Due to skyrocketing construction costs, Asahi Group Holdings has announced a three-year postponement of the launch of its new beverage factory in Tosu, Saga Prefecture, Japan, now scheduled for 2029.The brewery was initially set to commence operations in 2026 but faces a setback due to a significant increase in construction expenses and materials prices, expected to double from the initial estimate of approximately 40 billion yen (USD 263 million), Nikkei Asia reported.
Intended to produce a variety of beverages, including beer and soft drinks, the Tosu plant was anticipated to handle a substantial portion of shipments for Kyushu, the southwesternmost of Japan’s main islands.
As a temporary measure, Asahi will keep its Hakata brewery in Fukuoka on the northern shore of Japan’s Kyushu Island operational until the end of 2028, extending its original closure date of 2025. The Tosu facility, once operational, will prioritize energy efficiency and integrate carbon capture technology.
Despite the delay, Asahi assured that the impact on 2023 earnings would be minimal. In financial results released on Friday, the company reported a record-high revenue of JPY 2.02 trillion (USD 13bn) for the nine months ending in September, marking a 9.4% year-on-year increase. The core operating profit also rose by 12.9% to JPY 199.6 billion (USD 1.3bn), driven by strategic price adjustments.