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Asahi Breweries GroupCSR REPORT
Corporate Social Responsibility Report

2007

Contents
Executive Message
Corporate Philosophy, Guidelines for Corporate Activity,
Supporting the United Nations Global Compact
Outline of the Asahi Breweries GroupInterview with the President

Priority Initiatives of the
Asahi Breweries GroupPursuit of Quality
Product Development
Procurement of Raw Materials
Manufacturing
Logistics
Distribution and Sales
Labeling and Advertising
For the Next

Activities Promoting Moderate andResponsible Drinking
Philosophy and System
Elimination of Drunk Driving
Prevention of Underage Drinking
Prevention of Drinking During Pregnancy
and Binge Drinking
For the Next

Environmental Conservation Activities

Approach to CSR Reporting
3
4
5
7

11
11
13
14
15
17
18
19
20

25
26

Reduction of the Environmental Burden through R&D
Reduction of the Environmental Burdenin Sales Activities

34

Reduction of the Environmental Burdenin the Restaurant Business

34

Future Efforts
Reduction of Greenhouse Gas Emissions
Water Resource Conservation
Waste Reduction
Reduction of the Environmental Burden in Logistics

Reducing, Reusing and Recycling (3R)
Containers and Packaging
Environmental Communication
Forest Conservation
For the Next

39
41
43
45
49

Corporate GovernanceCompliance

51
54
57
58

Introduction to Our Web Site

1 CSR Report 2007

We report on the formulation of the Asahi
Breweries Group CSR Policy and ouraction policies for fiscal 2007.
In view of the expansion of our Group management, weformulated our CSR Policy and action policies toencompass the entire supply chain as well as global
business development.

We provide a detailed report on key
issues in response to the interests andconcerns of society.
We selected issues that are considered particularly
important based on our past relationship withstakeholders and sought to present an overall picture of
our activities.

Points of the Report 3

We introduce some of our everyday
activities based on our daily interactions
and relationship with stakeholders.
We report on requests from stakeholders and actions
taken by employees in response.

35
37
37
38

For Consumers
For Business Partners
For Shareholders and Investors
For Employees
For Local Communities

Third-Party Opinions

Points of the Report 1

Points of the Report 2
21
23
23
24

27
29
30
31
32
32
33
34

Targets and Results

We aim to report issues in theorder of their material impact.

Points of the Report 4

We report on actions taken in response to
the Financial Instruments and Exchange
Law (Internal Control over Financial
Reporting) and the Company Law.
We are engaged in building a Group-wide corporate
governance system for compliance and comprehensive
risk management.

Editorial Policy
In order to increase public understanding of the Asahi BreweriesGroup’s CSR (Corporate Social Responsibility) activities andfacilitate easy access to information, we have been making useof two media channels: a printed report (this pamphlet) and our
Web site.

The Printed Report (this pamphlet)
This report focuses on priority initiatives that have a major material
impact on the Asahi Breweries Group—the pursuit of quality,
activities promoting moderate and responsible drinking, andenvironmental conservation activities. Other subjects are divided
into categories according to the interests of various stakeholders,such as consumers, business partners, shareholders andinvestors, employees and local communities, and we report onefforts in which new progress was seen in fiscal year 2006, as
well as issues that have attracted significant public attention.

The Web Site: Site for CSR Activities/Social andEnvironmental Activities
This portal site reports on the CSR activities of the Asahi BreweriesGroup, including the contents of this printed report along withdetailed performance data. In addition to annual reports, the site
provides information and guidance on the latest activities as wellas environmental and cultural seminars and art events.

Scope of the Printed Report

The Web site discloses the latest andmost complete information (in Japanese)

http://www.asahibeer.
co.jp/csr/

Making it easy to find information andensuring that information is complete
To help readers quickly
find information theyneed, we prepared a
subject index to improveinformation retrieval.
Simply select the data
you wish to view from
“Policy, regulation,
standards,” “Structure,mechanism, systems” and “Performance data.” Links arealso provided to related sites, including investor
information and purchasing.

Reporting Scope
In general, the scope of this report covers the activities of Asahi
Breweries, Ltd., although some reported activities involve theentire Group or other Group companies.

Report Content
Social and environmental aspects of business activities arereported, including policies, plans, objectives, efforts andprogress.

Reporting Period
This report primarily covers fiscal year 2006 (January 1 to
December 31, 2006) as well as the history and activities as of the
publication date along with future projections and plans.

Reference Guidelines
This report uses the GRI* Sustainability Reporting Guidelines (2ndand 3rd editions) and the Japanese Ministry of the Environment’s
Environmental Reporting Guidelines (2003 edition) as references.
A table comparing the content of this report and these two
guidelines is on the Web site at:WEB

http://www.asahibeer.co.jp/csr/guideline/
index.html (in Japanese)* GRI: Global Reporting Initiative. Founded in 1997, the organization developed and has beenworking to disseminate sustainability reporting guidelines that are applicable worldwide.

Publication Date
Latest publication: June 2007
Previous publication: June 2006
Next scheduled publication: June 2008
Disclaimer
In addition to objective information on the past and present status of Asahi
Breweries, Ltd. and its Group companies, this report also contains plans,
perspectives and forecasts based on the corporate philosophy and management
strategies as of the date of publication, and therefore the actual status andoutcome of future business activities may differ from these forecasts as a result ofchanges in the social, economic or business environment.

Latest information uploaded regularly
To ensure timely
information disclosure,
we periodically release
the latest activity reportsof the Asahi BreweriesGroup in addition to ourreports issued annually.
Updates are announced
on the “What’s New”
section on the home
page of the site andother pages.

Designed for improved accessibility
The Web site isdesigned to be easy foranyone—including theelderly and the physicallychallenged—to view anduse. For example,
explanations on skip linknavigation, current
location information andso on have been incorporated for those who use talking
browsers. Furthermore, with a few exceptions, we tried tomake graphs and graphics as easy to view as possible.

CSR Report 2007

2

Executive Message

Kouichi Ikeda

Hitoshi Ogita

Chairman of the Board and CEO,Asahi Breweries, Ltd.

President and COO,
Asahi Breweries, Ltd.

Becoming an Enterprise Group that is
Sustainable and Accepted by Society
The daily activities of the Asahi Breweries Group are guided by our vision of “becoming a leading
company with abundant growth potential centered on the Asia region, by consistently offering
customers lifelong enjoyment and excitement in our business domains of food and health.”
We believe that CSR lies at the heart of our corporate activities and is essential to our continued
acceptance by society as well as to enhance corporate value.
In pursuing CSR activities, we formulated the Asahi Breweries Group CSR Policy in February 2007
(See p. 8). The Asahi Breweries Group understands that all stakeholders are, in essence, customers
who watch, support and guide our corporate activities. To respond to the expectations of ourcustomers, it is essential that we maintain vigilance across the entire supply chain and global
business development and that we closely collaborate with our business partners. This mindset isreflected in our CSR Policy.
The basis for responding to the requests of our stakeholders and adequately fulfilling our various
social responsibilities lies in the practical actions taken by each individual employee to satisfy thevarious people involved in his or her operations through dynamic interaction. By putting our CSR
Policy into action, we hope to fulfill our social responsibility and steadily enhance our corporate value.
To further promote these CSR activities, we must communicate our thinking and our actions inways that are readily understood by each stakeholder. This is the guiding principle behind the
preparation of the Asahi Breweries Group CSR Report 2007, which summarizes our efforts during
the past year.
We believe one major step for the Asahi Breweries Group’s CSR activities is to involve as many
stakeholders as possible in reading this report and providing opinions and feedback that we canincorporate into future activities.

3 CSR Report 2007

Corporate Philosophy
The Asahi Breweries Group aims to satisfy customers with the highest
levels of quality and integrity, while contributing to the promotion ofhealthy living and the enrichment of society worldwide.

Guidelines for Corporate Activity
Customer satisfaction• Provide high-quality and abundantly original products and services with customer
satisfaction as the cornerstone to all corporate activities.
• Propose new value to meet our customers’ expectations by revolutionizing our
thinking and behavior.
Safety and environmental responsibility• Bear full environmental responsibility and ensure the safety of all our corporate
activities, ever aspiring to preserve our beautiful earth and be gentle to its people.
• Promote resource renewal and energy conservation through recycling and waste
reduction.
Fair, open corporate ethics• Win customers’ trust through corporate behavior that is based on respect for soundand fair ethics.
• Value the importance of communication with society and actively facilitate mutualcomprehension via the disclosure of information.
World-class corporate activities• Have a global vision and strive to follow international standards for corporate behavior.
• Take on global business opportunities on the world stage.
A corporate culture rich in ideas and vitality• Create a corporate climate where the rich ideas and ambitious spirit of each employee
can be leveraged.
• Create a corporate climate that abounds in activities where individuals can think andact for themselves.
Original and responsive corporate action• Stay ahead of change and always strive to be forward-minded and swift in corporate
action.
• Aim to share excitement with society through inventive concepts and individual
behavior.
Independent and integrated management• Aim for corporate management where each company thrives from its own
independence.
• Aim for group management that leverages our combined strengths.
Continued, high-quality growth• Aim for efficient use of managerial resources and productive management.
• Meet everyone’s expectations, from customers and shareholders to employees,
through sustained and high-quality growth.

Supporting the United Nations Global Compact
Asahi Breweries announced its participation in June 2002. The Global Compact (GC) was proposed on January 31,
1999, by Kofi Annan, the former Secretary-General of the United Nations, at an international economic forum. The GC
calls for participating companies to embrace and enact within their sphere of influence a total of 10 principles in thefollowing four areas: human rights, labor standards, the environment and anticorruption. The goal of the GC is to actively effect worldwide change byincorporating and acting on these principles in every aspect of corporate
operations.
As of May 16, 2007, 4,799 companies, international labor organizations andcitizens’ organizations worldwide were taking part in this effort.

CSR Report 2007

4

Outline of the Asahi Breweries GroupThe Asahi Breweries Group aims to satisfy customers with thehighest levels of quality and integrity, while contributing to thepromotion of healthy living and the enrichment of society worldwide.

Group Long-Term Vision

Become a leading company with abundant growth potential centeredon the Asia region by consistently offering customers lifelong
enjoyment and excitement in our business domains of food and healthSoft Drinks Business

Overseas Business

Production and sales ofcanned coffee, teas andother soft drinks.

Production and sales ofbeer and/or soft drinks inNorth America, Europe,
China, Southeast Asiaand Oceania.

Food andPharmaceuticalBusiness
Production and sales ofhealth-related products,
yeast extract, functional
foods and freeze-dried
items.

Alcoholic
Beverages BusinessRestaurant Business

Production and sales of beer,
happoshu (low-malt beer), shochu,
zasshu (no-malt beer),
low-alcohol beverages,
whisky and spirits,
and wine.

Management ofrestaurants, primarily
located in the Tokyo
area and the Kinki
region of westernJapan.

Raw Materials
Business
Production and sales ofvarious kinds of malt
including raw materials
for beer, yeast material,
raw materials for breadand barley tea.

Service Business

Logistics Business

Provision of instruction on
handling draft beer, support
for sales promotions andbrewery tours.

Transportation of products
and provision of otherlogistics services for the
Asahi Breweries Group.

Consolidated

Net Sales

Corporate Outline
Name of the Reporting Organization:
Asahi Breweries, Ltd.
Head Office Address:
3-7-1 Kyobashi, Chuo-ku, Tokyo 104-8323(Address of incorporation)
1-23-1 Azumabashi, Sumida-ku,
Tokyo 130-8602(Business address)
Date Founded:
September 1, 1949
Representatives:
Kouichi Ikeda, Chairman of the Board and CEO
Hitoshi Ogita, President and COO

5 CSR Report 2007

Non-consolidated(Fiscal year ended December 31)

Paid-in Capital:
182,531 million yen(as of December 31, 2006)
Total Assets:
1,014,878 million yen(as of December 31, 2006)
Subsidiaries/Affiliates:
53 consolidated subsidiaries
1 non-consolidated subsidiary underequity method
25 affiliated companies under equity method(as of December 31, 2006)(¥ billion)

1,500

1,444.2 1,430.0 1,446.4
1,375.3 1,400.3

1,093.8
1,200

1,107.0 1,116.4

1,054.2 1,031.1

900

600

300

0

2002

2003

2004

2005

2006

Topics

Total Alcoholic Beverage Provider
Alliance with Kagome

Asahi Breweries enjoys a well-established position in themarket for beer-type beverages, centered on our beerbrand Asahi Super Dry, which celebrates its 20th
anniversary in 2007, along with leading brands in thehapposhu and new genre markets.
Leveraging our competitive edge in the beer-type
beverages market, we engage in a total alcoholic
beverage business that also encompasses various
established brands in the categories of shochu, lowalcohol beverages, whisky and wine.
To fulfill our goal of “Satisfying Customers with Great
Tastes”—the standard value that serves as the basis for
all innovation and action at Asahi Breweries—we willcontinue to present customers with wide-ranging
alcoholic beverage products that satisfy diversified needs.

In February 2007, Asahi Breweries and Kagome Co., Ltd.
signed a business and capital alliance agreement to further
reinforce our cooperative business relationship.
The latest agreement is intended to enhance mutual
corporate value by forging a cooperative relationship thatleverages our respective competencies throughout theentire scope of our business activities, encompassing
R&D, procurement, production and sales, for joint researchand development, as well as expanding our product lineupand collaborating in overseas businesses.

TopicsHybrid Production at Ibaraki Brewery

The Asahi Breweries Group is promoting the optimization of
its entire supply chain, including production and logistics.
We began work on turning Asahi Breweries’ Ibaraki
Brewery into a hybrid plant that produces low-alcohol
beverages and soft drinks in addition to beer. As a result, amajor portion of low-alcohol beverage production currently
being undertaken at Nikka Whisky Distilling Co., Ltd.’s
Kashiwa Plant and production of soft drinks at Asahi Soft
Drinks Co., Ltd.’s Kashiwa Plant will be consolidated at the
Ibaraki Plant by 2009.

Corporate Group that Contributes
to Food and Health
Building on the strengths of the alcoholic beverages
business operated by Asahi Breweries, Asahi Soft Drinks
Co., Ltd. and Asahi Food & Healthcare Co., Ltd. arerespectively developing the soft drinks and food andpharmaceutical businesses.
We have been endeavoring to steadily bolster our
research and development structure and expand our
product lineup by adding new companies to the Group,
such as chilled beverage maker LB Ltd. (two companies)
and health food company Sunwell Co., Ltd. in 2005, andJapan’s largest baby food maker, Wakodo Co., Ltd.,in 2006.

Net Income

TopicsExpansion of Beer Business in China

The Asahi Breweries Group has invested in four beercompanies in China, where market growth continues for theworld’s largest beer-consuming nation, and is striving toenhance the growth and profitability of these local
companies.
In June 2007, construction was completed andoperations were launched at the new plant for Hangzhou
Xihu Beer Asahi Co., Ltd.

Total Assets(Fiscal year ended December 31)(¥ billion)

Number of Employees(¥ billion)

50

44.8
39.9
38.9
35.5

40

28.2

30

30.6

1,500

16,0001,294.7
1,244.4 1,250.8 1,218.2 1,288.5
1,127.6
1,200
1,077.8 1,038.3
981.2 1,014.9

12,00015,070 14,654

15,74914,87815,280

900
8,000

23.2
20

(As of December 31 of each year)(As of December 31 of each year)600

14.8 16.4
10.6

3,995

3,779

4,000

3,700

3,607

3,672

300

10

0

0

0

2002

2003

2004

2005

2006

2002

2003

2004

2005

2006

2002

2003

2004

2005

2006

CSR Report 2007

6

Interview with the President

Asahi Breweries Group fulfills its social responsibility through“CS (Customer Satisfaction) + R (Relations).”

Q

What is the basic idea behind Asahi
Breweries Group’s CSR?

The foundation of our corporate activities, as stated in the Group’s
corporate philosophy, is “Satisfying customers with the highest
levels of quality and integrity.”
In our CSR activities, we recognize that every stakeholder is acustomer who spurs the performance of the Asahi BreweriesGroup. In this sense, the term “customer” not only refers to theconsumers of our products, but also includes shareholders andinvestors, suppliers, employees and local communities as well.
Every Group employee is expected to work in their respective

Hitoshi Ogita

positions to satisfy these customers and to incorporate customer

President and COO

opinions and feedback into future actions. Through this cycle, eachof us will fulfill our responsibility to our various stakeholders andbuild up strong and trusting relationships. This is the essence of
CSR activities for the Asahi Breweries Group.
In order to firmly instill this concept, we intend to accomplish our
CSR with “CS + R,” that is, Customer Satisfaction throughRelations.
To more effectively respond to customer expectations in the
future, it is essential that we maintain the perspective of the entire
supply chain and global business development and collaborate
with our business partners. Based on this idea, we formulated the
new Asahi Breweries Group CSR Policy (see diagram at right).

Q

How will you implement yourCSR Policy?

We will put our Asahi Breweries Group CSR Policy into practicebased on our relations with stakeholders.
We routinely emphasize interchange or dialogue and undertake
public relations activities that proactively communicate information
in a way that is easy to understand. At the same time, we are also
engaged in public listening activities to respectfully heed the voicesof customers and incorporate their feedback into our daily activities.

7 CSR Report 2007

Asahi Breweries Group CSR Policy
The Asahi Breweries Group seeks to bring about a sustainable society, and as we pursue our primary business domainsof food and health, we will respond to customer expectations by carrying out our social responsibility through businessactivities that take the environment and society into consideration. We will pursue this effort from the perspective of theentire supply chain and global business development by seeking collaborative actions with our business partners.

Sustainable Future Society

Business
Partners

Consumers

Supply Chain

Shareholders
andInvestors

Asahi
Breweries Group

GlobalEmployees

Food and Health

Local
Communities

GlobalEnvironment

Asahi Breweries Group “CS + R”

Enhanced Customer Satisfaction
Consumers

Proposal andInformation
Disclosure to
Customers

Business
Partners

Customers
Supporting
the Asahi Breweries Group’s
Shareholders
Corporate Activities
andInvestors
Employees

Local
Communities

GlobalEnvironment

Becoming an Enterprise that Fulfills
Its Social Responsibilities Based on“CS (Customer Satisfaction) + R (Relations)”
Enhanced Corporate Value

Customer Feedback
and Opinions

CSR Report 20078

Interview with the President

Q

Could you provide a few concrete
examples of your relations withstakeholders?

I always tell employees to maintain the sensitivity of their“antennas” to quickly sense changes in customers and markets sothis information can be incorporated into their work.
The Asahi Breweries Group itself manages or directly implements
various efforts to interact closely with stakeholders, including theCustomer Relations Office that listens to the voice of ourcustomers; the General Shareholders’ Meeting, during which wereport management issues to our shareholders and seek their
input; and the Corporate Culture Survey.
In 2006, we invited seven outside individuals as representatives
to a Stakeholders’ Meeting. I myself participated in this meeting
and received valuable opinions and advice.
We intend to reflect the voice of our stakeholders in various
business activities, including new product development andpersonnel measures.

Q

What are your policies for 2007?

The Six Priority Initiatives for our CSR activities—Pursuit of Quality,
Compliance with Laws and Ethical Standards, Environmental
Conservation, Appropriate Information Disclosure, Living inHarmony with Local Communities, and Encouraging Moderate andResponsible Drinking—will remain important in 2007.
In particular, we must systematically address the worldwide issue
of global warming, in light of the fact that the start of the First
Commitment Period (2008–2012) of the Kyoto Protocol is upon us.
We will make a Group-wide effort by setting new concrete
reduction targets for 2010.
With respect to Encouraging Moderate and Responsible
Drinking, drunk driving has become a serious social issue over the

9 CSR Report 2007

past year and its importance has grown among the various
concerns related to inappropriate drinking behavior. We plan tostrengthen our educational activities on this issue both inside andoutside the company, in conjunction with other initiatives such as
the prevention of underage drinking and drinking during pregnancy.
In addition, as stated in our new Asahi Breweries Group CSR
Policy, I believe we must pursue our CSR activities with a renewed
awareness of the perspective of the supply chain and global
development to realize a sustainable future society. And to do so,
it is essential that we collaborate with business partners who
support us in our business activities both in Japan and abroad.
I hope to deepen our dialogue, share the issues and work together
for a solution.
In promoting these activities, I will utilize the CSR Promotion
Sub-committee set up in October 2006 at the Head Office toaccelerate decision making, share information and policies within
the Group through the Asahi Breweries Group CSR Committee,
and undertake concrete action.

