Asahi Sales Drop Worsens as Cyber Hack Disruption Lingers

Asahi Group Holdings Ltd.’s November beer and other alcohol sales in Japan fell more than the previous month, underscoring the challenges the company faces in recovering from a cyberattack that crippled production and distribution.

Asahi said on Wednesday monthly alcohol sales decline widened from nearly 10% from a year ago in October to over 20% in November in the country, as the company struggled to ship year-end gift products.

Sales of soft drinks and food items recovered from the previous month, the Japanese brewer said. Soft drinks fell around 25% in November from the year before, recovering from a roughly 40% decline in October. Food products dipped around 10%, better than a more than 20% decrease the previous month.

Asahi aims for its supply chain to be largely restored by February. The September ransomware hit shut down key internal systems managing the company’s order and shipments in Japan. Asahi has since been forced to process transactions manually, slowing operations and leaving room for local competitors to capture market share.

Kirin Holdings Co. said beer sales rose 1% in November from a year earlier, while Sapporo Holdings Ltd. said sales by volume dropped 12% for the period.

Asahi said in November that it expected its financial results to be delayed by more than 50 days after the end of the fiscal year due to the cyberattack, and that a “short-term impact” to earnings in Japan could not be avoided. On Wednesday the company said it plans to announce the figures “promptly” once systems are fully restored.

Read More: Asahi Pushes Back Earnings Release Following Cyberattack

Asahi also disclosed that up to 1.9 million records of private information may have been compromised in the hit, but that no ransom money was paid. The company said additional information leaked following the ransomware attack were on the dark web on Tuesday night, in response to queries from Bloomberg.

Shares of Asahi rose 0.2% Wednesday. The stock has increased 6.2% this year.

Top photo: Cans of Asahi Super Dry beer move on the production line of the Asahi Breweries Ibaraki Brewery, operated by Asahi Breweries Ltd., a unit of Asahi Group Holdings Ltd., in Moriya, Ibaraki Prefecture, Japan, on Monday, Apr. 25, 2023. Photographer: Toru Hanai/Bloomberg.