Carlsberg has secured a long-term licence to produce and distribute Sapporo Premium Beer in the UK as part of a wider strategic partnership with Japanese brewer Sapporo Breweries that also includes the creation of a major joint venture across Southeast Asia and Hong Kong.
Under the agreement, Sapporo will grant Carlsberg long-term rights to produce and distribute its flagship premium lager in the UK and Myanmar, with the two companies also planning to explore opportunities to introduce the brand into additional European and Asian markets.
The deal marks a new chapter for Sapporo Premium Beer in the UK, following the expiry of the three-year distribution agreement awarded to KBE Drinks (now Kingfisher Drinks) in 2023.
The UK arrangement forms part of a broader deal that will see Carlsberg and Sapporo establish a joint venture covering Malaysia, Singapore, Hong Kong, Laos, Vietnam and Cambodia. The venture builds on the companies' existing collaboration, under which Carlsberg has distributed Sapporo Premium Beer in Malaysia, Hong Kong and Singapore since 2024.
Carlsberg will own a 75 per cent stake in the joint venture and retain operational control, while Sapporo will hold the remaining 25 per cent. As part of the transaction, Carlsberg will receive a cash consideration of $643 million (£480m) from Sapporo. The Danish brewer said it intends to use the proceeds to repay debt and for general corporate purposes.
The joint venture will also receive perpetual exclusive rights to produce and distribute Sapporo Premium Beer across the Southeast Asian and Hong Kong markets covered by the agreement.
Carlsberg said the addition of Sapporo Premium Beer, with its premium positioning and Japanese heritage, complements its existing portfolio and strengthens its growth ambitions in the region.
Jacob Aarup-Andersen, chief executive of Carlsberg Group, said: "We're excited to expand our successful collaboration with Sapporo. The new joint venture and long-term strategic partnership add Sapporo's premium Japanese brand to Carlsberg's strong portfolio of local and international brands and route-to-market capabilities in Southeast Asia and Hong Kong, enabling us to accelerate our growth ambitions in these important markets.
"We look forward to working with our new partner as we expand our combined business together across the joint venture markets and beyond, and begin an exciting cooperation in the UK. The long-term strategic opportunities between the two companies are truly exciting."
Hiroshi Tokimatsu, chief executive of Sapporo Breweries, said the partnership marked "a significant milestone" in the company's international strategy.
"By combining the strong brand equity we have built with Sapporo Premium Beer and the Carlsberg Group's outstanding business platform across Asia and Europe, we aim to deliver even more premium and attractive experiences to customers around the world," he said.
The transaction remains subject to regulatory approvals and customary closing conditions.