Q

Finally, what is your message to
stakeholders?

Until now, the Asahi Breweries Group has undertaken CSR
activities based on the “CS + R” concept with the recognition that
CSR activity is synonymous with corporate activity. We willcontinue to uphold this basic principle going forward, andfurthermore, each employee will take the initiative to act, as theentire Group strives to pursue CSR activities based on our new
CSR Policy.
In this report, we have introduced examples of our efforts toestablish corporate management that satisfies all stakeholders
through interchange or dialogue between employees andstakeholders in our daily operations. We appreciate you taking thetime to read this report and give us your frank feedback.

CSR Report 200710

Priority Initiatives of the Asahi Breweries GroupPursuit of Quality

We are carrying out uncompromising quality
control throughout the supply chain.
Providing safe, high-quality products that customers can use with confidence is thecornerstone and essential social responsibility for any food manufacturer.
To fulfill this responsibility, Asahi Breweries is carrying out uncompromising quality
control measures throughout every process, starting from product development, material
procurement, manufacturing, logistics, distribution and sales, and continuing on to labelingand advertisements, in accordance with our own quality policy as well as compliance withlaws and regulations.

Product Development

We incorporate informationfrom customers into productdevelopment and ensurethat developed products
meet the strictest standards. P13• We incorporate the opinions of ourcustomers into product development.
• We employ a variety of inspection
methods to confirm the safety andquality of products.
• We conduct multidimensional processes
for considering and verifying the safetyand durability of packages as well.
• The New Product Development Process
Verification Meeting conducts the final
check and determines the risk to quality.

Product
Development

Procurement of
Raw Materials

Procurement of Raw Materials

We are working to reinforce
quality audits and traceability
to maintain the stableprocurement of safe,
high-quality raw materials. P14• Quality audits are regularly conducted toreview the quality control systems of our
suppliers.
• We hold QA Meetings to discuss quality
maintenance and enhancement measures
for raw materials.
• Inspection items for quality and stability aredefined for each material.

11 CSR Report 2007

WEB

Visit our Web site at: http://www.asahibeer.co.jp/csr/ (in Japanese)• We guarantee consistent quality for our
products through the Taikoban Guarantee
System.
• We established our Quality Control Center toprovide support from objective, professional
points of view.
• We introduced the Technical Master System andother measures to enhance and share skills.

• The Keg Fresh Beer Quality Seminar is held forwholesalers, retailers and restaurants.
• In the mass retail market, we conduct freshness
checks in sales areas and hold store-front freshness
seminars.
• Product orientations are conducted to anticipate
any possible problems during distribution.

Labeling and Advertising

We have built a fast andefficient logistics system fordelivering “fresh-fromfactory quality” to customers. P17

As an alcoholic beverage provider,
we ensure adequate product labelingand advertising expressions live up to
the trust placed in us by our customers. P19• We are working with partner carriers to reduce
lead time.
• We employ direct delivery from factories andtransit distribution centers to prevent productdeterioration.
• We are devising means to avoid quality
reduction from exposure to sunlight orvibration.

• Our Public Expression Committee rigorously examines
labeling and expressions of products and advertisingcontent.
• We try to ensure labeling and expressions appearing on
product packaging are easy to understand.

For Local Communities

For Employees

Logistics

For Business Partners

Logistics

Distribution
and Sales+
Labeling andAdvertising

For Shareholders
and Investors

Manufacturing

Pursuit of Quality

We work with wholesalers, retailers
and restaurants to guarantee
the highest freshness and quality. P18

Activities Promoting Moderate
and Responsible Drinking

We have introduced various
mechanisms and systems to
produce products of the best quality. P15

For Consumers

Distribution and Sales

Environmental
Conservation Activities

Manufacturing

Priority Initiatives of the Asahi Breweries Group

Reference Web site: “Commitment to Quality” http://www.asahibeer.co.jp/quality/index.html (in Japanese)

CSR Report 200712

Priority Initiatives of the Asahi Breweries GroupPursuit of Quality

Product
Development

We incorporate information from customers into
product development and ensure that developed
products meet the strictest standards.

Asahi Breweries carries out stringent quality control
across the entire process of new product developments
so our latest offerings fully satisfy the design quality
requirements as safe and dependable goods.
The appropriate departments conduct tests andexaminations of quality risk associated with raw
materials, packaging materials, product formulationand labeling to confirm compliance with related laws
and regulations as well as with internal standards.

Product Development That Incorporates theComments of Our Customers and Retailers

by employing externalmonitoring, tests anddurability reviews at
research laboratories
under conditions suchas being dropped andexposure to high andlow temperatures. We
also conduct
Vibration testing
experiments using
both simulated and actual transportation equipment toconfirm that containers are able to maintain their integrityin the course of delivery.

Analyzing feedback from our customers and retailers,
which in turn is reflected in our product development
At Asahi Breweries, the comments of customers andretailers gathered by our nationwide sales team are sharedon our Intranet. In addition, a variety of opinions andrequests are sent to the Customer Relations Office. The
product development department analyzes thisinformation and strives to incorporate the opinions ofcustomers and retailers into product development.

Guaranteeing Product Safety and Quality
Confirming quality using a variety of inspection methods
At every stage of new
product development,from raw materials to
the final product, we
review compliancewith quality standards
as stipulated under the
Food Sanitation Law
as well as with our stricter internal standards. We also carryout stability inspections to see whether products maintaintheir integrity through delivery to customers, and we
conduct forced life-tests to examine developed products byartificially creating the state beyond the “best before” date.

Checking Quality Risk
New Product Development Process
Verification Meeting
Asahi Breweries established the New ProductDevelopment Process Verification Meeting in June 2006 tooversee the final review confirming that individual
departments have sufficiently identified and addressedrisks to quality. Meeting participants include staff members
from the production, material procurement, patent/legal
affairs and quality assurance departments, as well as the
product development and research departments, toensure objective and systematic judgment. Only initiatives
approved by the meeting, which serves as the final
gateway of our development process, can proceed to
production in our factories.
New Product Development Process
Planning

Content and outer
package development

Preparation for
production at factories

Ensuring Safety and Durability of Packages
Deploying a number of verification methods,
including external monitoring
When selecting containers, we conduct not only safety
tests of the material but also multidimensional
examinations covering such characteristics as being easy
to open, drink, hold and carry. In addition, we verify quality

13 CSR Report 2007

Preparation for mass
production at factories

Sales

The New ProductDevelopment Process
Verification Meeting

QA Meeting

Quality audits of suppliers

Pursuit of Quality
Activities Promoting Moderate
and Responsible Drinking
For Consumers

Asahi Breweries has established standards for raw
materials, raw material inspections and raw material risk
management. We have also defined items, methods,
frequency and standard values for analytic testing tocheck the quality and stability of raw materials everyday
upon receipt and prior to use. Before adopting any newmaterials, we obtain samples to confirm their safety.
Water is a key ingredient in beer and other products.
We have added our own inspection checkpoints, such as
the presence and concentration of residual chlorine, tothe 50 items defined in the Ordinance on Potable Water
Quality Standard, as stipulated under the Water Supply
Law, for inspecting water safety and suitability for use in
our products.

Employee comments
The launching of the
AAA System (rawmaterial information
management system)
Kenichiro Kobata

For Business Partners

When selecting raw material suppliers, Asahi Breweries
always reviews such information as the agriculturalchemicals used, agricultural chemical application records
and analytic data. We then sign a quality contract with andreceive raw materials only from suppliers who cooperatewith us in ensuring safety, including compliance with
agricultural chemical residue standards based on Japan’s
Positive List System.
Even after procurement has begun, we conduct quality
audits of suppliers for the consistent quality of materials.
The procurement department regularly visits suppliers’
material plants to check their quality control systems andsanitary conditions, from receiving materials to production
and shipment. We perform these audits to continually
improve standards by mutually recognizing and acting on
quality issues with our suppliers. If we discover any
problems in the quality provided by a supplier, we offer
instructions for improvement. If necessary, we will cancel
orders from suppliers who fail to demonstrate
improvement.
In addition, we hold QA (Quality Assurance) Meetings
with each of our large-volume suppliers more than twice ayear to maintain and enhance quality. In 2006, a total of
30 QA Meetings took place to discuss quality targets andconcerns.

Defined inspection items for each type ofmaterial to check quality and stability

Quality Control Center, Asahi Breweries, Ltd.

As a part of our efforts to strengthen traceability,
Asahi Breweries and Nikka Whisky Distilling
established the AAA System to guarantee the uniform
management of raw materials and productinformation, with full-fledged operation starting in
April 2007.
The system manages information on the quality andnutritional components of raw materials as well as the
additives and content for all alcoholic products*
manufactured by the two companies. If any problem
is discovered with the raw materials, for example, thesystem allows us to instantaneously search for
products that may contain the relevant material.
We plan to utilize this system at the “check” stageof the PDCA cycle for quality management by
gradually entering the implementation records ofquality audits. Furthermore, we intend to enter
information for every material used so that we canverify the safety and security of products offered by
Asahi Breweries Group at any point.

For Employees

Regular quality audits and QA Meetings

Quality Inspection of Raw Materials

For Local Communities

Efforts with Suppliers

Priority Initiatives of the Asahi Breweries GroupIn order to guarantee food safety, Asahi Breweries isdedicated to the exclusive procurement of safe raw
materials by setting stringent quality standards for allmaterials while conducting regular quality audits ofsuppliers. In addition, we have strengthened thetraceability of raw materials and product information
and are utilizing the results to support prompt
responses to problems and meticulous quality control.

Environmental
Conservation Activities

We are working to reinforce quality audits andtraceability to maintain the stable procurement ofsafe, high-quality raw materials.

For Shareholders
and Investors

Procurementof Raw
Materials* Excluding wine

CSR Report 200714

Priority Initiatives of the Asahi Breweries GroupPursuit of Quality

Manufacturing

We have introduced various mechanisms andsystems to produce products of the best quality.

Based on our management philosophy, Asahi
Breweries operates a rigorous quality management
system to maintain the stable production of items withthe highest integrity. We respond to customer demandthrough production and food sanitation activities thatcomply with prevailing laws and ordinances whileworking to achieve the consistent effectiveness andongoing improvement of our quality management
system to prevent problems.
Flow of Taikoban Guarantee System,
Our Quality Assurance System
Department staff
responsible for individual
production processes
Staff enters results of quality inspection
and analysis and operational status of theequipment for each production lot.
TECOS21
Each department verifies that the correct
process is being followed to secure
consistent quality based on the conceptof CCP shipment decisions and issues aquality warrantee.
Quality warrantee
Products are shipped after the staff responsible for quality
assurance has checked all warrantees and applied a
Taikoban seal.

quality assurance checks all warrantees and applies a
Taikoban seal that confirms quality prior to shipment.
If any abnormality is discovered, the system is designed
to prevent a product from proceeding to the next step until
the cause has been identified and quality can be ensured.
TECOS21TECOS21 (TEchnical COmputer System) is a
proprietary network system with a data backup
function to issue the quality warrantees necessary
for the Taikoban Guarantee System. By entering
quality inspection and analysis data for each process
into TECOS21, we can instantaneously conductcomparisons against standards and reference values
and confirm the operational status of the related
equipment (trends).
CCP shipment decision
CCP (Critical Control Points) is a concept for
shipment decision items in the Taikoban Guarantee
System and conforms with HACCP (Hazard Analysis
and Critical Control Points), with the goal ofchecking from the customer’s point of view forpotential problems that could lead to impaired
integrity in processing, materials and design.
Shipment decisions can be made with higher
accuracy because the responsible staff in the
production process applies these criteria toconfirm quality.

Quality Assurance System
Thorough Taikoban Guarantee System for confirming
products are manufactured in compliance with ourprocedures and meet a specified quality level
Since introducing the
Taikoban Guarantee
System, a unique quality
assurance system, in
1991, Asahi Breweries
has been guaranteeingthat products delivered
to customers were
manufactured throughprescribed processes and that designated standards havebeen achieved.
The staff responsible for each process in our brewing,packaging, engineering and quality control departments
checks the quality and operational status of equipment foreach lot and issues quality warrantees using TECOS21, a
factory network system. Finally, the staff responsible for

15 CSR Report 2007

Identifying the causes of possible accidents inorder to nearly eliminate quality risk factors
We clarified causes that can lead to the remote possibilityof microbial contamination, the intermixture of foreign
liquid or gas, the entry of foreign substances and incorrect
mixing of different varieties, using an approach based on
examining the actual site, items and overall situation
without overlooking predictors. The results have been
compiled into equipment and process guidelines. Anychange in equipment or process is incorporated in theguidelines for common reference.
In addition, we annually conduct a self diagnosis basedon these guidelines and have compiled required
improvements into the “Measure Implementation Report,”
which is used for our own improvement purposes.

Technical Improvement andApprenticeship System

At the Quality Control Center, we carry out chemical
analysis to examine products and raw materials tomeet corporate standards, as well as risk
management analysis to review risk factors such as
agrichemical residues and fungal toxins based on
those standards. Through these analyses, we verify
and guarantee that our products maintain quality thatcomplies with the standards stipulated in the Food
Sanitation Law and other regulatory standards.
In 2006, we conducted an actual condition surveyof agrichemical residues focusing on wine and otherbeverages and provided product safety information in
response to the Positive List System for Agricultural
Chemical Residues in Foods, enforced in May ofthat year.

The Technical Expert System andApprenticeship System

Pursuit of Quality

Employee comments
For Business Partners

We support humanresource development andthe sharing of techniquesand skills.
Mayumi Ochiai
Technical Training Center, Asahi Breweries, Ltd.

The Technical Training Center was established in
1993 to support the development of humanresources in the manufacturing division and thesharing of techniques and skills required for brewing
beer. The center offers systematic brewing,packaging, quality control and engineering programs.
Looking ahead, we intend to formulate a structure
to support the human resource development efforts
of individual Group companies.

For Shareholders
and Investors

SystemYear
introduced

For Employees

Use of Skill Improvement and Transfer Systems
State of use

Technical Master
System2001

11 employees have been certified
as of 2006

Technical Expert
System2005

81 technicians have been certified
as of 2006

Apprenticeship
System2005

13 employees have joined as of thefirst quarter of 2006

CSR Report 2007

For Local Communities

Consistently producing good products requires
establishing, improving and sharing the techniques thatform the backbone of manufacturing.
Asahi Breweries has established systems to support thegrowth of employees in its production division into a teamof manufacturing experts equipped with unique methods.
Especially notable are the Technical Master System, which
certifies technicians who have attained a high level of coreexpertise to share their knowledge and train nextgeneration technicians, and the Technical Expert System,
which certifies employees who are cultivating theirexpertise and skills toward becoming a Technical Master.
In addition, we have introduced the Apprenticeship
System in which employees can improve their techniquesand skills as apprentices under a Technical Master orTechnical Expert. The objective of the system is to create alearning environment while at the same time boosting thelevel of workers’ skills and encouraging the exchange oftechniques at the production worksite.
We are working on comprehensively improving
techniques and skills and transferring them to younger
workers by identifying the competencies required by theorganization and using these systems to motivate
each employee.

Activities Promoting Moderate
and Responsible Drinking

Quality Control Center, Asahi Breweries, Ltd.

For Consumers

Asahi Breweries
established its Quality
Control Center tosupport quality
assurance at individualGroup companies.
Physicochemical
and microbial analyses
are conducted for raw
Quality Control Centerand supplementarymaterials and both completed and semi-finished products
based on company standards that stipulate items to beanalyzed, standard values and the frequency of analysis.
Results are given to the relevant company along withtechnical support for identifying and addressing quality risks.

Employee comments
We analyze risk management
associated with agrichemical
residues, fungal toxins andother hazardous materials.
Yoko Iwama

Priority Initiatives of the Asahi Breweries GroupThe Quality Control Center—providing support
from an objective and technical point of viewEnvironmental
Conservation Activities

Quality Assurance in Group Companies

16Priority Initiatives of the Asahi Breweries GroupPursuit of Quality

Logistics

We have built a fast and efficient logistics system fordelivering “fresh-from-factory quality” to customers.

Variations in temperature and vibration in the courseof transporting and storing products can cause their
quality to deteriorate. In addition, loading andunloading must be performed with care to maintainthe best exterior conditions. Asahi Breweries Group
implements a variety of efforts in its logistics
operations to ensure the delivery of “fresh-fromfactory quality” to customers.

vehicles, Asahi Breweries has been introducing wing
vehicles*1 that accelerate loading and unloading and AIR
SUS vehicles*2 that cushion the shock to the load. Thesevehicles now account for about 90% of our delivery fleet.
In addition, we are also enhancing the function of the
Asahi Quality Sheet to shield products from sunlight andare introducing heat-insulated cars.

*1 Wing vehicle: The sides of the vehicle bed open like the wings of abird, allowing loading and unloading from both sides.

*2 AIR SUS vehicle: Vehicle that uses air springs instead of metal springs
Shortening Lead Timesfor suspension. The absorption of vibration by air reduces impact to theloading space.

Collaborating with retailers to deliver products atjust the right time
It is important to deliver beer as soon as possible after
production so that customers can enjoy its fresh taste. For
this purpose, it is essential to shorten the lead time fromfactory to points of sale, which requires effectively
coordinating delivery methods and the time between Asahi
Breweries and its wholesalers and retailers. Therefore,sales and logistics personnel regularly visit wholesale
distribution centers to keep abreast of the delivery
environment. In addition, they make arrangements with thelogistics staff of the wholesalers to ensure efficient delivery
with the best possible timing.

Delivering directly from factories and transit
distribution centers to avoid product deterioration
At Asahi Breweries, more than 90% of the total volume of
product is delivered directly from the factory to respective
wholesalers without passing through a distribution center.
By knowing the required shipment volume ahead of timeand shipping immediately after production, we prevent
product deterioration from extended storage inwarehouses.
When we use a distribution center, we select a transit
distribution center that immediately sorts and delivers
products upon arrival to avoid a reduction in quality fromholding inventory onsite.

Care During Transportation
Countermeasures for preventing degradation of
product quality from exposure to sunlight or vibration
To avoid quality deterioration from exposure to sunlight orvibration during loading or unloading from delivery

17 CSR Report 2007

Asahi Quality Sheet

Employee comments
We continually pursue quality
improvements in collaboration
with partner carriers.
Kazuhiro Yamamoto
Chief of the Logistics Center,
Nishinomiya Plant Asahi Breweries, Ltd.

Quality assurance during transportation requires
close collaboration with partner carriers. Therefore,
we always make sure that the drivers of the partner
carriers are sufficiently experienced in thetransportation of Asahi Breweries products.
At the Logistics Center of the Nishinomiya Plant,
we ask drivers who are delivering their first loads of
Breweries products to wear red safety vests insteadof yellow ones so people around them can beprepared to offer guidance or assistance. We also
confirm that cushioning materials are used to preventthe collapse of cargo, and we share information on
previous accidents and situations so that the drivers
fully understand beforehand what is required tomaintain quality and safety from loading to delivery.
We intend to establish an efficient shipment
structure to avoid making the drivers wait, allowing
them to fully concentrate on areas of concern.

Practice at Asahi Keg Fresh Beer
Quality Seminar

Lecture at the seminar

Reinforcing our equipment development andimprovement system
Draft beer equipment must be used and maintained in themost effective manner to serve good-tasting keg draft
beer. Therefore, we formulated an in-house quality
assurance system for draft beer equipment and definedroles for each organization and employee. We have also
held Draft Beer Equipment Development Meetings to more
rigorously verify product standards and other activities tofurther strengthen the quality of keg draft beer equipment.

Staff dedicated to the support of freshness managementon sales floors regularly visit individual outlets of massretailers and collect date-of-manufacture data. The data iscompiled at our head office and used in production andlogistics planning to continually improve freshness
management efforts.

