has led to a decline in alcohol consumption, impacting not only Japan's tax revenues but also posing a new challenge for businesses in the alcohol industry. Atsushi Katsuki, the CEO of Asahi Group Holdings, has acknowledged this trend, noting that younger people are increasingly opting to drink less alcohol. However, he sees this shift as both a risk and an opportunity for the company. Asahi's unique position lies in its capability to produce non-alcoholic beverages or soft drinks, giving them a competitive advantage. They have set a goal to double the share of beverages with zero or low alcohol to 20% of their overall beverage sales by 2030. This shift in strategy is driven by the declining alcohol sales in Japan due to an aging population and falling birth rates. Asahi's main growth opportunities now lie in expanding overseas, with more than half of its sales being generated outside Japan. The company is eyeing the US market as a major opportunity for its alcohol-free and low-alcohol offerings, similar to their success in Japan.