3D Investment Partners, a key investor in Sapporo Holdings Limited, issued an open letter sharply criticizing the company’s persistent capital mismanagement and acquisition failures in its alcoholic beverages operations.
The letter highlights that Sapporo’s repeated write-downs, most recently an impairment loss of JPY 13.9 billion (USD 101.5 million) on its Stone Brewing acquisition, originally purchased for approximately JPY 25.1 billion (USD 183 million), reflect a broader trend of poor capital allocation. Additional losses from ventures including Sleeman Breweries, Sapporo Vietnam, and Anchor Brewing have cumulatively reached about JPY 38.0 billion (USD 277 million), with JPY 11.9 billion (USD 87 million) attributed solely to Anchor’s shutdown (inside.beer, 11.7.2023) .
The investor’s communication also casts doubt on Sapporo’s strategy to divest its real estate portfolio, expected to generate proceeds equal to nearly 70 percent of the firm’s market capitalization, and to reinvest primarily in its core beverages business. The letter demands that the board publicly address critical questions regarding due diligence, acquisition oversight, and future capital allocation ahead of the upcoming Annual General Meeting in March 2025, ensuring that shareholders have the necessary insights for informed voting decisions.
Ultimately, the open letter calls for a rigorous review of Sapporo’s internal processes and a commitment to enhanced financial discipline, warning that without decisive reforms, further erosion of corporate value in the competitive beverage market is likely.
The allegations are not new to Sapporo. 3D Investment Partners has incrementally increased its stake in Sapporo in recent years. A year ago, Masaki Oga, president of Sapporo, acknowledged that the company needed to refocus on beer and enhance its corporate value (inside.beer, 20.2.2024)
In December 2024, Sapporo Holdings announced a significant leadership change as Hiroshi Tokimatsu was appointed as the next president. Currently serving as executive group managing officer, he will concurrently lead Sapporo Breweries, marking a historic move by overseeing both operations. Current president Masaki Oga will transition to the role of special adviser, with the changes taking effect after the shareholders' meeting in March 2025. This personnel shift aims to reinforce the company's core alcoholic beverage business, according to The Japan Times .