Store-front freshness seminars for customers

Pursuit of Quality
For Business Partners

For Consumers

Store-front freshness seminars have been held at massretailers since 2006 to provide an opportunity forcustomers to learn about how to preserve the quality ofbeer and secrets for enjoying good-tasting beer at home.
In 2006, seminars were held at 50 locations nationwide.
In 2007, we plan to expand the project to 200 locations,focusing on large mass retailers while also enriching
seminar content.

Activities Promoting Moderate
and Responsible Drinking“Freshness check” campaign on sales floors

Efforts by Sales Staff
Product Knowledge Training for simulating thediscovery of defective products after shipment
Asahi Breweries’ basic policy for responding to customer
concerns over product defects is to visit the customer to
conduct a proper investigation and follow up with a reportand prompt response in a respectful manner. To
concretely implement this policy, we hold ProductKnowledge Training for new recruits and recently
appointed sales staff.
The training simulates the causes of diverse defectives
that can occur in the period between shipment from thefactory and final delivery to customers so that trainees canascertain the problem based on the specific defect. For
example, they learn that defects to a dropped can of beerdepend on the direction and impact of the drop.
By participating in this training, sales staff learn betterways to listen to customers describe the discovery of thedefect in more detail, thereby improving the accuracy ofsubsequent investigations at factories and laboratories.

For Employees

Holding Keg Fresh Beer Quality Seminars
To ensure customers always get the best keg draft beer,
Asahi Breweries conducts Keg Fresh Beer Quality
Seminars for wholesalers, retailers and restaurants.
At the seminar, instructors offer lectures and explain thebest practices for the appropriate handling of keg draft
beer and draft beer equipment. In addition, employees ofAsahi Draft Beer Service, Ltd. who have qualified as
instructors train seminar participants in actual restaurant
settings.
By the end of 2006, approximately 38% of restaurantsthat serve Asahi Breweries brand keg draft beer hadparticipated in a Keg Fresh Beer Quality Seminar.

Initiatives for Mass Retailers

For Local Communities

For Customers to Enjoy Drinking Tasty
Keg Draft Beer

Priority Initiatives of the Asahi Breweries Group

Asahi Breweries is committed to the concept of“quality at the moment of drinking” in order to enhancecustomer satisfaction. We have been strengthening
quality control at the stages of distribution and sales incollaboration with wholesalers, retailers andrestaurants by enhancing the methods for handlingkeg draft beer and equipment and confirming
freshness at the points of sales and consumption.

Environmental
Conservation Activities

We work with wholesalers, retailers and restaurants
to guarantee the highest freshness and quality.

For Shareholders
and Investors

Distribution
and Sales

CSR Report 200718

Priority Initiatives of the Asahi Breweries GroupPursuit of Quality

LabelingandAdvertising

As an alcoholic beverage provider, we ensure
adequate product labeling and advertising expressions
live up to the trust placed in us by our customers.

Asahi Breweries pays the utmost attention toappropriate labeling and expressions on productpackages and in advertisement activities, an effort thatis worth earning customers’ trusts, with due
consideration for alcohol-related concerns, humanrights, the environmental and social ethics, as well ascompliance with related laws and regulations.
We promote advertisement activities to gain customer
sympathy and trust by establishing detailed policies forexpressions and displays under our “Voluntary
Advertisement Standards,” and voluntarily controlling
ad content in light of concerns over moderate andresponsible drinking and limiting TV commercials during
weekdays. In addition, we established our Public
Expression Committee as a cross-organizational review
entity, to ensure that every step is taken to ensure
appropriate labeling and expression.

Labeling and Expressions in Advertisements

Representative labeling and expressions on
product packages
Recycling markThe recycling mark indicatesthat packaging material canbe recycled and encourages
active support for reuse andrecycling.

Warning against drinking while pregnant,breastfeeding, or under 20 years of age
We display warnings against
drinking by pregnant andnursing women in addition
to the expression, “You are
not permitted to drink
alcoholic beverages if you
are under 20 years of age.”

Stringent reviews by the Public Expression
Committee
Asahi Breweries established the Public Expression
Committee in 1995 to examine and review product labelingand advertising content from various perspectives.
Subsequently in 2001, we strengthened its functions,membership and support system by adding such areas asproduct labeling and support materials to its oversight. The
committee consists of 15 members selected from the 15
divisions of the company and meets weekly. We only
launch products and advertising materials that have beenauthorized by the committee. All issues raised in thecommittee are recorded and countermeasures taken by the
related departments are reported in the meeting minutes sothat we can fully apply this information to our daily businessactivities. Asahi Soft Drinks Co., Ltd. and Asahi Food &Healthcare Co., Ltd. also promote similar programs.

Labeling and Expressions on Product Packaging
Appropriate consideration to diverse customers
while providing easy-to-understand information
We take into account customer feedback and public
expectations in label design and the content of productpackaging to help customers easily locate suchinformation as recycling guidelines and nutritional content,
while also considering underage consumers andcustomers who do not drink alcoholic beverages.

19 CSR Report 2007

BrailleTo assist visually challenged
customers in distinguishingalcoholic beverages fromsoft drinks, we have put the
Braille for “alcohol” on the
top of all canned alcoholic products.

“Alcohol” mark on low-alcohol beverages
To prevent underage
consumers or customers
who do not drink alcoholic
beverages from mistakenly
consuming them, we ensurethat a large “Alcohol” markappears on every low-alcohol
beverage container.

Asahi Food & Healthcare Co., Ltd
Each plant at Asahi Food &Healthcare Co., Ltd. has either
obtained ISO 22000 certification or is
working toward doing so. The Ibaraki and Osaka
plants were certified in 2006 and 2007, respectively,
and the Tochigi Plant is now preparing for certification.
In addition, the company has been conducting
quality audits of commissioned manufacturers and raw
material suppliers. In 2006, 35 audits were conducted,
including those done overseas.

CSR Report 2007

Activities Promoting Moderate
and Responsible Drinking
For Consumers
For Business Partners

Wakodo Co., Ltd.
Wakodo Co., Ltd. is taking
steps to ensure the safe
production of baby foods,
its flagship product, in
accordance with “TheInfant’s Nursing/Weaning
Support Guide” issued by
the Ministry of Health, Labour and Welfare, “BabyFood Voluntary Standard: IV” of the Japan Baby Food
Association, and other related guides governing milk
products for infants and general foods.
The company implements the continuous quality
monitoring of its suppliers by conducting systematic
audits, including traceability measures, while sharing
information via regular meetings and its Web site.

For Employees

Asahi Soft Drinks Co., Ltd.
The company’s three plants,
Kashiwa, Akashi and Hokuriku,
have been certified under ISO
9001 and HACCP. In addition,
the Fujisan Plant is preparing toapply for HACCP in 2008.
The company also started“A-zero” activities in 2006 to eliminate accidents
through the early detection of and response toindications of potentially serious quality accidents.

LB Co., Ltd. (Head Office, Aichi Prefecture)
LB Co., Ltd. (Head Office,Aichi Prefecture) worked toboost its quality assurance
system by strengthening its
double-check system upon receipt and use as well as
improving controls after the seals are broken tothoroughly control the management of raw material
expiration dates. Other efforts included establishing aLabeling Committee and a Quality Committee.

For Local Communities

Initiatives by Major Group Companies

Priority Initiatives of the Asahi Breweries GroupThe Asahi Breweries Group convenes a Group Quality
Management Committee to promote the quality
assurance operations of individual Group companies
and to exchange related information.
In 2006, the committee worked on developing
Group quality policies by reviewing responses to the
Positive List System and “Group Quality Crisis
Management Guideline” for potentially serious
accidents that may affect product quality. The quality
assurance departments of LB Co., Ltd. (twocompanies), Wakodo
Co., Ltd. and SunwellCo., Ltd. will join thecommittee starting in2007 to accelerate
information sharing
across the Group.

LB Co., Ltd. (Head Office, Saitama Prefecture)
LB Co., Ltd. (Head
Office, Saitama
Prefecture) applies thequality control
techniques adopted by
the partner factories of
the Asahi BreweriesGroup at its partner
plants. The company
seeks to further enhance quality as a part of its quality
audits and plans to conduct annual audits.
Furthermore, the company holds quality
improvement workshops for suppliers and strictly
requires distribution and sales partners to transportshipped products at 10°C or less and to sell them inrefrigerated cases.

For Shareholders
and Investors

The Group Quality Management Committee
has developed quality policies andestablished crisis management guidelines.

Environmental
Conservation Activities

We will promote Group-wide quality control activities.

Pursuit of Quality

For the Next

20

Priority Initiatives of the Asahi Breweries Group

Activities Promoting Moderate and Responsible Drinking

Being engaged in various educational
activities to fulfill our responsibility as an
alcoholic beverage maker.
Throughout history, alcohol has brought delight and pleasure into the daily lives of people
around the world through a close relationship with local climates and lifestyles. At thesame time, inappropriate drinking habits are known to cause a variety of problems forindividuals, homes and society at large.
The Asahi Breweries Group believes it is our responsibility as an alcoholic beveragemaker to lead the way in solving these problems, and we are applying ample energy toward
educational activities to promote moderate and responsible drinking by maintaining a
dialogue with customers, industry associates and stakeholders around the world.

Alcohol is a common cultural heritage of humankind
that brings delight and pleasure into daily life.
Throughout the long history of humankind, alcohol has not only brought delightand pleasure into daily life, but has played an important role in celebrations andother commemorative moments. Since ancient times, we have produced various
types of alcoholic beverages using different materials and methods, such as
beer, whisky and wine. These alcoholic beverages were developed within therespective climates and cultures of each country or region, but a wide variety is
now being enjoyed across borders. In this sense, alcohol is a common cultural
heritage of humankind. The Asahi Breweries Group takes great pride incontributing to the enrichment of people’s daily lives through the production andsales of alcoholic beverages.

21 CSR Report 2007

WEB

Visit our Web site at: http://www.asahibeer.co.jp/csr/ (in Japanese)

Drinking During Pregnancy

Drunk driving is
extremely dangerous
P23
behavior.

Unborn and newborn babies arevulnerable in the mother’s body andwhile breastfeeding.

• We raise broad customer
awareness through TV
commercials and advertisements
in magazines and newspapers.
• We distribute educational
posters for the prevention of
drunk driving to customers that
operate dining and drinking establishments.
• We display educational posters for theprevention of drunk driving at eachestablishment operated by our restaurant
business and at tasting rooms
during brewery tours.

• We display warnings on products andadvertisements.

Drinking During
Pregnancy

For Consumers

Drunk Driving

P25

For Shareholders
and Investors

For Business Partners

Inappropriate drinking habits cause
a variety of problems in society.
Asahi Breweries is engaged in a sincere
effort to address these issues.

For Employees

Binge Drinking

Underage Drinking

Binge Drinking

Negative effects occur during
P24
the growth phase.

Acute alcohol poisoning
can lead to death.

• The beer industry is promoting
the “STOP! Underage Drinking”
campaign against underagedrinking.
• Asahi Breweries established
the Fund for the Prevention ofUnderage Drinking in 2005.

• We raise awareness throughpamphlets and Web sites designed
to encourage an understanding ofmoderate and responsible drinking.

P25

For Local Communities

Underage
Drinking

Activities Promoting Moderate
and Responsible Drinking

Drunk Driving

Priority Initiatives of the Asahi Breweries Group

Reference Web site: “Alcoholic Beverages and Health” http://www.asahibeer.co.jp/csr/tekisei/health/ (in Japanese)

Environmental
Conservation Activities

http://www.asahibeer.co.jp/csr/tekisei/guidebook/ (in Japanese)

Pursuit of Quality

Reference Web site: “Guidebook for Moderate and Responsible Drinking”

CSR Report 200722

Priority Initiatives of the Asahi Breweries Group

Activities Promoting Moderate and Responsible Drinking

Pursuing an educational effort to encourage
Philosophy moderate and responsible drinking to fulfill ourandresponsibility as an alcoholic beverage maker
Systemthrough an ongoing dialogue with society
The Asahi Breweries Group encourages moderate andresponsible drinking based on our recognition of thecharacteristic properties of alcoholic beverages.
Through these efforts, we hope to fulfill our social
responsibility and to contribute to the sounddevelopment of the culture of alcohol and therealization of an affluent society.

Asahi Breweries Group’s Basic Philosophy for
Promotion of Moderate and Responsible Drinking
The Asahi Breweries Group, while aiming for the sounddevelopment of the culture of alcohol, seeks to fulfill its
social responsibility and to contribute to the realization of ahealthy and affluent society by recognizing thecharacteristic properties of alcohol and by encouraging
moderate and responsible drinking through a systematicand consistent effort.

Philosophy and System of Promotion
Establishment of the Moderate and Responsible
Drinking Committee based on our Basic Philosophy“Encouraging Moderate & Responsible Drinking” is one of
Asahi Breweries’ Six Priority Initiatives for CSR activities. In
2004, we formulated the Asahi Breweries: Basic
Philosophy for Promotion of Moderate and Responsible
Drinking and established the cross-organizational
Moderate and Responsible Drinking Committee.
In 2006, the committee actively promoted educational
activities to prevent drunk driving, which has become amajor social issue, and selected organizations to which
grants will be provided by the Fund for the Prevention ofUnderage Drinking in its second year of supporting
research and social activities. We are also holding public
seminars on moderate and responsible drinking in atimely manner.

Eliminationof Drunk
Driving

Guidebook for Moderate and Responsible Drinking
Asahi Breweries publishes the Guidebook for Moderate andResponsible Drinking, which is useful those who comes
into close contact with alcoholic beverages, from juveniles
who have yet to start drinking to senior citizens who haveenjoyed alcoholic beverages for years. Through a
combination of text and cartoons, the pamphlet warns
against dangerous drinking habits andexplains the key points for the healthy
enjoyment of alcohol in a style that is easy
to understand.
The guidebook is distributed to anyone
upon request through our Web site, or byphone or fax, as well as to universities
Guidebook fornationwide, where it is used to provide
Moderate andResponsible Drinking
guidance to freshmen students.

We Actively Promote Educational Activities ThroughTV Commercials, Newspaper and Magazine Ads,
and Posters at Dining and Drinking Establishments

In 2006, a string of serious accidents caused by drunk
driving occurred throughout the country, making it amajor social issue. Even in relatively small quantities,
alcohol intake results in a concentration of alcohol inthe bloodstream, which impairs the faculties requiredfor driving, such as vision, reflexes and judgment, inturn increasing the risk of an accident. Accidents
can result in unbearable losses for both offenders
and victims.

23 CSR Report 2007

Publication of Educational Pamphlets

Education Through the Media
Reinforced call against drunk driving
To eliminate drunk driving, in 2006, wesought to educate the public through TV
commercials and newspaper and magazine
advertisements, distributed posters to dining
and drinking establishments, and reinforced
our efforts to raise awareness atestablishments operated by our
restaurant business.

Poster urging theprevention of
drunk driving

Toward Eliminating
Drunk Driving
Takahiro Watabe
Manager, Hakata Store,
Asahi Beer Garden, Ltd.

In view of the fact that drunk driving has become asocial issue over the past year, we at Asahi Beer
Garden, Ltd. are engaged in a full-scale prevention effort
at all our establishments.
For example, we display posters and stickers inside
our establishments urging the prevention of underagedrinking and drunk driving. We indicate in our menus

Promoting Educational Activities to Prevent
Underage Drinking Through Joint Industry Projects
and Management of the Fund

Initiatives Taken by the Beer Industry

project to prevent underage drinking. This joint project
bolsters the activities of five beer makers that have been
combatting underage drinking over the years.
In addition to displaying the “STOP! Underage Drinking”
symbol mark and slogan in TV commercials andadvertisements for alcoholic beverages, we also publish
newspaper and transit advertisements at the start of eachnew school term, during the annual cultural festival season
and at the end of the year. In 2006, we stepped up the
campaign with the cooperation of the convenience store
and supermarket industries by placing ads
with the symbol mark on alcoholic beverage
shelves, and by asking junior high schools
and high schools nationwide to participate
in creating original campaign posters.
Brewery Association of Japan
http://www.brewers.or.jp/english/index.html

Supporting the “STOP! Underage Drinking” Project
Since October 2005, the Brewery Association of Japan
has been promoting the “STOP! Underage Drinking”

CSR Report 2007

Pursuit of Quality
Activities Promoting Moderate
and Responsible Drinking
For Employees
For Local Communities

Of the various problems related to alcohol, underagedrinking has a particularly strong impact on society. It
is associated with the risk of impaired growth, sexual
dysfunction and physiological disorders such as liverand pancreas ailments due to the lower metabolic
breakdown of alcohol in youths compared with adults,
in addition to the greater likelihood of developing an
alcohol dependency at an early age.
Asahi Breweries is making a broad effort to fight thisproblem, including the “STOP! Underage Drinking”
project campaign undertaken jointly with the Brewery
Association of Japan, management of the Fund for thePrevention of Underage Drinking and the creation of
educational videos targeting junior high school students.

For Shareholders
and Investors

Preventionof Underage
Drinkingthat we do not serve alcoholic beverages to underagecustomers and drivers; this information is also verbally
explained when orders are taken.
Drivers who visit our shops are asked to wear our
original Asahi Beer Garden “Driver’s Badge.” We
attached a strap to the badge to encourage more drivers
to display it, which led to an increase in the number ofwearers and a change in awareness.
Furthermore, to encourage the use of designateddrivers, we have placed cards near the cash register on
the way out and inside the parking lot.
Through these efforts, we hope to continue
contributing to the elimination of drunk driving.

For Consumers

Employee comments“Prevent Drunk Driving” badge

For Business Partners

We offer tasting opportunities for visitors who tour
factories in which alcoholic beverages such as beer are
manufactured. However, for visitors arriving in cars, we
identify the drivers at the entrance and ask them to wear a“Prevent Drunk Driving” badge in an effort to avoid
mistakenly encouraging alcohol tasting.

Priority Initiatives of the Asahi Breweries Group

Encouraging drivers to be responsible at alcohol
beverage tastings

In addition, to promote moderate and responsible
drinking, we have placed flags and posters appealing
against drinking and driving in parking lots and inside
tasting rooms. Tour guides also wear
“Prevent Drunk Driving” badges.

Environmental
Conservation Activities

Considerations During Brewery Tours24

Priority Initiatives of the Asahi Breweries Group

Activities Promoting Moderate and Responsible Drinking
Initiatives Taken by Asahi Breweries
Managing the Fund for the Prevention ofUnderage Drinking
Asahi Breweries established the Fund for the Prevention ofUnderage Drinking to contribute to addressing the
problem of underage drinking. The fund primarily supports
medical and socio-cultural research on the prevention ofunderage drinking and organizations and individuals that
hold prevention forums and seminars. A total of 10 million
yen is distributed every year. The fund publicly solicits
projects that are qualified for a grant every year and areview board consisting of experts strictly reviews projectapplications and selects qualified candidates. In 2006,
applications were accepted from January through March,and 11 projects were selected.

Prevention of
Drinking During
Pregnancy andBinge Drinking

Asahi Breweries, in collaboration with Nikka Whisky
Distilling Co., Ltd. and the Alcohol Health and Medical
Association, Inc., planned and produced an educational
video titled, “A Step Towards a Brilliant Future-Junior HighSchool Students Say NO! to Alcohol,” for preventing
underage drinking particularly among junior high school
students. The video is being distributed to junior highschools nationwide.
It features junior high school students learning on theirown about how drinking alcohol out of curiosity or bysome opportunity could negatively affect the body andmind during their important stage of growth, along withthe latest evidence-based medical data.

Endeavoring to Prevent Drinking During Pregnancy
and Binge Drinking Through Warning Labels on
Products and Distribution of the Guidebook

Drinking during pregnancy and binge drinking canhave dangerous effects on the body, and the Asahi
Breweries Group is urging the prevention of such
behavior.

Prevention of Drinking During Pregnancy
Educating the public about the dangers ofdrinking during pregnancy
Alcohol intake by pregnant women may in some cases
result in the birth of babies with congenital anomalies suchas abnormal facial features, impaired growth anddysfunctions in the central nervous system (disabilities inlearning, memory, attention deficits and communication,
vision, or hearing problems). During breastfeeding, alcohol
can enter the baby’s body through breast milk. Asahi
Breweries communicates the dangers of drinking during
pregnancy through warning labels on products andeducational pamphlets

Warning labels against drinking during pregnancy
Since June 2004, theindustry has
voluntarily included
warning labels against
drinking during
pregnancy andbreastfeeding with thephrase, “Drinking alcohol during pregnancy orbreastfeeding may negatively affect the growth of unborn
and newborn babies.”

