Japan's Asahi restarts beer production following cyberattack

Asahi Breweries, a subsidiary of Asahi Group, has restarted production at its six Japanese beer plants following a cyberattack that caused a week-long system outage, disrupting order processing and shipping. Production resumed on October 2, with shipments of its Super Dry beer recommencing and other products slated for October 15, though the company did not specify when it expects to return to full capacity, indicating potential ongoing supply chain recovery challenges after the disruption led to product shortages in Japan.

Analysis

TOKYO, Oct 6 (Reuters) - Asahi Group's (2502.T) beer-making subsidiary, Asahi Breweries, said on Monday it has restarted production at its six Japanese beer plants after the group's operations were disrupted by a cyberattack. Asahi Group suspended operations, including order processing, shipping and call-centre functions in Japan, a week ago after a cyberattack caused a system outage. The Reuters Daily Briefing newsletter provides all the news you need to start your day. Sign up here. Production resumed at the six plants on October 2, Asahi Breweries said in a statement, without specifying how much longer it would take to return to full capacity. Advertisement · Scroll to continue The company already restarted shipments of its popular Super Dry beer, and plans to resume shipments of more than a dozen other products on October 15, the statement said. The disruption has seen restaurants, bars and stores in Japan running low on beer and other Asahi drinks. The breach is the latest in a series of cyber and ransomware attacks targeting global companies including Jaguar Land Rover. Reporting by Kentaro Okasaka; Writing by Sam Nussey, Kiyoshi Takenaka; Editing by Kate Mayberry Our Standards: The Thomson Reuters Trust Principles. Asahi Breweries is in the initial stages of recovering from a significant operational disruption following a cyberattack that halted key functions, including order processing and shipping, for a full week. The incident caused tangible product shortages across Japan, impacting restaurants, bars, and stores, thereby affecting near-term revenue and market supply. While production at its six domestic plants resumed on October 2, the recovery is phased; shipments of its flagship Super Dry beer have restarted, but more than a dozen other products will not resume shipping until October 15. Critically, management has not provided a timeline for a return to full production capacity, indicating that operational normalization may be protracted and supply chain issues could persist. The market's moderately positive sentiment suggests investors are focused on the restart as a sign of recovery, but the lack of a clear timeline for full restoration remains a key uncertainty for assessing the full financial impact of the outage.

Key Decisions for Investors

• Investors should closely monitor company communications for a specific timeline on returning to full production capacity, as this is the primary variable determining the duration of supply constraints and the full financial impact.
• It is prudent to anticipate a negative impact on the current quarter's revenue and earnings due to the week-long production halt and phased shipment resumption, which led to documented product shortages.
• Consider the operational risk highlighted by this incident; future assessments of the company should include scrutiny of its cybersecurity infrastructure and resilience, as this event demonstrates a tangible vulnerability to its core operations.