Beer moves: Sapporo to buy Sleeman
Japanese firm Sapporo Breweries has announced that it will buy Canadian premium brewer Sleeman Breweries. The deal will be for over $300 million (US), included assumption of debt. Sapporo has apparently beaten out bids from Molson, Labatt, and Dutch-based Grolsch.
Sleeman was founded in 1988 as a microbrewery, and has grown by acquiring other small breweries. t has about 7% market share in Canada, where it already brews Sapporo beer by license. It also brews under the brands Sleeman and Upper Canada, as well as Unibroue, Shaftesbury, and others. It also is the Canadian distributor for such brands as Grolsch, Pilsner Urquell, and Guinness.
It is the #3 brewer, though far behind industry leaders Molson (now part of the US's Coors) and Labatt (now part of Belgian Interbrew/InBev). Molson and Labatt each control around 40% of the Canadian beer market.
For Sapporo, the #3 Japanese beers company (after Asahi and Kirin) it's another move to assure growth despite a stagnant domestic market. According to a Wall Street Journal article ("Sapporo Unit To Buy Sleeman, Canadian Brewer", 8/13/06)
Sapporo's offer comes amid a slowdown in domestic Japanese beer sales. Changing tastes, healthier lifestyles and Japan's shrinking population are looming pressures on the country's domestic beer market. In response, Japan's big brewers are diversifying into food, expanding overseas and introducing soybean beer.
Sapporo plans to aggressively move into selling Sleemana and Unibroue beer more widely in the US market. The deal is typical -- a small entrepreneurial company finds the going getting rough as it fights against a multinational oligopoly and needs a protector with deep pockets, while the protector needs to expand globally or stagnate.