25 CSR Report 2007

Distributing educational videos for junior highschool students

Prevention of Binge Drinking
Educating the public about the dangers of
inappropriate drinking habits
During binge drinking, the massive intake of alcohol in ashort period of time may occur too fast for the liver’s
metabolism, raise alcohol concentration and result inacute alcohol poisoning. This can cause death throughbreathing difficulties or choking on vomit.
It is important to understand these dangers and tonever engage in or encourage binge drinking.
Asahi Breweries seeks to educate the public onmoderate and responsible drinking by providing
explanations on binge drinking and other dangerous
drinking habits in both the printed and Web-based
versions of the Guidebook for Moderate and Responsible
Drinking.
Guidebook for Moderate and Responsible Drinking
http://www.asahibeer.co.jp/csr/tekisei/guidebook/(in Japanese)

Activities Promoting Moderate
and Responsible Drinking
For Consumers

Asahi Breweries published a Japanese-language
version of Drinking in Context (edited by Gerry
Stimson, Marcus Grant, Marie Choquet and Preston
Garrison) published by the ICAP, which is sponsoredin part by Aasahi Breweries. The book is being soldthrough Kinokuniya Bookstore at its 59 storesnationwide.
Drinking in Context was completed after two yearsof discussions by international experts on alcoholrelated issues. The book examines various drinking
habits in different countries, while also verifying
different national and cultural attitudes toward issues
related to alcohol, such as drunk driving andunderage drinking. It explores the ideal alcohol policy
and offers an overall analysis of the social role andimportance of the culture of drinking. The book has
been sold primarily in North America and Europe
since the end of December 2006; this is the firstJapanese translation.
By collaborating with the ICAP and others, Asahi
Breweries intends to continue promoting moderate
and responsible drinking from a global perspective
and to spread proper understanding of the role ofalcohol in society.

For Business Partners

On June 19–20, 2006, the Brewery Association ofJapan and the Japan Spirits & Liquors Makers
Association, in collaboration with the International
Center for Alcohol Policies (ICAP)—a think tank on
alcohol policies—held the Alcoholic Beverage
Industry’s “Workshop on Self-Regulation—Asia-PacificRegion” at the Keidanren Hall in Otemachi, Tokyo.
The workshop was attended by 130 participants,
including those from abroad. Presentations were madeon efforts in various countries concerning publicity andadvertising for alcoholic beverages, and an active Q&A
session was held. The workshop culminated in theTokyo Declaration communiqué containing points suchas responsible advertising and sales of alcoholic
beverages through self-regulation, as well as the
improvement and expansion of such regulations
throughout the Asia region.
Asahi Breweries will support the communiqué andcontinue promoting responsible publicity andadvertising activities as a member of the alcoholic
beverage industry and of the global community.

Priority Initiatives of the Asahi Breweries Group

Japanese Translation of Drinking in Context
Published as Part of the Efforts for Promoting
Moderate and Responsible Drinking

Japanese translation of
Drinking in Context

For Employees

For Shareholders
and Investors

We Participated in the Alcoholic Beverage
Industry’s “Workshop on SelfRegulation—Asia-Pacific Region”

Environmental
Conservation Activities

Reinforcing Collaboration with the Industry and theInternational Community in Activities to Educate the Public
on Moderate and Responsible Drinking

Pursuit of Quality

For the Next

Lecture by the author

For Local Communities

Scene from the workshop

CSR Report 200726

Priority Initiatives of the Asahi Breweries Group

Environmental Conservation Activities

We strive to reduce the environmental burden associatedwith our own business as well as the overall
environmental burden on society in general.
To protect the precious blessings of nature and pass them on to future
generations, Asahi Breweries is addressing the responsible use of resourcesand energy and working to reduce the environmental burden associated withthe production process.
We promote environmental protection in the Group’s logistics and sales
business activities and also participate in forest conservation andenvironmental communication activities with people outside the Group.

Reductionof theEnvironmental
Burden in
Logistics

Through the Group’s
Production Operations

Reduction ofGreenhouse
Gas Emissions
Water
Resource
Conservation• We are significantly reducing CO2 emissions
through the ongoing implementation of energysaving measures.
• We are making efforts to conserve water
resources that constitute one of our raw materials.
• We are working toward 100% recycling acrossthe entire Group.

Waste
Reduction

Basic Environmental Principles
Basic Philosophy

Guidelines for Activity

Beer is made from the bounties of nature, such as water,barley and hops. We at the Asahi Breweries Group
believe we are responsible for ensuring our children
inherit a healthier planet. To achieve our goals forprotecting this beautiful planet and the people who liveon it, we believe our actions must demonstrate our
gratitude for the natural bounty the Earth provides us all.

• Strive to promote waste reduction and recycling to reduce
the use of natural resources and to conserve energy.
• Endeavor to reduce the output and usage of substancesthat burden the environment, such as CO2 and CFCs.
• Promote systems and practices that conserve water, themost precious resource for the Asahi Breweries Group.
• Be aware of environmental concerns in product development,in the development of technologies and in procurement.
• Contribute to society by actively supporting environmental
protection activities and encouraging our employees toparticipate as well.

27 CSR Report 2007

WEB

Visit our Web site at: http://www.asahibeer.co.jp/csr/ (in Japanese)

In Our Overall Group BusinessWorking with Various People• We are endeavoring to reduce the environmental burden
associated with logistics.
• We are seeking to expand the use of sales andpromotional goods that cause less environmental burden.
• We are limiting waste generation at our establishments
while also reducing and recycling resources.
• We are contributing to the formation of arecycling society by promoting Reduce,
Reduction
Reuse and Recycle (3R).

• We hold environmental events andEnvironmental Culture Seminars forcommunity residents.
• We are expanding our efforts tonurture the resources that provide
us with precious water into asociety-wide endeavor.

Pursuit of Quality
For Shareholders
and Investorsof theEnvironmental
Burden in the
Restaurant
Business
ForestConservation• In addition to carefully observing all environmental laws andregulations, each affiliated company will develop its own
environmental standards.
• Outside Japan, be aware of local environmental concerns
and actively work to promote environmental protection ineach country in which the Group operates.
• Strive to communicate openly with society by providing
appropriate information on our environmental systems andpractices.

For Local Communities

For Employees

3R inContainers andPackaging

Activities Promoting Moderate
and Responsible Drinking
For Consumers

Environmental
Communication

For Business Partners

Reductionof theEnvironmental
Burden in Sales
Activities

Environmental
Conservation Activities

Reductionof theEnvironmental
BurdenThrough R&D

Priority Initiatives of the Asahi Breweries Group• We provide additional information on environmental management and detailed performance data on our Web site.

Let’s Stop Global Warming Together
Team Minus 6%
Asahi Breweries participates in the government’s nationwide“Team Minus 6%” movement to prevent global warming andactively engages in related efforts.

CSR Report 200728

Priority Initiatives of the Asahi Breweries Group

Environmental Conservation Activities

Targets andResults

We accomplished our goals for most of the
key issues under our Second Medium-term
Environmental Management Plan (2004–2006).

The Asahi Breweries Group formulated the Second
Medium-term Environmental Management Plan
(2004–2006) with the goal of reducing the environmental
burden of the entire Group by strengthening collaboration
within the Group under the leadership of the Group
Environmental Committee.
Looking back on the results for 2006, the final year of theplan, we achieved most of our targets for each key issue.

With respect to the reduction of CO2 emissions that
affect global warming, while we actively promoted energysaving measures and succeeded in significantly reducing
CO2 emissions per sales, we were unable to meet ourtargets on total CO2 emissions due to the expansion in thescope of our Group operations related to existing
businesses as well as to M&A and other factors.

Overview of the Second Medium-term Environmental Management Plan
Key Issue

Scope2006 Targets

2006 Results

1. Reduction in greenhouse gas emissions *1, *2
Total CO2 emissions: 404,300 tons/year(+15% compared with 1990)
Reduction of CO2 emissions
in the production process

All 12 *3 Total CO2 emissions: 381,800 tons/yearcompanies (+9% compared with 1990)* Total CO2 emissions in 1990: 350,400 tons/year[Reference]
CO2 emissions per sales volume: 318 kg/one million yen(-9% compared with 1990)* CO2 emissions per sales volume in 1990: 351 kg/one million yen
2. Promotion of energy conservation

All 12
1) Reduction in fuel andTotal energy consumed to achieve the above goal
electricity unit consumption companies for total CO2 emissions

2) Reduction in unit water
consumption

Total consumption: 23,230,000 m3/year
All 12companies (+15% compared with 1990)

Total energy consumption: 8,045,000 GJ/year[Reference]
Total energy consumption per sales: 5.69 GJ/one million yen
Total consumption: 21,438,000 m3/year(+6% compared with 1990)* Total consumption in 1990: 20,248,000 m3/year

3. Promotion of waste recycling

1) Promotion of waste
recycling at Group
manufacturing companies

Accomplished 100% recycling of waste andby-products at all sites of Group manufacturing
All 12companies
companies 28 sites, excluding LB Co., Ltd. (two companies), Wakodo* Co., Ltd. and Wako Food Industry Co., Ltd., which were

Accomplished 100% recycling at 27 sites, except the
Ibaraki Plant of Asahi Food & Healthcare Co., Ltd.

newly added to the Group during the fiscal term.

2) Promotion of recycling
at sales bases

Expanded number of sales bases that
Asahi
Breweries, accomplished 100% recycling
Scope: More than 50% of the 10 bases
Ltd.

Accomplished 100% recycling at 3 bases(Scope: Only paper and plastic waste that are directly
disposed of)

4. Promotion of the introduction of an environmental management system
1) Promotion of the introduction
Environmental management systems such as ISO
All 12of an environmental
14001 and EA21 introduced at all sites at Groupmanagement system at Group companies
manufacturing companies
manufacturing companies

Completed introduction of environmental management
system at all 32 sites, excluding Wako Food Industry
Co., Ltd., which was newly added to the Group during
the fiscal term

2) Promotion of the introduction of
Asahi
Introduced our own simplified environmental
an environmental management Breweries, management system, the Asahi Way, at all sales
system at sales bases
Ltd.
bases

Introduction completed ahead of schedule in 2004,
continuing to promote activities*1 Formula for converting fuel into CO2 emissions

Add CO2 emissions (tons) = purchase volume of various fuels (GJ) × CO2 emission factor (tons CO2/GJ)(For the CO2 emission factor, we use values as stated in the Guidelines for Method to Calculate Greenhouse Gas Emissions Generated at Businesses, published in July 2003 by the Ministry of theEnvironment, Global Environment Bureau)*2 Formula for converting electricity into CO2 emissions
CO2 emissions (tons) = electricity purchased (kwH) × CO2 emission factor (kg CO2/kwH)(For the CO2 emission factor, we use the latest value issued by the Federation of Electric Power Companies of Japan: 0.425 kg CO2/kwH for 2005)*3 All group manufacturing companies (12 companies):
Asahi Breweries, Ltd., Asahi Soft Drinks Co., Ltd., The Nikka Whisky Distilling Co., Ltd., Asahi Food & Healthcare Co., Ltd., Asahi Beer Malt, Ltd., Sainte Neige Wine Co., Ltd., Nippon Freeze Drying
Co., Ltd., Satsumatsukasa Shuzo Co., Ltd., LB Co., Ltd. (Head Office: Saitama), LB Co., Ltd. (Head Office: Aichi), Wakodo Co., Ltd., Wako Food Industry Co., Ltd.

29 CSR Report 2007

Policies on Environmental Conservation
Initiatives for 2007 and Beyond• As the First Commitment Period (2008–2012) of the
Kyoto Protocol approaches, we are making a Groupwide effort to tackle the challenge of reducing
greenhouse gas emissions to meet concrete mediumterm targets.

• To realize a recycling society, we will seek to reduce theenvironmental burden associated with our production
and businesses while placing value on our relationships
with the public, including future generations, and pursue
environmental conservation efforts Group-wide.

Priority Initiatives
Key Issue

Scope

Priority Initiatives for 2007 and Beyond

Production(1) Alcoholic Beverages Segment: Reduce total CO2 emissions by 15% and CO2 emission unit by 30% compared with 1990 by 2010
(2) Entire Group: Reduce total CO2 emissions to ±0% and CO2 emission unit by 15% compared with 1990 by 2010

Logistics

Reduction of CO2 emission unit per 1 kl in sales of alcoholic beverages by 4% compared with 2006 by 2010 (annual reduction of 1%)

Production

Achieve 100% waste recycling at all 33 manufacturing sites for the entire Group by 2010 (achieved at 27 sites asof the end of fiscal 2006)

Promotion ofwaste recycling

Reduction of environmental
burden in the supply chain
Overseas environmental
conservation activities

Asahi Breweries Sales Division

Accomplish 100% recycling at 3 bases (Scope: Only paper and plastic waste that are directly disposed of)Restaurant Division

Promotion of waste reduction and recycling

Procurement Division

Promotion of measures to reduce environmental burden in cooperation with suppliers

Asahi Breweries Sales Division

Promotion of sales and promotional goods that cause less environmental burdenInternational Division

Promotion of environmental conservation activities in China based on local social trends

Relationship with society
Enhancement ofenvironmental awarenessPursuit of Quality
For Business Partners

Reduction in greenhousegas emissions

For Consumers

Group business activities

Activities Promoting Moderate
and Responsible Drinking

Priority Initiatives of the Asahi Breweries Group

FutureEfforts

Environmental
Conservation Activities

Having completed the final year of the Second
Medium-term Environmental Management Plan,
we will now turn our Group-wide focus toward new
goals for 2007 and beyond.

Contribute to raising environmental awareness among people both inside and outside the company by emphasizing stakeholder relationships,
undertaking environmental communication and forest preservation activities, and combining the environment with art and social contribution activities

INPUT

For Shareholders
and Investors

Environmental Impact of Asahi Breweries’ Business Activities*1 A-grade heavy oil

City gas: 3,100,000 GJ (67,331,000 Nm3)
A-grade heavy oil*1: 561,000 GJ (14,435 kl)
Electric power: 1,807,000 GJ(176,254,000 kWh)
Total: 5,468,000 GJ
GJ (gigajoule) = J (joule) × 109

Bottles: 440,000 tons
Aluminum cans: 66,000 tons
Steel cans: 1,000 tons
Cartons: 37,000 tons
Bottle tops: 2,000 tons
Labels: 1,000 tons
Total: 547,000 tons

The sulfur content of A-grade heavy oil is less than or equal to 2%. Burning generates
less sulfur oxide than other grades of heavy oil.
2
* Corporate-owned Asahi Forest
The Asahi Forest located in Shobara City, Hiroshima Prefecture, and neighboring areasabsorbs 12,000 tons of CO2 every year.
* Scope: All breweries of Asahi Breweries, Ltd.
Recycling Company

Beer bottles collected from restaurants andshops are reused.

Service Water
Raw Materials

Collection of containers and packages

14,500,000 m3

Malt: 211,000 tons
Adjuncts: 157,000 tons
(rice, corn, processed materials, etc.)
Hops: 2,000 tons
Total: 370,000 tons

Bottles: 100.6% (2006)[Reference]
Aluminum cans: 91.7% (2005)
Steel cans: 88.7% (2005)
Cartons: 96.9% (2005)

Purchase of Liquefied Carbon Dioxide
Purchase: 6,100 tons
Collection by Asahi Breweries: 57,400 tons
Total: 63,500 tons

Fuel for Vehicles
979,000 GJ(light oil: 25,635 kl)

Production

Logistics

Beer-type beverages Production volume: 2,418,000 kl
350 ml can conversion: 6.9 billion cans in total

Total distance of transportation:
89,669,000 km

Air

Discharged Water

CO2: 272,000 tons SOx: 18 tons
Soot and dust: 2 tons
NOx: 85 tons

12,082,000 m3

OUTPUT

Disposal Materials
and By-Products:

289,000 tons

Air
CO2: 66,000 tons
NOx: 205 tons

For Employees

Resources

Sales

Air
SOx: 82 tons

Recycling

CO2: 12,000 tons

Consumption

For Local Communities

EnergyCorporate-owned
Asahi Forest*2
Absorption of CO2:
12,000 tons
Disposals and By-Products
100% Recycling

CSR Report 200730

Priority Initiatives of the Asahi Breweries Group

Environmental Conservation Activities—Through the Group’s Production Operations

Reduction ofGreenhouse
Gas Emissions

We are significantly reducing CO2 emissions
through the ongoing implementation ofenergy-saving measures.

The Asahi Breweries Group is implementing a fullscale effort to save energy and reduce CO2, CFC andother greenhouse gases that cause global warming.

CO2 Emissions (Asahi Breweries, Ltd.)(1,000 tons)

500

Efforts to Reduce CO2 Emissions
Reduced the basic unit by 30% from 1990 levels
Asahi Breweries’ size of production expanded 1.5 times
on a non-consolidated basis in 2006, compared with
1990. We nevertheless reduced CO2 emissions for
producing 1 kiloliter of beer-type beverages by 30% overthis same period through consistent energy-saving
efforts. Total CO2 emissions were 3% more than 1990
levels, and we fell slightly short of attaining our goal of±0%. Looking ahead, we will strive toward our 2010 goalof reducing total CO2 emissions by 15% compared with
1990 and CO2 emissions per unit by 30% for the entire
alcoholic beverages segment. While the size of
production for the Group expanded by 36% in terms ofsales compared with 1990 levels, the active promotion ofenergy-saving measures led by the Group Environmental
Committee had significant impact by reducing total CO2
emissions to +15% compared with 1990 and CO2
emissions per unit to -9%.

250

31 CSR Report 2007

121

120

115

113

337

317

314

287

272

Basic unit

100

Total CO2 50
emissions

0

0
1990

2002

2003

2004

2005

2006

CO2 Emissions (All 12 Group manufacturing companies)(1,000 tons)(kg/one million yen)

293

286

283

600

280
Basic

300

unit

400

350

420

404

394

386

200

Total
CO2
emissions

200

100
0

0
1990

2004

2005

2006

2006
Wakodo Co., Ltd.
excluded

Energy Consumption (Asahi Breweries, Ltd.)(1,000 GJ)

Efforts to Conserve Energy

The Asahi Breweries Group is actively promoting a
conversion to natural gas, which emits less CO2 and SOx
than heavy oil, and the introduction of cogeneration
systems that allow us to use energy more efficiently.
At Asahi Breweries, seven out of nine breweries havecompleted the conversion to natural gas and cogeneration
systems have been introduced at six breweries. In termsof the entire Group, 20 out of 33 factories are using natural
gas and LPG as their primary sources of fuel, and we plan
to maintain our fuel conversion drive.
The Asahi Breweries Group is also actively promoting
the installation of anaerobic wastewater processing
systems that contribute to energy conservation andreduced CO2 emissions. In contrast to aerobic wastewater
processing that requires oxygen, anaerobic wastewater
processing utilizes microorganisms that are active underconditions in which oxygen is not present and thus

150

126
262

5,000

(GJ/kl)3.20
2.55

10,000Introducing various systems that contribute tolimiting CO2 emissions(kg/kl)

162

5,193

2.46

2.40

2.33

2.26

6,829 6,441 6,260
5,793 5,468

3.0
Basic
unit

1.5
Total energy
consumption

0

0
1990

2002

2003

2004

2005

2006

Energy Consumption (All 12 Group manufacturing companies)
Basic
unit

(1,000 GJ)

10,000
9,000

5.83
8,357

8,000

(kg/one million yen)

5.68

5.69

5.58

7,911

8,045

7,697

7,000
Total energy
consumption

0

6
4
2
0

2004

2005

2006

2006
Wakodo Co., Ltd.
excludedrequires no electricity for producing pressurized air. Other
advantages include the collection and reuse of methanegas generated in the purification process as fuel.

9.1(1,000 m3)(m3/kl)25,0007.2

20,00019,16815,000

8

6.5

6.3

6.4

6.0

17,018 16,544 15,912

14,781

6

Basic unit

14,5004

10,0002
Water
consumption

5,000

0

0

Reducing consumption for the entire Group by
sharing know-how

Waste
Reduction

2002

2003

2004

2005

2006

(1,000 m3)(m3/one million yen)

22,00022,59715.8
21,99021,43820,000

16

15.3

15.2

Basic
unit

15

21,115

0

0
2004

2005

2006

2006
Wakodo Co., Ltd.
excluded

We are working toward 100% recycling acrossthe entire Group.

