Brewing giant Asahi set to sell restaurant business, Nikkei reports

(Reuters) - Asahi Group plans to sell its struggling restaurant business, Nadaman, to a Japanese peer as the country's biggest brewer looks to exit the segment to focus on alcoholic and other beverages, Nikkei reported on Friday.

The brewing giant is looking to sell the business for an undisclosed sum, the report said, adding that an agreement had been signed between the parties in July and the transaction is expected to be completed on Sept. 1.

Japanese food services firm Onodera Group, which runs the Ginza Onodera chain locally, in the U.S. and China, will takeover Nadaman, Nikkei said.

"We decided that the best thing to do was to hand over Nadaman to an owner that understands the characteristics of the restaurant business and can maintain and develop it," an Asahi spokesperson told Nikkei.

Nadaman has been in the red, logging net losses for five straight years through 2023.

Asahi, since early 2023, has been intending to exit its restaurant operations as part of its shift to its core alcohol and beverage segment. It had previously sold a part of its beer gardens to Japan's Colowide and had then transferred the entirety to the pub and restaurant chain.

Asahi did not immediately respond to a request for comment.

(Reporting by Rishav Chatterjee in Bengaluru; Editing by Mohammed Safi Shamsi)