Asahi Breweries achieved 100% recycling of waste andby-products generated from the production process at all
breweries in 2002. In 2006, we accomplished this at
27 out of 33 Group factories. We are working on theremaining six factories toward our goal of achieving 100%
recycling at all our factories.
By-products generated from raw materials* account for
more than 80% of the waste, and we are endeavoring torecycle this waste within the Group by processing it into
cattle feed within our factories or into ingredients for foodand drugs at Group companies.

* By-products generated from raw materials: malt feed (produced
during the brewing process) and extra yeast (grown as beer is fermented).

Pursuit of Quality

14

Water
consumption

For Business Partners

15.8

24,000For Consumers

Water Consumption (All 12 Group manufacturing companies)

For Shareholders
and Investors

In 2006, Asahi Breweries sought measures for reducing
the amount of water collected and reusing water, andreduced per-unit water consumption by 6% comparedwith the previous year on a non-consolidated basis. The
Group as a whole reduced water consumption by 3% on
the year by sharing expertise and extending thesemeasures Group-wide.
We discharge wastewater into rivers and sewer systems
after purification using energy-saving anaerobic
wastewater processing as well as aerobic processing.
Breweries that discharge wastewater into rivers follow
voluntary standards that are more stringent that local
regulations.

1990

Basic Unit of Waste and By-Products(Five major Group manufacturing companies*)(1,000 tons)

400(kg/one million yen)

238

235

234

250
Basic unit

350

341

328

330

For Employees

Efforts to Reduce Water Consumption

Activities Promoting Moderate
and Responsible Drinking

Water Consumption (Asahi Breweries, Ltd.)

200
150

300

Waste andby-products

0

0
2004

2005

2006

* Asahi Breweries, Ltd., Asahi Soft Drinks Co., Ltd., The Nikka Whisky Distilling Co., Ltd.,
Asahi Food & Healthcare Co., Ltd., Asahi Beer Malt, Ltd.

CSR Report 200732

For Local Communities

Water constitutes the main raw material for themainstay products of the Asahi Breweries Group, andwe believe our efforts to preserve water resources are
an extremely important component of ourenvironmental activities. For this reason, we areworking to reduce water consumption in our
production process and to purify wastewater.

Priority Initiatives of the Asahi Breweries GroupWe are making efforts to conserve water resourcesthat constitute one of our raw materials.

Environmental
Conservation Activities

Water
Resource
Conservation

Priority Initiatives of the Asahi Breweries Group

Environmental Conservation Activities—Through the Group’s Production Operations
Reductionof theEnvironmental
Burden in
Logistics

We are endeavoring to reduce the environmental
burden associated with logistics.

The Asahi Breweries Group is making a Group-wide
effort to reduce CO2 emissions associatedwith logistics.

an effort to reduce CO2 emissions.
For new and small-lot products that require longdistance transportation because of limited production
sites, we are promoting a modal shift from trucks tocontainer transportation that generates less CO2
emissions.
The ratio of container transportation*3 in 2006 was
3.2%, which we intend to increase to 10.8% by 2010.

Reduction of CO2 Emissions
Endeavoring to reduce total travel distanceduring deliveries
Asahi Breweries is working to lower the frequency oftransfers between logistics sites and increase the ratio of
direct deliveries to reduce the total distanced traveled
during the deliveries of all alcoholic beverages.
In response to the amended Energy Conservation Law,we will also expand the scope of monitoring CO2
emissions in the logistics process from beer-type
beverages to all alcoholic beverages in an effort to raise
the efficiency of logistics on a broader scale. Our target isto reduce the CO2 emission unit (CO2 emission volume
generated by the transport of 1 kiloliter of product sales)
associated with the logistics by 4% in 2010 comparedwith 2006.
Following their realignment in January 2006, our Group
logistics companies have introduced environmental
management systems and the three logistics companies*1
obtained Eco Action 21*2 certification in December.
Asahi Logistics Co., Ltd., East Japan AB Cargo Co., Ltd., West Japan*1 AB
Cargo Co., Ltd.

*2 Eco Action 21: Environmental management system developed by theInstitute for Global Environmental Strategies. The Ministry of theEnvironment is encouraging certification.

Transportation Distance and CO2 Emissions(Scope: Transportation of beer-type beverages)(1,000 km)

120,000
100,000(1,000 tons)

74

72

103,562 98,920

62
85,77466

66

89,44889,669

80

40
Total
distance

0

2002

2003

2004

2005

2006

Promoting a modal shift
From the standpoint of ensuring freshness, we uphold ourbasic principle of production at the site of consumption forbeer-type beverages—our core products—and we areendeavoring to minimize transportation between sites in

33 CSR Report 2007

containers / total logistics volume of all long-distance transportation.

Other Environmental Efforts
Using Eco Bands and RFID to develop
model operations
Since 2006, Asahi Breweries has collaborated with Group
logistics company Asahi Logistics Co., Ltd. in an effort to
reduce our environmental burden by using Eco Bandsand RFID*4.
We will decrease packaging materials by switching toreusable Eco Bands to prevent the collapse of cargo andincorporating RFID to achieve greater efficiency in sortingby forklift. This is currently being undertaken in part of thetransportation route between Tokyo and Nagoya, and weplan to gradually expand transportation distances.
We obtained certification under theGreen Logistics Partnership Promotion
Program of the Ministry of Land,
Infrastructure and Transport and theMinistry of Economy, Trade andIndustry for this operation in 2006.

*4 RFID: Radio Frequency Identification

Eco Bandtechnology for communicating information
through tags containing ID data.

CO2
emissions

80,0000*3 Ratio of container transportation: logistics volume transported via

Use of tachograph and hybrid trucks
Our three Group logistics companies are striving toenhance fuel efficiency in logistics operations through thefollowing measures.
Tachogaphs have been installed in all large-scale trucks
to numerically evaluate eco-drive ratings, such as sudden
braking or acceleration, to raise driver awareness.
Two hybrid trucks have been adopted as small-scale
vehicles for short-distance transportation in urban areas inan aggressive effort to introduce energy-saving vehicles.

Award Ceremony for the Global
Environment AwardPursuit of Quality
For Business Partners

In addition, we are doing everything
we can to use materials with low
environmental burden for signposts
installed at shops that sell Taru Namabeer. Looking ahead, we will step up
our efforts to raise the ratio of sales
and promotional goods with low
environmental burden.
Sales promotional items
using thinned wood

For Employees

We are limiting waste generation at ourestablishments while also reducing andrecycling resources.

We have identified waste reduction as a major
management issue in our restaurant business. Following
the enactment of the Food Recycling Law in 2001, we
have been endeavoring to establish a PDCA cycle thatinvolves obtaining quantitative data; formulating actionplans for limiting, reusing and reducing waste; andevaluating the effects of our actions for further

Activities Promoting Moderate
and Responsible Drinking
For Consumers

We are seeking to expand the use of sales andpromotional goods that cause lessenvironmental burden.

Asahi Breweries has established in-house standards formaterials used in posters and various point-of-purchaseadvertisements and actively promotes the use of materials
that can be reused upon disposal (Eco Mark and Eco
Label certified products).
For example, we are developing wooden tags for sales
messages and table stands for introducing products thatutilize thinned wood produced by the Asahi Forest aroundShobara City, Hiroshima Prefecture.

Reduction of
the Environmental
Burden in the
Restaurant
Business

In February 2007, we wereawarded the Minister of theEnvironment Award of the
16th Global Environment
Award sponsored by the Fuji
Sankei Group.

improvement. We ask suppliers to deliver only thenecessary parts of vegetable and marine products usedas raw materials, and we eliminate excess waterfrom waste.
To date, 10 establishments operated by six Group
restaurant business companies have achieved 100%
waste recycling.

CSR Report 2007

For Local Communities

Reductionof theEnvironmental
Burden in Sales
Activities

Priority Initiatives of the Asahi Breweries Group

Since 2002, Asahi Breweries has been conducting joint
research on producing biomass ethanol derived fromsugarcanes with the National Agricultural Research Center
for Kyushu Okinawa Region. In January 2006, we beganverification tests encompassing sugarcane cultivation,
ethanol production and usage. These tests are being
conducted on Ie Island, northwest of the Okinawa
mainland, as part of the Ie Island Biomass Initiative.

Environmental
Conservation Activities

We will contribute to the creation of a resource
recycling society by promoting the biomass
ethanol project.

For Shareholders
and Investors

Reductionof theEnvironmental
BurdenThrough R&D

34

Priority Initiatives of the Asahi Breweries Group

Environmental Conservation Activities—Through the Group’s Production Operations
Reducing,
Reusing andRecycling (3R)
Containers andPackaging

We contribute to the formation of a recycling society
by promoting Reduce, Reuse and Recycle.

Containers and packaging are essential for protecting
content and ensuring safe and efficient transport, as
well as convenient carrying and consumption bycustomers. However, environmental burdens are
generated at each stage of extracting materials forcontainers and packaging, production, transportation,
disposal and recycling. Asahi Breweries seeks tocreate a recycling society primarily through thepromotion of the 3Rs—Reduce, Reuse, Recycle—andthe development of eco-friendly containers andpackaging.

ReduceEffectively utilizing limited resources
To effectively utilize limited resources, we endeavor to
reduce the weight of containers and packages while
ensuring content protection and safety.
Reducing the weight of cans
We are working on manufacturing lighter-weight cans forbeer-type beverages, and in 2006 we succeeded in
reducing aluminum volume per liter by 10.6% comparedwith 1990.
Over the past few years, we have increased the ratio ofrecyclable materials high in silicon content and managed
to produce stronger, thinner cans by reviewing the
distribution of thickness.
Reduction in Weight of Cans (Indexed against 1990 as 100)

100.0
89.4

90
80

0
1990

2006

Reducing the weight of the six-pack
We are seeking to make thesix-pack lighter by reducing thebasis weight (weight per 1m2).
In 2006, we reduced theweight of the six-packs for 350
milliliter and 500 milliliter cansby about 4%.

35 CSR Report 2007

Promoting environmentally soundreturnable bottles
Nearly 100% of returnable beer bottles are collected after
consumption and reused an average of 30 times. Whilethe use of returnable bottles has been falling recently due
to changing lifestyles, we will continue to promote
returnable bottles since their reuse reduces the overall
environmental burden.
We also collect
Taru Nama beer (kegbeer) containers
from restaurantclients and returnthem to ourbreweries for reuse.

Rate of Returnable Bottle Collection at Asahi Breweries
(%)

102.8

104

101.8

101.6

2005

2006

102
100
98

99.1

98.2

0
2002

2003

2004

RecycleContributing to the creation of a recycling society

(%)

100

Reuse

Containers and packaging used by Asahi Breweriesconsist primarily of aluminum cans, cardboard and PET
bottles, and we have achieved high recycling rates against
global standards.
To further contribute to the creation of a recycling society,
Asahi Breweries belongs to organizations for recycling
containers and packaging* and actively participates in theiractivities. We are also a member of the Beverage Industry
Environment Beautification Association, composed ofindustry groups of beverage makers. Over the years, wehave been discouraging the littering of containers andpackages and working to maintain a beautiful environment.

* Organizations for recycling containers and packaging: Japan

Aluminum Can Recycling Association, Glass Recycling Association, theCouncil for PET Bottle Recycling, Liaison Group for Alcoholic Beverage
PET Bottle Recycling, Liaison Group for Alcoholic Beverage Paper
Containers and Packaging Recycling.

Recycled PET bottles
Recycled PET bottles areused as handles on 4 literbottles of Daigoro, Donna
Mondai, Daichan and Kanoka.

Recycling Rate by Container Type
Aluminum
cans

(%)

82.8

83.1

82.0

83.3

91.7

90.7

90.3

Glass bottles

86.1

81.8

91.3

We use other-colored cullet*1 that generally have fewer
opportunities for recycling compared with non-colored orbrown cullet as Super Ecology Bottles*2 for the
Sankaboshizai-Mutenka-Yuki Wine (antioxidant-free,organic wine in red, white, sweet red) and SankaboshizaiMutenka-Monogatari Wine(red, white, sweet red) madein Japan by Sainte Neige
Wine Co., Ltd.
In addition, we use pagas,
a non-wood paper made offiber derived from pressedsugarcanes, as labels on
Sainte Neige’s SankaboshizaiSankaboshizai-Mutenka-Yuki Wine
Mutenka-Yuki Wine.

*2 Super Ecology Bottle: Bottle that consists of 90% cullet from othercolored bottles instead of non-colored or brown bottles.

PET bottles

62.3

61.0

65.6

Thinned wood for cartons

44.0

0
2001

2002

2003

2004

2005

Reusing and Recycling of Beer Bottles andAluminum Cans
Flow of beer bottles andaluminum cans

Flow ofbeer bottles

Aluminum cans

Flow ofaluminum cans

Separatedcollection

Masscollection

Wakodo Co., Ltd. obtained certification for the “Thinned
Wood Mark” by using materials made in Japan thatconsist of at least 10% thinned wood made in Japan for atleast 30% of its paper cartons.
By actively using Japanese materials, costs required formaintaining forests are returned to the mountains to makethem healthier. This activity complies with the National
Movement for Fostering Beautiful Forests and the spirit of
the Kizukai (“use wood”) movement being promoted by
the Forestry Agency, and contributes to creating a verdant
recycling society as well as to absorbing CO2, which isone of the causes of global warming.

For Business Partners

53.4

Curbsidecollection

For Shareholders
and Investors

50

Customer
Beer bottles
Remelted aluminum
ingot manufacturer

Bars and Restaurants
Retail collection

Aluminum rolling mills

Organic Kajitsu To Yasai

For Employees

Retailers

Pursuit of Quality

Cullet: Crushed glass bottles that are mainly recycled into glass bottle*1 materials.
For Consumers

100

Priority Initiatives of the Asahi Breweries Group

Promoting use of cullet and non-wood paper

Activities Promoting Moderate
and Responsible Drinking

Use of Eco-friendly Materials

Environmental
Conservation Activities

Example of Recycling
Recycled whisky caps
Materials taken from usedbarrels serve as caps on 660
milliliter bottles of Taketsuru
12-Year-Old Pure Malt.

(Beer bottles returned to the retailer
are then sent back to the breweries)

Asahi Breweries’ breweries

Aluminum canmanufacturer

For Local Communities

Wholesalers

CSR Report 200736

Priority Initiatives of the Asahi Breweries Group

Environmental Conservation Activities—With Various People

Environmental
Communication

We hold environmental education eventsand Environmental Culture Seminars for
local community residents.

Kazenoko Juku and Morinoko Juku

Asahi Breweries Environmental Culture Seminars

Environmental education events under the themeof global warming

Opportunities for people to deepen theirunderstanding of the natural environment

In October 2006, we held a “Kazenoko Juku” (Children of
the Wind School) program at the Aso Nishihara Wind Farm
power plant in Kumamoto Prefecture. Local elementary
school children learned about addressing global warmingfrom the perspective of wind power generation. In thesame month, a “Morinoko Juku” (Children of the Forest
School) event held at the
Asahi Forest (Shobara
Forest Office) in Hiroshima
Prefecture helped children
from the neighboring
community learn about
forest conservation andglobal warming.
Kazenoko Juku

Since autumn 2002,
Asahi Breweries has
been holding
Environmental Culture
Seminars by outside
lecturers under thetheme of “Connecting
People, the Future andthe Environment.”
Seminar participant experiences bicycle
As of the end of 2006,
power generation
29 seminars were held, attended by a cumulative total of
4,500 people.
These lectures approach environmental topics fromvarious angles, such as global warming, natural energy
and environmental destruction from the perspective of
their impact on animal life. We receive many questions
from participants during the seminars, which have become
a forum for discussing with the lecturers the connection
between the environment and people.
We hope to continue offering opportunities fordeepening people’s understanding of the naturalenvironment through familiar topics.

Environmental Event at Breweries
Factory events on solid waste disposal
Asahi Breweries’ breweries offer various communication
opportunities based on environmental themes. Each year
during summer vacation, our nine breweries hold Family
Factory Tours focused on environmental themes. In 2006,
about 18,000 visitors participated in tours that highlighted
the issue of solid waste disposal.

ForestConservation

We are expanding our efforts to nurture theresources that provide us with precious
water into a public endeavor.

Water Resource Conservation Activities
Promoting activities at all breweries incollaboration with local NPOs
To protect the invaluable forests that provide water, anessential ingredient for the production of beer andbeverages, Asahi Breweries works with local non-profit
organizations to undertake conservation activities atforests that serve as the sources of water for breweries ineach region.
These activities began at the Shikoku Brewery in 2004

37 CSR Report 2007

and spread to all nine breweries by 2006. Employees atthe breweries and Group companies and their families
have participated as volunteers in 13 events.
Starting next year, weintend to further expand
these activities throughcollaboration with otherenvironmental education
activities.
Water resource conservation activity

The Asahi Forest

For the Next

seminars at our head office and breweries, and otherenvironmental education events open to ourcustomers. We intend to continue these activities.

Pursuit of Quality
For Business Partners

Summer Camp Activities of the
Wakamusha Educational Seminar
Tour and practical classin the forest
With the help of local NPOs,
participants joined a tour toobserve differences between awell-preserved and ill-preserved
forest.
Observation of livingorganisms in the riverParticipants observed livingorganisms in the Kamo River in
Saijo City, which is renowned
for the quality of its water, toexperience the relationshipbetween the forest and the river.
Tour of an illegal waste dump
Participants visited an illegal
waste dumping site andlearned from local citizens who
have been coping with the
problem.
Asahi Breweries Factory Tour
Participants learned about themechanism of zero emission
and waste sorting and toured awastewater processing facility.

For Local Communities

For Employees

For Shareholders
and Investors

In 2006, Asahi Breweries held the Wakamusha (Young
Samurai) Educational Seminar for Protecting Japan’s
Environment, targeting high school students.
The seminar was intended to provide high school
students with an opportunity to directly experienceenvironmental issues, learn about solutions throughexperience-based education, company tours andsharing sessions, and acquire the ability to solve local
environmental problems by putting their ideas into
practice.
For the first-year seminar, we solicited public
participation from the four prefectures of Shikoku, andselected seven groups of 24 students from seven highschools based on a screening of their essays. The
groups participated in a camp held at the Asahi
Breweries’ Shikoku Brewery in Saijo City, Ehime
Prefecture. At the camp, students engaged in natureobservation classes in forested and river environs,learned about 100% waste recycling efforts andformulated environmental activity plans for theirrespective local communities based on what they hadlearned.
After the camp, they launched environmental
activities in their local communities based on the plans,
and reported on results and future goals during final
presentations that took place in December. The groupthat gave the best presentation won an ecological tour
to the World Heritage Yakushima Island, participated ina tour of the ancient yakusugi cypress and held an
exchange with high school students on the Island.
Apart from the Wakamusha Educational Seminar,
Asahi Breweries has been offering brewery eco tours
for elementary school children, environmental culture

For Consumers

We held the Wakamusha Educational Seminar for HighSchool Students to Promote Local Environmental Activities.

Activities Promoting Moderate
and Responsible Drinking

The Asahi Forest located in the expansive area aroundShobara City, Hiroshima Prefecture, occupies 2,165
hectares—the equivalent of 463 Tokyo Dome stadiums—
and absorbs approximately 12,000 tons of CO2 each year.
Through forest management emphasizing environmental
preservation, the Asahi Forest has been recognized as a

Priority Initiatives of the Asahi Breweries Group

Our Sound Forest Management Obtained
FSC Certification

resource worthy of conservation and designated as a
Water Resource Conservation Forest and a Prefectural
Nature Reserve. In 2001, we obtained FSC certification inrecognition of sound forest
management from the Forest
Stewardship Council, aninternational certification
institution for forest
management.

Environmental
Conservation Activities

Asahi Forest

CSR Report 200738

For Consumers
Comments from customers are utilized as assets forenhancing the quality of corporate management.

Consumer

Relations

Asahi Breweries believes that two-way communication, which includes
proactively listening to customer opinions and effectively responding
to requests, is essential to ensure genuine customer satisfaction.
To this end, we promptly respond to comments sent to theCustomer Relations Office, or through other channels, and then strive
to utilize these comments—accurately, respectfully and in a spirit ofgratitude—as valuable assets for improvement.

Message from the front line

We improve quality by promptly
and effectively responding to
problems that customers point
out, as well as specific requests.
We refer to problems pointed out by customers
or their requests as “Q net information”(commonly known as “Q information”) rather
than product complaints.
The “Q” of Q information stands for
Quality and Quick. When
responding to Q information, we
maintain the basic principle ofresponding promptly andJunjiro Ishikawa
Azumabashi Sales Office,Tokyo Branch
Asahi Breweries, Ltd.

A System for Incorporating Customer
Feedback into Our Business
Developing a system for sharing information
between management and all employees
Asahi Breweries deploys a system for entering, on a realtime basis, all customer inquiries, such as opinions andrequests, as well as problems such as dissatisfaction andproduct defects, into Q Net, an in-house, fully secured
database, allowing all employees, from management tosales staff, to share and make use of this data. In May
2005, we launched the “Customer Information Topics”
page on our corporate intranet, which analyzes comments
sent to us from various perspectives and provides every
employee with information in a timely manner. We havealso been submitting CS reports to management, which
provide details on how departments have responded to

39 CSR Report 2007

effectively before moving on to anything else.
When we receive Q information from theCustomer Relations Office or retailers, oursalespeople promptly visit the customer todirectly observe the situation while listening to
the details of product storage and handling,which are entered into Q Net, an in-house
database. Asahi Breweries uses this system toimprove administrative services and otherfunctions by unifying the management in theentire process, from receiving Q information andthe history of responses to the customer up to
the solution of the problem and sharing the caselearnings with related departments.
Some customers I have visited even thanked
me for coming all the way to see them. In
addition, receiving more accurate Q information
can improve our products. I am handling Q
information with the belief that salespeople also
play an essential role in quality improvement.

customer comments. To protect customer privacy,
personal information and company names are deleted
from these reports.

Response to Reported Problems
about Our Products
Utilizing this data as valuable information for
quality improvement
Asahi Breweries is actively improving our system forreceiving and responding to reported problems, with thebelief that the information provided to us by customers
regarding dissatisfaction with products or product defects
is valuable for improving quality.
We respond to customer comments under three basic
principles—properly investigate, respectfully report andpromptly respon—in order to meet customer expectations.

Customer
Confirmation/visit
Reportedproblems

Customer
Relations OfficeCommunication
Input
Reference/input

Database

Reference/input

Sales location (branch/sub-branch)(1) Confirm with customer by phone(2) Visit, receive product in question,
provide replacement, confirm facts(3) Deliver product to manufacturing
plant (or laboratory/supplier),
request review(4) Report results to customer(5) Enter process and results into
database

For Consumers

Reportedproblems

Product in Reporting
question

Manufacturing plant(or laboratory/supplier)(1) Examine/analyze product(2) Communicate results to sales
location(3) Enter results into database

Comments Received and Example of Product Improvements

We improve our products based on anunderstanding of customer comments.

Problems 10.6%
Suggestions 0.6%
Requests 5.8%
Contact 7.1%
Comments/
Opinions 9.8%

Total
33,151Inquiries
89.4%
Reference 66.1%

to determine a more effective response.
We are also working on product improvements
based on comments we have received.

Example of Product Improvements (2006)
Year-round sales of “Feel the freshness” packDistribution of the “Feel the freshness” pack ofAsahi Super Dry that pursues exceptional
freshness (sold in limited quantities; in principle
shipped from the brewery
within three days after
manufacturing) was changed
to year-round sales (once amonth*) in response tocustomers who want to buy
the product every month.

* Twice a month during summer 2007

For Employees

Comments from Customers Received
at the Customer Relations Office (2006)

FOCUS

For Local Communities

At Asahi Breweries, we meticulously categorize
customer comments into inquiries, includingcomments/opinions, requests, suggestions,questions and contacts, and reported problems,such as dissatisfaction and complaints. We thenstrive to discern the concrete circumstances,
impact and trends related to the report in an effort

Activities Promoting Moderate
and Responsible Drinking

Flow of Response to Reported Problems

For Business Partners

In addition, our Q Net Information Response Policy thatguides how we handle reported problems lays down theprinciple of responding promptly and effectively before
moving on to anything else. Based on these policies, our
responses follow these procedures:
1. Receiving information
We receive Q information through the Customer Relations
Office, which was set up as a contact point for customers
across Japan, or through sales locations, including
branches and sub-branches. Information sent to theCustomer Relations Office is promptly communicated to
the related sales location.
2. Salesperson visits the customer
A salesperson visits the customer who provided theinformation, listens to the details of the situation andstatus of the defective product directly from the customer,
provides a replacement and receives the product inquestion for further review.
3. Investigation and analysis
The product in question is sent to the manufacturing plant(or laboratory/supplier) for prompt review and analysis, andthe results are reported to the customer.

Priority Initiatives of the Asahi Breweries Group• Response to customer suggestions• Example of product improvements

Environmental
Conservation Activities• Activities of the Customer Relations Office• Breakdown of comments received

Pursuit of Quality

Visit our Web site at: http://www.asahibeer.co.jp/csr/ (in Japanese)

For Shareholders
and Investors

WEB“Feel the freshness” pack

CSR Report 200740

For Business Partners
Asahi Breweries Group promotes programs that ensure fair andequitable business practices and share prosperity withour business partners.
Business
partners
Relations

Cooperation is essential for fulfilling our mission to provide the bestproducts and services. Therefore, we partner with suppliers who
consistently provide safe, high-quality raw materials and resources, aswell as with the distributors, retailers and restaurants that deliver our
products to consumers.
Asahi Breweries promotes fair and equitable business practices andshares prosperity with our business partners through close dialogue.

Message from the front line

We are building sustainable
partnerships by working withpartner carriers to reduce ourenvironmental burden.
The persistently high price of diesel oil is creatinga difficult situation for logistics companies likeours. In addition, a growing awareness of theenvironment has made it important to reduce
CO2 and black smoke emissions fromdelivery trucks. A major issue forresponding to this situation is to findways to efficiently use delivery
trucks in terms of cargovolume and transportation

Yuichiro Yamamura
West Japan Vehicle
Dispatch Center
Asahi Logistics Co., Ltd.

Fair and Equitable Business Practices
Based on Our Basic Purchasing Policy
Establishing strong relationships of trust with our
suppliers by increasing transparency
In line with our corporate philosophy to provide the bestproducts and services, Asahi Breweries established the
Basic Purchasing Policy in August 2003, which requires
purchasing decisions to comply with all relevant laws andregulations, while also calling for fair and equitable
practices in the selection of products and business
partners in Japan and overseas.
The policy encompasses four major components. Under
Fairness and Justice, the policy promises to offer
opportunities for participation, regardless of company
location, based on an evaluation of quality, cost, delivery
time constraints, corporate vision and technical skills.

41 CSR Report 2007

area, factors that change daily.
Asahi Logistics Co., Ltd. is working with partner
carriers on various initiatives to address theseissues. For example, we are trying to maximize
overall operational efficiency and reduce thenumber of vehicles required through mutual
accommodations with trucks by sharing operationand loading information. Today, about 10% of ourdelivery trucks are operated on this arrangement.
In addition, we promote cost reduction by making
available filling stations owned by Asahi Logistics
Co., Ltd. to partner carriers, thereby effectively
expanding the purchasing group.
In these ways, issues that are difficult forindividual companies to solve can be addressed
through cooperation. We hope to continue ourefforts to reduce our environmental burden incooperation with partner carriers while building
partnerships that encourage growth for all parties.

Under Confidentiality, the policy calls for the protection ofbusiness partner information. The third component,
Procurement, refers to prohibiting conflicts of interest
rewards, and purchasing incentives, with a firm
commitment to ethical practices. The fourth component,
Consideration of Responsibilities to the Environment andSociety, promotes the realization of a sustainable society.
Asahi Breweries publicly discloses its purchasing policy,
along with detailed business standards and entry sheets,on its Procurement Web site.

Asahi Breweries Procurement Web Site
http://www.asahibeer.co.jp/english/suppliers/index.html

With the goal of sharing prosperity with our distributors,
Asahi Breweries Group companies, that interact face-toface with distributors, retailers and restaurants, implementa variety of activities to stimulate market growth and fortify
the management foundation of wholesalers.

Asahi Distribution ResearchInstitute, Ltd.
Provides timely industry
information to special dealers andconducts support activities tostrengthen management.

Follow-up to the Questionnaire Survey on
Corporate Social Responsibilities

We request feedback based on survey results.
Creating a sustainable society requires effective, ongoing CSR activities
throughout the supply chain.
Therefore, Asahi Breweries requires current and future suppliers tocomplete a Questionnaire on Corporate Social Responsibilities and a
Questionnaire on the Environment. When selecting business partners, wetake into account the extent to which they consider the environment andsocial responsibility.
In 2006, we began to request feedback based on the information we
obtained through the questionnaires in our supplier quality audits to improve
the awareness of all parties.

Activities Promoting Moderate
and Responsible Drinking
For Consumers

Full House Co., Ltd.
Provides advice to restaurants andconducts support activities suchas seminars and restaurant market
surveys.

For Business Partners

Supporting distributors in their management andbusiness activities

East Japan Asahi Draft Beer
Service, Ltd. / West Japan Asahi
Draft Beer Service, Ltd.
Promotes quality management ofkeg draft beer at restaurants andrecommends drink menus in linewith customer taste preferences.

FOCUS

For Employees

Shared Prosperity with Distributors

Asahi Field Marketing Ltd.
Supports sales section design andsales promotions based on
storefront marketing withsupermarkets, discount stores andother mass retailers.

For Local Communities

Asahi Breweries provides the Procurement Clean Lineservice, a reporting system that current and futurebusiness partners can confidently use without fear of
being put at a disadvantage in situations where employeesor the procurement division act in violation of the Basic
Purchasing Policy or fail to comply with legal requirements
or social ethics.
In these situations, partners can contact Asahi Breweries
at any time through such channels as its Web sites. Issues
are promptly investigated, verified and addressed by anobjective, third-party organization associated with the
Corporate Ethics Committee, operating independently of
the procurement division. No incidents were presented to
the Procurement Clean Line in 2006.

• Initiatives Undertaken by
Asahi Breweries Group Companies

For Shareholders
and Investors

Reporting system is set up to protect theinterests of our business partners

Priority Initiatives of the Asahi Breweries Group• Relationship with suppliers
Reference Web site: “Procurement Web site” http://www.asahibeer.co.jp/english/suppliers/index.html• Relationship with business partners
Reference Web site: “Keg draft beer, it’s tasty!” http://www.asahibeer.co.jp/enjoy/umadaru/index.html (in Japanese)

Pursuit of Quality

Visit our Web site at: http://www.asahibeer.co.jp/csr/ (in Japanese)

Environmental
Conservation Activities

WEB

Supplier quality audit

CSR Report 200742

For Shareholders and Investors
The Asahi Breweries Group pursues solid revenue growth andprovides value to shareholders while practicing fair, expeditious andtimely information disclosure.
Shareholders
andInvestors
Relations

A corporation’s fundamental responsibility is to generate solid revenues
and return satisfactory value to shareholders. To fulfill this responsibility,
a corporation must actively communicate with shareholders andinvestors and incorporate their feedback into business management.
Asahi Breweries ensures detailed information disclosure andcommunication to continue upholding the expectations and trust of ourshareholders and investors in Japan and overseas.

Message from the front line

We seek to further improveshareholder satisfaction byenriching information disclosure
through dialogue withshareholders and investors.
The environment surrounding corporate
accounting is undergoing dramatic change withthe scheduled introduction of quarterly
disclosure and an internal control report system,in addition to a reformed accounting system andthe soon-to-be-enforced New Company Law. It
is natural for shareholders and investors to wantto grasp the current
status of a company
as quickly andaccurately as
possible in this age of
rapid change.
Therefore, Asahi
Ceremony for the

Breweries actively worked to release earnings
announcements earlier and moved theannouncement dates forward by 14 days in2006, compared with 2004. In addition, we took
steps toward more meticulous disclosure byincluding a detailed analysis of the factors forrises and falls in profit as support documentationin addition to a brief announcement. We also
provide shareholders with a variety of informationin our published quarterly reports and on thecorporate Web site.
In recognition of these active
efforts to disclose information, theTokyo Stock Exchange selected us
for the 12th Disclosure Award in2006. We will continue to pursue
faster and richer information
disclosure.

Yoshiaki Suzuki
Finance Department,
Asahi Breweries, Ltd.

12th Disclosure Award

Enhanced Information Disclosure
Shareholders’ meeting and investor relations
activities
Asahi Breweries’ basic policy for disclosing information toshareholders and investors is to do so in accordance with
the Timely Disclosure Requirements of the Tokyo Stock
Exchange, on which the company is listed. Informationthat is not subject to the Timely Disclosure Requirements
but deemed to be relevant to investment decisions will be
disclosed voluntarily and accurately.
• Toward Open Shareholders’ Meetings
To encourage as many shareholders as possible to attend,
the company moved the venue for the 2004 Shareholders’

43 CSR Report 2007

Meeting from the Asahi Breweries headquarters, the site ofprevious meetings, to a hotel in central Tokyo with better
accessibility and a larger space. As a result, the number ofshareholders who attended in 2007 was 1,990.
Shareholders who are not able to attend annual
meetings can exercise their voting rights via the Internet.
Following the 2007 Shareholders’ Meeting, we held aproduct exhibition that welcomed a large number ofshareholders. The event
included an exhibition of
Asahi Super Dry, marking
the 20th anniversary of its
launch, and showcased
the products of Asahi
Breweries and other
Shareholders’ MeetingGroup companies.

Visit our Web site at: http://www.asahibeer.co.jp/csr/ (in Japanese)

Evaluations by External Review
Organizations
Highly valued stance and method of
information disclosure

For Consumers

The IR (Investor Relations) activities of Asahi Breweries
were awarded the Excellent IR Activity Award for fiscal
2004 by the Japan Investor Relations Association and the12th Disclosure Award from the Tokyo Stock Exchange in2006. Since 2003, the company has been selected as
No.1 in the food sector of the Awards for Excellence inCorporate Disclosure organized by the Security Analysts
Association of Japan for the fourth consecutive year.
In addition, our investor information site was chosen for
the Award for Excellence in Internet Investor Relations in2005 (awarded for seven consecutive years from 2001 to2007) and Internet IR Best Company Award (food section,
awarded two consecutive years in 2004 and 2005) by
Daiwa Investor Relations Co., Ltd.

For Business Partners• Publication of Quarterly Reports for Shareholders
Asahi Breweries publishes a report for
its shareholders titled, “Asahi Super
Report.” To announce financial andother corporate information in a more
timely manner and maintain closer
communication with shareholders, webegan to publish the report in 2005 on Asahi Super Report
a quarterly basis instead of theprevious semiannual cycle.
• Meetings Following the Release of Financial Results
and Road Shows for Institutional Investors
Meetings are held for securities analysts and institutional
investors in Japan following the announcements of interim
and fiscal year-end results. The president, financial officers
and other directors attend these meetings to report on
business results, positive and negative factors affecting
earnings, and future management strategy and actions.
For individual investors overseas, the company issues
an annual report in English, and the latest results areposted on our English Web site. The president andfinancial officers also explain the medium- and long-term
strategies of the Group at “road show” meetings held
every year in the United States and Europe.

Priority Initiatives of the Asahi Breweries Group

Reference Web site: “Asahi Supporter Community”, reference site forindividual investors http://www.asahibeer.co.jp/ir/supporter (in Japanese)

Activities Promoting Moderate
and Responsible Drinking

http://www.asahibeer.co.jp/english/ir/index.html

Pursuit of Quality

Reference Web site: “Investor Relations”

Environmental
Conservation Activities• Return to shareholders• Information disclosure and communication• Evaluations by external review organizations

Increased Returns to Shareholders

environmental fund as a contribution to forest
protection and greening activities.
To maximize investor satisfaction, we areextending our best efforts to respond to requests
from shareholders. In 2007, in response to therequest for delivering shareholders’ courtesy
products before the long holiday season that starts
at the end of April, we delivered the products in
mid to late April.

For Employees

In the Third Medium-Term Management Planannounced in February 2007, Asahi Breweries
stipulated that it would continue comprehensive
returns to its shareholders based on sustainable
and stable dividends. Under this policy, we
increased dividends by 2 yen for the third
consecutive year to 19 yen per share in 2006.
To express our appreciation for shareholder
support, request continued support and improveunderstanding of the company, Asahi Breweries
launched a shareholders’ courtesy program in
2003. Under this program, shareholders can selecta courtesy gift, such as specially brewed beer or agift package containing products of Group
companies. Shareholders can also choose, in lieu
of receiving a gift, to have the company make adonation of comparable value to the Asahi
Breweries’ Mizu no Wakusei (Water Planet)

FOCUS

For Local Communities

We provide stable dividends andshareholders’ courtesy products.

For Shareholders
and Investors

WEB

Beer packaged exclusively for shareholders

CSR Report 200744

For Employees
We are committed to fair performance evaluation and tocreating a pleasant work environment while respecting
workforce diversity and values.
Asahi Breweries is committed to eliminating all forms of discrimination on
the basis of race, nationality, creed, gender, or any factor unrelated toactual performance. Our recruitment, assignment, and performance
evaluation procedures respect fundamental human rights, and we remaincommitted to creating an ideal work environment for employees. This
includes implementing education guidelines that encourage independent
personal development, self-development programs, creating an
employee health management system, and nurturing a pleasant
workplace for women and physically challenged employees as well.

Employees

Relations

Message from the front line

We have introduced the Occupational
Safety & Health Management System
and a reinstatement system to createa secure workplace.
Embodying the spirit of a company that treasurespeople, the Asahi Breweries Group is developinga variety of systems for allowing employees towork vigorously with a sense of security.
Individual plants have been introducing the
Occupational Safety & Health Management
System (OSHMS) since 2006 and working to
improve their safety levels.
In specific terms, we have introduced the Risk
Assessment method as the foundation for ouractivities. This method identifies potential risks
involving equipment and operations and enables
us to prioritize and implement measures to

Employment Situations
Eliminated discrimination on the basis ofnationality, age or gender
Asahi Breweries has established its Group Basic
Personnel Policies and is committed to creating a pleasantNumber of Employees by Employment Type(Consolidated)

15,00015,07014,654

15,74914,87815,280
Permanent
employees

10,000
5,000

3,627

4,089

4,811

Contract
employees andothers

4,386

3,878

0
2002

45 CSR Report 2007

2003

2004

2005

2006

prevent disasters at an early stage.
In addition, we introduced a reinstatement
system in 2006 to support employees who return
to work after long absences or leaves due tosickness or injury. This system establishes a given
period when work is combined with rehabilitation
support based on the opinions or advice ofdoctors when employees return to work after an
extended leave of absence due to a lifestyledisease or mental illness. The
introduction of this system allows for aphased reinstatement tailored to theindividual state of recovery from adisease or medical condition.

Nobuyuki Goto
General Affairs Department,
Suita Brewery
Asahi Breweries, Ltd.

work environment that allows our employees to work
vigorously while continually fostering their abilities. Basedon our basic policies, we are working to ensure fair
employment without any form of discrimination on thebasis of nationality, disability, age or gender.
• Employment of Foreign Nationals
When hiring new graduates, Asahi Breweries employs andevaluates applicants regardless of their nationality. We also
work to recruit and retain a wide variety of mid-career
workers based on evaluations of their expertise as well as
their knowledge of technologies or language skills.
When working visas are required prior to employment,
the company completes the required work contract andreference papers and provides details in the required format
regarding why the person is being employed. The company
strives through these efforts to create a comfortable work
environment for non-Japanese employees.
Furthermore, after joining the company, the job

For Consumers

Fair Personnel Evaluation and
Performance Rating

For Business Partners

Asahi Breweries’ performance and merit review system forpersonnel evaluation is designed to energize individual
staff and worksites. At the heart of the system is an
employee interview, which is conducted within theframework of the employee’s own initiative.
For employee transfers and deployment, for example,
the Personnel Department at the company’s head officeand other worksites regularly review the local needs ofeach worksite, individual circumstances, and thepersonnel evaluations of each employee.
Flow of Personnel Evaluation

Primary
evaluation

Based on personnel evaluation standards madeavailable to all employees, managers conduct
interviews with each employee every six months
to review performance, identify areas to review
and consider, and ultimately come to a joint
assessment of the employee’s work.

Secondaryevaluation

The overall director of the worksite or anothermanager at a comparable level reviews theevaluation and makes a final determination toprevent unfair assessments due to variations inevaluation standards.

Multilateralevaluation

The R&D department has adopted multilateralevaluations that incorporate the perspectives ofcolleagues, assistants and subordinates as wellas supervisors.

Evaluation
feedback

Supervisors thoroughly review with employees
the results of these personnel evaluations, aswell as their own comments, so that employees
can fully understand and agree with the results.

Sheltered parking spaces for employees in wheelchairs is provided at the entrance.

Change in the Employment Rate of the Physically Challenged(Non-consolidated)
(%)

2.5

2.12

2.09

2.01

2.08

Activities Promoting Moderate
and Responsible Drinking• Reemployment Situations
Asahi Breweries reemploys some of its workers who havereached the mandatory retirement age of 60 when their
desire to keep working aligns with corporate needs so thatthey can continue to utilize their rich experience and highlevel skills.
In 2005, we developed a continued employment system
to more aggressively promote reemployment of older
workers. Reemployment, based on the new system,
started in April 2006.

For Employees

categories of these foreign employees are expanded
beyond the international divisions that were formerly theirmain assignment to include other locations.
• Employment of the Physically Challenged
Asahi Breweries’ goal is for physically challenged
employees to represent 2.0% of our workforce.
In accordance with the employment policies preparedby the Personnel Department, we frequently contact
schools and job centers serving the physically challenged
in our recruitment efforts. The recruitment process allows
applicants to take alternative forms of testing to eliminate
any disadvantage due to their disabilities. Asahi Soft
Drinks Co., Ltd. follows a similar policy in the hiring of thephysically challenged.
Asahi Breweries assists the intellectually challenged tocontinue working over the long term by keeping in touchwith their old schools and job centers to ensure that their
specific worksites and jobs are appropriate. We are also
striving to create new workplaces based on individual
aptitude. Furthermore, we are making efforts to increase
certified vocational life consultants for the physicallychallenged at our worksites and to install handrails andaccess ramps to establish a comfortable and pleasantworking environment.
Access to personal information regarding employee
disabilities and illnesses is only available to supervisory
employees who need such information, such as immediate
supervisors, under conditions of strict confidentiality.

Priority Initiatives of the Asahi Breweries Group• Personnel evaluation and performance rating• Training and education programs• Creating a pleasant workplace
Efforts for occupational safety & health/
Efforts for employees’ health management, maternity leave,
childcare and other family care support,
raising awareness of human rights,
other health and welfare systems

Environmental
Conservation Activities• Group basic personnel policies• Equality and fairness in employment
Employment situation/promotion of women,
employment of foreign nationals,
employment of the physically challenged,
reemployment situations, recruitment
situations, relations with the labor union

Pursuit of Quality

Visit our Web site at: http://www.asahibeer.co.jp/csr/ (in Japanese)

For Shareholders
and Investors

WEB

2.01
For Local Communities

2.0
1.5
1.0
0.5
0
2002

2003

2004

2005

2006

CSR Report 200746

Career Design Support

Training and Education Programs

System for every employee to declare hisor her ambitions

Variety of programs that correspond with
employees’ willingness to grow

Asahi Breweries has established a system for employees
to declare their ambitions through a Career Design Sheetthat helps them formulate long-term career plans.
Employees are asked to provide comments that describe
their desired line of work and workplace as well as the typeof work they want to be doing in five years. The sheet issubmitted to the Personnel
Department after an interview
with their supervisors andtaken into consideration inpersonnel transfer decisions
upon coordination with related
departments.

Asahi Breweries encourages the development of
employees who are capable of independently seeking theirown personal development. Various training programs areoffered to correspond with employees’ willingness to grow.
• Major Training Programs
We have begun offering self-study programs in which
employees freely select a curriculum that best suits themfrom more than 300 options. The Asahi Business College
helps business leaders acquire world-class knowledge
and analytical skills through training sessions based on an
MBA-level curriculum.

Supporting career development of women
Asahi Breweries is aggressively recruiting female
employees and appointing them as appropriate to
managerial positions. The number of female managers isincreasing each year.
The company is also working to create a pleasantworking environment for women by expanding thematernity leave and childcare leave systems.
Number of Female Managers (Non-consolidated)

30

30

23
20

16
9

0
2002

2003

2004

2005

2006

Use of the Childcare Leave System
40

33

30

21

30

24

20
10

Major Training and Education Programs
Selective programs

Asahi Business Leader Development School

Rank-based programs

Introductory training for new recruits, training for
newly appointed producers (managers)

Self-study programs

Selective training, correspondence courses ande-learning

Professional training
programs

System for supporting employees to obtainspecial qualifications, Asahi Business College

Department-based
programs

Department training sessions,workplace training

38

40

10

Selective training

21

24

33

28

Women
Men

0

2
2003

47 CSR Report 2007

2004

2005

2006

Maternity Leave, Childcare and Other Family Care

Introducing and operating support systems
that exceed legal requirements

Pursuit of Quality
Activities Promoting Moderate
and Responsible Drinking
For Consumers

Management personnel training seminars are conductedunder the guidance of visiting lecturers to raise safety
awareness across the entire Asahi Breweries Group. In
addition, information exchange sessions are regularly held
to share knowledge and expertise.
In 2006, we held workshops for introducing risk
assessment methods across the entire Group as well as
voluntary inspection methods. We also implemented
safety management workshops for the new member
companies of the Group.

The company supports the mental well-being of
employees as well as their physical health with the goal ofearly detection and prevention of stress. We implement
various measures, including the assignment of internal
health practitioners and nurses.
• Contracts with Industrial Medicine Specialists
The company has contracts with specialists in psychiatry
to provide mental health examinations for each employee.
• Manager Training
We provide training to all managers on how to deal with
their subordinates through case-study-based discussions
and the advice of specialists.
• Mental Health Counseling
In September 2005, our corporate health insurance
introduced counseling by a certified clinical psychologist
for employees and family members. User privacy isstrictly protected.

For Business Partners

Working to raise safety awareness across theentire group

Priority Initiatives of the Asahi Breweries Group

Asahi Breweries convenes an Occupational Safety and
Health Committee at each worksite as a monthly
discussion forum for representatives of labor andmanagement.
In 2006, we prepared to phase in the introduction of the
OSHMS focusing on the eradication and reduction ofpotential risks through risk assessment.

Enhancing mental health care practiceEnvironmental
Conservation Activities

Working to eradicate potential risks to
occupational safety

Employee Health Management

For Shareholders
and Investors

Occupational Safety and Health

FOCUS

For Employees

Asahi Breweries provides employees with support systems at levels that exceed legal mandates under its
basic policy for providing employees with as much support as possible so they can continue to actively work
while facing childbirth, childcare or other family care needs.
Major Systems for Maternity Leave, Childcare and Other Family Care Support

Maternity leave system

Employees are allowed to take leaves of absence of up to 14 weeks for pre- and postnatal care.

Childcare leave system

Employees are allowed to take leave when they have children under the age of 2 years. Male employees also
can use this system.

Exemption from full working
hours for childcare

Employees who provide care for elementary school-aged children in third grade or below, or other children underschool age are allowed to start or leave work one hour earlier or later than usual.

Exemption from full working
hours for family members

Employees who provide care for family members are eligible under this system to start or leave work two hours
earlier or later than usual

Family care leave system

Employees who provide care for relatives are allowed to take leaves of absence of up to one year within a twoyear period, as well as the right to start or leave work two hours earlier or later than usual.

CSR Report 2007

For Local Communities

Support Systems

48

For Local Communities
We intend to help create a prosperous society by contributing toand supporting artistic and cultural activities.

Local
Communities

Relations

The guiding principle behind every activity of Asahi Breweries is to promotehealthy living and the enrichment of society worldwide. Therefore, as a
responsible corporate citizen, we actively participate in cultural andcommunity activities that are not directly associated with our food-related
business operations.
We are continuously promoting diverse projects including support for areas
stricken by disaster, for employees engaged in volunteer activities they havechosen, and for artistic and cultural activities rooted in local communities.

Message from the front line

We have set up arrangementswith local governments near ourbusiness facilities to protect
community safety and security.
Minami-Ashigara City, Kanagawa Prefecture, thelocation of the Asahi Breweries Kanagawa Plant,lies in an area that is vulnerable to wide-scaledisasters such as the Tokai and Kanto offshore
earthquakes. As a precautionary measure, Asahi
Breweries and Asahi Soft Drinks Co., Ltd. haveestablished an arrangement with Minami-Ashigara
City to provide potable water and food andnecessities in the event such disasters occur.
Under this arrangement, if the public water
utility is damaged by a major disaster, the Asahi
Breweries Kanagawa Plant will supply about
1,200 tons of water stored for beer brewing andAsahi Soft Drinks Co., Ltd. will provide about
1.8 million plastic bottles of soft drinks.
At the request of the mayor of Minami-Ashigara
City, who believes that timely rescue andContributing to Society
Promoting contribution activities and support
for employee volunteer activities
Asahi Breweries has developed a variety of volunteer
programs that respect employees’ own choices, including
the KIDS Project, a project for visiting and holding
recreational events for children who live in welfare facilities;
One Beer Club, for making donations in increments of
200 yen from the salaries of participating employees; andclean-ups around business sites.
The company is also committed to more indirect
support, such as providing volunteer information on its

49 CSR Report 2007

restoration during disasters requires mutual
cooperation with other municipalities, Kanagawa
Plant also facilitated conversations between
Minami-Ashigara City and Moriya City in Ibaraki
Prefecture resulting in the “Agreement on Mutual
Assistance in a Time of Disaster.” The Asahi
Breweries Ibaraki Plant is located in Moriya City.
Because the two plants are situated on opposite
sides of the Kanto region, it is highly unlikely thatboth would be damaged, thereby increasing theadvantages of this cooperative agreement. The
two plants have established infrastructural
support such as physical distribution andpersonnel exchanges. Based on these resources,
we intend to support recovery efforts
at the request of the cities in theevent of disaster.
We continue to work as a factorythat lives with the people of thecommunity through our diverse
activities.

Mitsutaka Nitta
General Affairs Department,
Suita Brewery
Asahi Breweries, Ltd.

intranet, a volunteer leave system and the Eco Mileage
System, under which points for volunteer activities areaccumulated with the equivalent amount donated to localorganizations from the related business unit.
In addition, we donate to community activities, theenvironment, art and culture, and science within reasonable
parameters from the perspective of social ethics and legal
compliance.
In 2006, we madedonations to disaster areas
including the provision of
supplies to victims of theCentral Java earthquake inIndonesia and to Okaya in
KIDS Project
Nagano Prefecture, which
was flooded by torrential rains.

Assistance for NPOs and NGOs

Exchange with Citizens Around Our Business Facilities

Lobby Concerts are held in many parts of the nation

FOCUS

In addition, our beer breweries around thecountry host fun events, including special tours andthe Eco Exploration Party, toward establishing a
positive reputation for the plants among the citizensof the community. We continue to distribute a
variety of information, including our efforts related
to the environment and the culture of brewing.

For Employees

Since 1990, Asahi Breweries has been holding
Lobby Concerts at the Asahi Breweries
headquarters based on the following principles:(1) providing enjoyment to local citizens,(2) encouraging employee involvement in planningand management, and (3) introducing music not
well known to the public.
The concerts have been introducing diversemusic, regardless of genre, in an effort to invite to
the stage young world-class musicians who are
not yet widely known.
In 1992, we also began holding concerts at ourplants and business facilities throughout the nation,bringing the total number of concerts to 186 (as ofthe end of December 2006). We intend to continue
these concerts with the strong support ofaudiences across the nation.

For Consumers

A scene from the 4th National Art NPO
Forum in Beppu

For Business Partners

We support creative artistic and cultural activities rooted in
the community.
Since the establishment of the Corporate Culture
Department (currently the Social & Environmental
Management Department) in 1990, our artistic and culturalactivities have become more organized and well planned.
Our basic concept is defined by three parts: the future(creating the culture of tomorrow); citizens (bridging
citizens and the arts); and local communities (recovering
local resourcefulness through unique activities that are
deeply rooted in the local community).
Current activities include the Asahi Arts Festival, theAsahi Eco Art Series, Lobby Concerts, the Asahi Art
Collaboration Exhibition, Food Culture Seminars and the
management of Asahi Arts Square, which opened as a
new center for increasing exposure to cultural expressions.

For Local Communities

Supporting creative artistic and culturalactivities rooted in the community

Asahi Breweries has been actively supporting the activities
of Arts NPO Link, a specified non-profit corporation thatstarted activities in October 2004 and formally changed its
legal status in January 2004.
The objectives of Arts NPOs Link are to connect arts
NPOs nationwide, address common issues, and develop
receptive environments for NPO activities. Arts NPO Link
also creates opportunities for art NPOs and organizations
from other sectors to meet by organizing the annual
National Art NPO Forum and introducing the activities androles of diverse art NPOs at home and abroad.
Through the support of
the Arts NPOs Link, Asahi
Breweries contributes tocreating a receptive
environment in Japan for
art NPOs and promotes
active citizen participationin the arts.

For Shareholders
and Investors

Supporting the Development ofArtistic and Cultural Activities

Activities Promoting Moderate
and Responsible Drinking

Priority Initiatives of the Asahi Breweries Group• Contributing to society• Our approach to social and cultural activities
One Beer Club, KIDS project, Eco Mileage System,• Supporting the development of artistic andenvironment beautification activities, Artbility, othercultural activities: Asahi Arts Square, Asahi Arts
contributions to society, social contribution data
Festival, Lobby Concerts, MÉCÉNAT Calendar of theMonth, The Asahi Beer Arts Foundation, Asahi
Breweries Foundation, etc.
Reference Web site: “Asahi Beer Oyamazaki Villa Museum” http://www.asahibeer-oyamazaki.com/ (in Japanese)

Pursuit of Quality

Visit our Web site at: http://www.asahibeer.co.jp/csr/ (in Japanese)

Environmental
Conservation Activities

WEB

Lobby Concert

CSR Report 200750

Corporate Governance
The Asahi Breweries Group is strengthening its corporate
governance to ensure consistent and ongoing fulfillment of its
corporate social responsibility.

Basic Concept
Positioning stronger corporate governance asa priority management issue
The Asahi Breweries Group considers all our stakeholders
as customers, including shareholders, investors, suppliers,
employees and local communities as well as theconsumers of our products.
In order to conduct business activities that satisfy
customers while quickly responding to a dramaticallychanging business environment, we have positioned theenhancement of our Corporate Governance as a priority
management issue through which we intend to strengthen
consolidated management and further reinforce the trust
society has placed in us while enhancing corporate social
responsibility and transparency.

Corporate Governance Structure
Shareholders’ Meeting

Appointment/Dismissal

Appointment/Dismissal

Nomination
Committee

Board of Directors

Board of Auditors
Audit
Coordination• Inside Directors• Outside Directors• Chairman of the Board• President• Inside Directors• Outside Directors• Standing Corporate
Auditors• Outside Corporate
AuditorsCompensation
Committee

Selection/
Dismissal/Supervision• Inside Directors• Outside Directors

Audit

Coordination

Financial Auditor

Audit

Chairman of the Board

President

Management Strategy Meeting

Management Meeting

Advice• President• Inside Directors

Audit• Executive Officers

Governance/
Surveillance

Governance/
Surveillance

Coordination

Audit Department

Executive Divisions/Group Companies
Internal
Audit

AdviceSoft Drinks Business
Food and Pharmaceuticals
Business

Alcoholic Beverages
Business

Asahi
Breweries
Group CSR
Committee

Other Business

Basic principles of internal control and various internal regulations including
Asahi Breweries Group Business Ethics Rule

51 CSR Report 2007

Contractual Lawyer

Appointment/Dismissal

CSR Report 2007

Activities Promoting Moderate
and Responsible Drinking
For Consumers
For Business Partners
For EmployeesWith the Shareholders’ Meeting as the ultimate decisionmaking body for management issues, Asahi Breweries’
corporate governance structure is based on the Board of
Directors, which supervises the execution of duties byexecutive officers, and the Board of Auditors, which
reviews and audits the performance of the directors.
The Company Law, which came into force in May 2006,
calls for the establishment of “structures necessary toensure that the execution of duties by directors conforms
to prevailing laws as well as the Company’s Articles ofIncorporation.” Asahi Breweries Group has beendeveloping a structure that meets these requirements,
including the development of its Basic Policy on the
Improvement of Internal Control and the establishment of
the Risk Management Committee in 2006.
• Board of Directors
The company’s Board of Directors consists of 11 members,
two of whom are outside directors (as of the end of March
2007). In 2000, the company reduced the number of
directors from 40 to 10 to promote shareholder-oriented
management by accelerating decision-making and bycompletely separating business management from theexecution of duties.
Current outside directors—a former diplomat and aformer senior executive—review the functioning of theBoard of Directors from an independent perspective.
In 2006, 12 regular meetings and two special meetings
were held with 71% attendance by outside directors.
• Nomination Committee and Compensation
Committee
The company established the Nomination Committee andthe Compensation Committee, both reporting to theBoard of Directors, to ensure fairness and transparency inthe appointment of directors and executive officers and in
the determination of their compensation. Each committee
consists of four members: two inside directors and twooutside directors.
The Nomination Committee recommends candidates for
directors, executive officers and corporate auditors to theBoard of Directors. The committee met two times in 2006
with a member attendance rate of 88%. The Compensation
Committee submits proposals to the Board of Directors on

For Local Communities

A structure based on the Board of Directors
and the Board of Auditors

the compensation structure for directors and executive
officers. The committee met five times in 2006 with amember attendance rate of 95%.
• Management Strategy Meeting andManagement Meeting
To promptly follow through on decisions made by the
Board of Directors, the company set up the Management
Strategy Meeting, led by the CEO, to oversee operationsof the entire Group, and the Management Meeting, under
the leadership of the COO, to oversee the operation of themain alcoholic beverage business. These committees use
objective, rational business indicators to maximize
operating effectiveness and conduct management andevaluations of each directors’ progress.
One or more inside auditors attend each of thesemeetings.
• Board of Auditors and Internal Audits
The company’s Board of Auditors reviews and audits the
management and performance of the directors. The board
consists of five auditors, three of whom are outside
auditors. Transparency is enhanced by having outside
auditors constitute the majority. With their different
backgrounds as a company executive, a lawyer and aprofessor, these outside auditors provide multifaceted
audits on corporate management. Eight meetings of theBoard of Auditors were held in 2006 with an 83%
attendance rate by outside directors. The company has
also established a system to allow its auditors to view final
documents at any time as well as to attend important
meetings so they can efficiently and effectively performtheir duties. In addition, two dedicated staff persons are
assigned to the Board of Auditors.
For internal audits, the company established the Audit
Department, which directly reports to the president andconducts audits based on an annual audit plan to check
whether duties are executed properly and efficiently acrossthe entire Group. Audit results are submitted regularly
twice a year to the Management Strategy Meeting to
inform the development of new policies.
Auditors, the Internal Audit Department and the
Financial Auditor exchange information regularly, or asneeded, by holding debriefing sessions, sending copies ofaudit reports, and so forth, to ensure mutual coordination.
In 2006, the Board of Auditors and the Financial Auditor
held four meetings while the Board of Auditors and the
Audit Department met four times.

For Shareholders
and Investors

Corporate Governance Structure

Priority Initiatives of the Asahi Breweries Group• Internal control system (Basic Policy on the Improvement of Internal Control)• Corporate governance (Group CSR Committee, compensation and retirement benefits of directors and auditors)• Risk management (including measures against wide-scale disasters, response to emergencies)

Pursuit of Quality

Visit our Web site at: http://www.asahibeer.co.jp/csr/ (in Japanese)

Environmental
Conservation Activities

WEB

52

Building an Internal Control System

Risk Management

Working in response to amended laws

Devising measures against every risk

The Financial Instruments and Exchange Law (internal
controls on financial reporting) passed in June 2006
stipulates that certified public accountants shall audit theappropriateness of the process for developing financial
statements to ensure the credibility of corporate financial
statements and prevent accounting fraud. It also
mandates the submission of internal control reports.
These provisions will first be applied to the settlements ofaccounts in the fiscal year ending March 31, 2009.
Implementation for the Company will start from thesettlement of accounts in the fiscal year ending
December 31, 2009.
At the same time, the Company Law, which came into
force in May 2006 calls for the establishment of structures
for basic internal controls on compliance and overall risk toprevent corporate misconduct.
The Company is actively working to respond to theseamended laws.
• Response to the Financial Instruments and Exchange
Law (internal controls on financial reporting)In 2006, we identified the scope of application for theCompany and key subsidiaries. In addition, we selected
important accounts and developed related businessprocesses as well as document formats for Company-wide
internal control and evaluation. Based on these efforts, wewill promote documentation, establish an operational
structure and evaluate the adequacy of controls in 2007.
• Building an internal control system in conformity
with the Company Law
Based on the Company Law, the Company establishedthe Basic Policy on the Improvement of Internal Controls in
2006. With this basic policy, we are now working toconstruct an internal control system for the entire group,developing guidelines for risk management andcompliance in line with this system and the basic policy,
and implementing control efforts.
Major group companies including Asahi Soft Drinks Co.,
Ltd., Asahi Food & Healthcare Co., Ltd., Nikka Whisky
Distilling Co., Ltd and Wakodo Co., Ltd. have separately
established their own basic policies.

Asahi Breweries is promoting risk management to prevent
every risk associated with its business as well as toprotect the safety of its employees and local citizens andto ensure the continuity of its business in the event ofemergency.
In regard to the risk management promotion system, weestablished the Asahi Breweries Group Risk Management
Basic Rule and Detailed Operation Rules for Risk
Management that stipulate the application of this rule. The
Asahi Breweries Group Risk Management Committee was
set up to promote risk management.
The Risk Management Committee deliberates anddecides policies for all risk-related activities as well aspriorities based on the results of risk reviews while
checking the content of countermeasures to major risks
and progress against plans.
In addition, staff responsible for or in charge of risk
management promotion in the company and other Group
companies work within the specific parameters of their
responsibilities in line with the policy of the Risk
Management Committee.

53 CSR Report 2007

Risk Management Promotion System
Asahi Breweries Group Risk Management Committee• Directors• Executive Officers

Secretariat
General Affairsand Legal
Management
Department

Departments at the
Asahi Breweries Head Office• Staff responsible for promotion• Staff in charge of promotion

Business Unit (including
the Group companies)• Staff responsible for promotion• Staff in charge of promotion

Quality
Assurance
Department

The Asahi Breweries Group introduced the Legal Promoter
System in 1999 so that everyone in the field canconcretely understand the importance of compliance andpractice compliance in daily operations. This system
deploys the employees who have participated incompliance training organized by the General Affairs andLegal Management Department and have gained a certain
level of knowledge as Legal Promoters for every business
unit and company of the Group. The system provides
training every year to share the latest legal knowledge andcases.
In addition, Senior Legal Promoters who are highly
knowledgeable on compliance have been assigned to

Activities Promoting Moderate
and Responsible Drinking
For Consumers

The Asahi Breweries Group Corporate Ethics Committee
Secretariat

General Manager
in Charge ofLegal Affairs

General Manager,
General Affairsand Legal
Management
Department

Business Units Managers(including Group companies)

Head Office Managers

Business Unit:Manager, General
Affairs and Secretary
Department

Legal Promoterfor Government
Regulations (GLP)For Business Partners

General Affairs andLegal Management
Department

Senior Legal
Promoter (SLP)

Business Unit:Managers

Legal Promoter(LP)

Legal Promoter System
Number ofpromoters

Name

Description

Legal
Promoter

Selected from the staff persons in charge of generalaffairs, accounting, or marketing and sales andassigned to every business unit and company of theGroup. They are expected to cultivate generalknowledge of legal affairs, watch for violations anddetect compliance problems on site. They areencouraged to pass TCCI Legal Affairs for Business
Test, Level 3.

About
130

Senior Legal
PromoterNominated from the assistant vice president level ofthe General Affairs and Secretary Department,
approved by the General Manager in Charge ofLegal Affairs and assigned to every business unit
and major companies of the Group. They are
expected to cultivate expert knowledge in legal
affairs and sense of ownership as a complianceleader and to address problems. They are required
to pass TCCI Legal Affairs for Business Test, Level 2.

27

Legal
Promoter for
Government
Regulations

Recommended by individual departments of Asahi
Breweries Head Office and assigned upon approvalof the General Manager in Charge of Legal Affairs
They are expected to cultivate sophisticatedexpertise and capability to negotiate withgovernment agencies specialized in administrative
regulatory laws directly related to the operations intheir charge and to handle legal risks in fields thatthe legal affairs section cannot cover.

31

CSR Report 2007

For Employees

Deploying Legal Promoters with the latest
legal knowledge

Compliance Promotion System

For Local Communities

Asahi Breweries established the Asahi Breweries Group
Business Ethics Rule to realize its corporate philosophy
and to promote legally sound management. Based on thisBusiness Ethics Rule, we specify an internal system forcorporate ethics and compliance and implement thissystem to establish fair and transparent corporate ethics.
Under this concept, the Asahi Breweries Group set up the
Asahi Breweries Group Corporate Ethics Committee as
the deliberative body for promoting corporate ethics andcompliance.
The committee consists of five members: the board
members and executive officers of Asahi Breweries and an
outside lawyer. The director in charge of compliance andrisk serves as chairperson. The Corporate Ethics
Committee operates the Business Ethics Rules and the Inhouse Reporting System and conducts complianceeducation and monitoring to ensure the soundness of the
Asahi Breweries Group’s business activities.
Asahi Breweries Group Business Ethics Rule is not
limited to compliance but also includes the ethical values
and code of conduct that should be observed by every
member of the Asahi Breweries Group. The content of therule was updated in 2003 and 2006 in response to newlaws, amendments and current social issues while making
it more convenient for its use as a compliance tool in dayto-day operations.

Priority Initiatives of the Asahi Breweries GroupOperating the Corporate Ethics Committeewith the participation of an outside lawyer

For Shareholders
and Investors

Promotion System

major business units since 2002 to further reinforce ourcompliance promotion system.
In addition, in March 2006, Legal Promoters for
Government Regulations who review operations atworksites from a technical point of view based on theadministrative regulatory laws related to major operations
were assigned at the Head Office and such activities as
identifying legal and compliance risks in cooperation with
the General Affairs and Legal Management Department.

Environmental
Conservation Activities

We are strengthening systems including employee education toensure compliance.

Pursuit of Quality

Compliance54

Conducting corporate ethics surveys involving
all employees across the entire Group
Since 2002, Asahi Breweries has conducted annual
corporate ethics surveys on an anonymous basis involving
all employees across the entire Group to checkunderstanding of compliance and identify problems in thefield. We are also implementing finely tuned improvement
measures based on survey results.

lawyers. Reporting can be made face-to-face or via e-mail,sealed letter or fax (external contacts only).
Any issues reported through the system are vigorously
investigated, reviewed and properly addressed by thecommittee and steps are taken to ensure that no employee
ever places themselves at risk by reporting a problem.
Flow of the In-house Reporting System

Training tailored to each department
At Asahi Breweries, individual departments hold compliancetraining sessions tailored to their respective operations.
In 2006, the General Affairs and Legal Management
Department took the lead in carrying out caravan training
sessions that visited business units across the nation forencouraging staff learning in such areas as premiums andlabeling, personal information, and moderate andresponsible drinking.
They also conducted
collective training
sessions on individual
topics such as fairtrade, trademarks andlabeling.

Chairman of the Board, President
Directive

ReportThe Asahi Breweries Group
Corporate Ethics Committee• Directors • Executive Officers • Contractual Lawyer
Directive

ReportRequest for
Investigation

Internal Contact*Name of reporting party

Corporate Ethics Committee Office• General Manager, Legal Affairs• General Manager, General
Affairs and Legal Management
Department• Contractual
LawyerResponse

Consultation(name disclosed)
Response

External Contact

can be concealed attheir discretion.

Consultation (namedisclosed/anonymous)

Selection

Response

Employee Seeking
Consultation

Compliance training sessions

Operation of the Clean Line System

Protection of Intellectual
Property Rights

Operating an in-house reporting system withinternal and external contacts

Preventing violations of the rights of theCompany and third parties

The Asahi Breweries Group set up the Clean Line Systemand provides information about the system through its
intranet and other channels for quickly identifying potential
risks associated with business activities and preventing
the occurrence of major problems.
The system was established to address problems that,for whatever reason, employees felt they could not reportor could not seek advice for through standard channels ofcommunication. It provides a mechanism for protecting
employees in reporting or consulting with experts withregard to actions at the workplace that are, or may be, inviolation of prevailing laws and regulations, the Asahi
Breweries Group Business Ethics Rule, or other rules.
Consultations can be arranged either through an internal
contact person using the Corporate Ethics Committee
Office or an external contact person using contractual

Asahi Breweries considers Intellectual Property (IP) rightactivities to be essential for our business deployment.
Therefore, the Company actively promotes the acquisitionof rights according to the stage of business development
to ensure free business activities while conducting
research into potential violations of our rights by others
and properly addressing any discovered violations basedon applicable laws and regulations.
We are also establishing an organization and rules forrespecting the IP rights of third parties, including
conducting searches on prior arts to avoid violating others’
rights when developing new products, new research
projects and so forth.
In addition, we maintain only those rights we need while
releasing other rights as part of an effort for the soundgrowth of the industry and cost-benefit performance.

55 CSR Report 2007

Since establishing the Employee Invention Treatment
Guideline in 1971 to contribute to the Company’s
development by encouraging the intellectual creativity of its
employees, Asahi Breweries has been working to harmonize
the rights of employees with those of the company.
The Employee Invention Treatment Guideline divides thefield of intellectual creativity into patents, utility models,design, variety and know-how while classifying rewards
into the Filing Reward, which is paid at the time of filing,
and the Performance Reward, which is paid based on theevaluation after registration.
The evaluation is performed by the Invention Evaluation
Committee and based on the contribution to corporate
performance by inventions that are used in the Company
or based on the price of inventions that are transferred or
licensed to a third party.
If the inventor disagrees with the evaluation results, asystem is provided for a settlement acceptable to bothsides and includes an appeal process to the committee.
A total of 37 Performance Rewards were paid in 2006.

Activities Promoting Moderate
and Responsible Drinking
For Business Partners

For Consumers

The Asahi Breweries Group formulated the Information
Management Rules in April 2004 to protect a variety ofconfidential information, including personal data provided
by customers and business partners, and to properlyclassify information and ensure systematic implementationof adequate management.
The General Affairs and Legal Management Department
is the lead office for handling confidential information andbusiness unit managers serve as information managers.
Business units distribute the Information Management
Handbook, which provides easy-tounderstand explanations of the essenceof information handling to employees inorder to raise their awareness. In
addition, compliance with various rules
and policies is checked throughvoluntary audits or business unit audits
conducted by the Audit Department.
Information Management
Handbook

Rigorously protecting personal information
obtained through Web sites and business units
The Asahi Breweries Group established the Asahi
Breweries Group Rules for Handling Personal Informationin May 2005 to offer more detailed guidance in line withthe full enforcement of the Personal Information Protection
Law in April 2005.
We ensure the protection of personal information
obtained on Web sites through the Personal Information
Protection Policy and the Personal Information Protection
Compliance Program.
For personal information that is used in our business
units, we manage the process from acquisition to storage,
use and disposal by utilizing the Personal Information
Management Ledger.

For Employees

Rewards for Employee Inventions are decided basedon the Employee Invention Treatment Guideline

Protecting a variety of confidential information
under the Information Management Rules

Diligently selecting and managing contractors
Asahi Breweries entrusts the management of customer
application information to outside contractors duringpromotional campaigns and other activities. We choose
highly reliable contractors who must comply with the Rules
for Information Management by Contract to prevent theleakage of personal information.

CSR Report 2007

56

For Local Communities

A director in charge of IP strategy is appointed, a strategy
is developed in line with our business strategy, rights aresought and strategies of competitors are analyzed in therelated field.
For acquiring IP rights, expert staff members of the
Planning Department of the Research & Development
Division, the Patent Room and other related entities
provide support and advice by visiting individual business
units to promote the discovery of potential intellectual
properties, acquire rights and conduct research into the IP
rights of others. For overseas applications, the country inwhich the application is to be filed is selected based on
discussions in the Research & Development Division.
As a result, we have registered 24 new rights including
patents, utility models and design rights.
Whenever we have information about applications, we
conduct related searches and appropriately respondunder the laws of the relevant country based on the spiritof respect for the rights of others as well as those of theCompany.

Information Security

For Shareholders
and Investors

Collaboration between Research & Development
Division and Patent Room to support otherdepartments

Priority Initiatives of the Asahi Breweries Group• Compliance
Compliance promotion system and activities, in-house reporting system, Asahi Breweries Group Business
Ethics Rule, protection of confidential information, protection of intellectual property rights

Pursuit of Quality

Visit our Web site at: http://www.asahibeer.co.jp/csr/ (in Japanese)

Environmental
Conservation Activities

WEB

Third-Party Opinions

Kanji Tanimoto
Professor, Graduate School of Commerce andManagement, Hitotsubashi University

The main features of CSR efforts by the Asahi Breweries

The CSR Policy states that it looks at the entire supply

Group during this year are the launch of an organization for

chain and global development. We can interpret this topromoting CSR activities and the establishment of the CSR

express the commitment to include these factors in CSR.

Policy. Incorporation of CSR into a Company-wide

However, there is no indication of how this will be done inmanagement system and the construction of a mechanism toconcrete terms. For example, how will matters related to therun PDCA cycles at individual departments remain issues forenvironment or CSR be incorporated in the existing

the future.

procurement standard, and to what degree will they be

It can be said that that CSR in the food industry begins withensuring the safety and security of food. In this sense, thecontrolled and monitored? Future efforts will be watched.
This year’s report is characterized by the intention to showbasis for CSR is to establish a corporate structure for

CSR-related issues in the overall flow of manufacturing frompursuing quality that will be supported by consumers for

product development to distribution and sales. Compared

improving public appreciation of the Company.

with past reports in which philosophies, systems and topics

Looking at the history of the CSR activities by the Asahi

were listed for each stakeholder category, the flow and

Breweries Group, the period of the Second Medium-term

characteristics of the entire business are far more visible.

Management Plan (2004–2006) of the Group corresponds toFuture reports will become easier to understand by also

the Introductory Stage when the Group CSR Committee wasshowing relations with stakeholders in this style, and not

set up and the first CSR report was published. The period of

merely as a sub-topic, as in the “Pursuit of Quality” in thisthe Third Medium-term Management Plan (2007–2009) is thereport. I hope that challenges during the year and the next

Expanding Stage in which an organization for promoting CSR

targets for each sector will be described, showing the linkage

activities with greater flexibility was set up and the CSR Policy

between the report and CSR activities.

(see p. 8) was established last autumn.
During the Introductory Stage, each related department

Since the Introductory Stage, decision-makers in the Asahi
Breweries Group have believed that CSR is an essential

separately responded to its own issues based on the

aspect of management that forms the foundation of a

Corporate Philosophy and the guidelines for corporate

corporation, and a poor approach to CSR would undermine

activity. While these activities themselves are valuable,

its raison d’etre. Indeed, CSR is not anything especially new.

including quality control, environmental management and

The real question is how to build and maintain a relationshipsocial contribution activities, it is not clear how they areof trust with stakeholders. I expect the Company will also

specifically incorporated into Company-wide management

define a Company-wide orientation for important CSR issues,

system or how the individual companies of the Group willrisks and activities in its medium- and long-term managementalign with CSR management if the Asahi Breweries Group isplans and pursue systematic CSR management efforts.

to genuinely establish a CSR system. Furthermore, CSR
management does not itself constitute a governance orcompliance system. Social fairness, ethics and consideration
for the environment, safety, human rights and so on must be
incorporated into the process of daily business activities toensure they are socially responsible. A governance system isa framework for ensuring the effective functioning of thismanagement.
The Expanding Stage will require developing and improving
a Company-wide management system based on the CSR
Policy. Correct understanding and active commitment by all
employees of Group companies will form the foundation. To
this end, it is necessary to establish PDCA cycles after clearly
defining targets in each department. Unlike the situation
surrounding environmental management, social aspects
include areas difficult to quantify; therefore, objectives must
be managed through a more qualitative approach.

57 CSR Report 2007

ProfileProfessor (Doctor of Business Administration), Graduate Schoolof Commerce and Management, Hitotsubashi University
Representative Director of Social Innovation Japan (specified
nonprofit corporation)
Specialized in enterprise system theory and corporations andsociety theory
Chairperson of the Study Group for Food Industry’s CSR and
the CSR Management Promotion Association, among others
Recent publications include: SRI and New Corporation/Finance(author and editor), Toyo-Keizai-Shinpo-sya, and CSR,
Considering Companies and Societies, NTT PublishingVisit our Web SiteWEB

http://www.asahibeer.co.jp/csr/ (in Japanese)

Please review a variety of information that is not included in this booklet.

Our Approach to CSR

Social and Cultural Contributions• Our approach to CSR• President’s message• Our approach to social and cultural activities• Supporting the development of artistic and culturalactivities• Contributing to society

CSR Management• Internal control system• Corporate governance• Compliance• Risk management

Pursuit of Quality• New product development• Procurement of raw materials• Manufacturing• Logistics• Distribution and sales• Labeling and advertisement• Quality policy and assurance system• Quality management system certification status

Moderate and Responsible Drinking and Health• Actions taken by Asahi Breweries• Industry-wide efforts• Tools for encouraging moderate drinking• Moderate drinking• Alcohol and health

Environmental Conservation Activities• Prevention of global warming
Reduction of CO2 emissions, introduction of energy-saving
facilities, CO2 recycling, increasing distribution efficiency• Water wesources conservation
Water usage reduction, waste water reduction• Waste reduction
Reduction of waste generation, volume reduction of raw
materials, resource recycling, recycling at headquarters
building, 3R in containers and packaging• Environmental education
Environmental education programs, water resource
conservation activities• Green purchasing• Environmental management
Environmental Basic Principles, promotion system,
obtaining certifications, environmental education,compliance with environmental laws and regulations,
measurement guidelines for environmental soundness insales and promotional goods, environmental accounting

For Consumers• Activities of the Customer Relations Office• Comments received• Response to customer suggestions

For Business Partners• Relationship with suppliers
Basic Purchasing Policy, Procurement Clean Line,
Questionnaire Survey on Corporate Social Responsibilities• Relationship with business partners

For Shareholders and Investors• Return to shareholders• Information disclosure and communication• Evaluations by external review organizations

For Employees• Group basic personnel policies• Equality and fairness in employment
Employment situation, promotion of women, employmentof foreign nationals, employment of the physicallychallenged, reemployment situations, recruitment
situations, relationship with the labor union• Personnel evaluation and performance rating• Training and education programs• Creating a pleasant workplace
Efforts for occupational safety & health, efforts for
employees health management, maternity leave, childcare
and other family care support, raising awareness ofhuman rights, other health and welfare systems

Index by Function• Policies, rules, standards• Frameworks, structures, systems• Performance data

Guideline Comparison List
• GRI guideline comparison list
• The Ministry of the Environment guidelinecomparison list

• Medium-term environmental management plan
• Environmental targets and results by each group company• Material balance• Asahi forest• Eco-tanken game
• Environmental culture seminars• Eco-life proposals

CSR Report 2007

58

CSR Committee
1-23-1 Azumabashi, Sumida-ku,
Tokyo 130-8602, Japan
Tel.: +81-3-5608-5195
Fax: +81-3-5608-5201
URL: http://www.asahibeer.co.jp/english
Published: August 2007

Consumption of alcohol by persons under 20 years of age and drunk driving areprohibited by Japanese law. Drinking alcohol during pregnancy or while breastfeedingis harmful to unborn babies and infants. Please drink responsibly. Please recycle
bottles and cans.