Asahi cyberattack could leave Japan without its most popular beer

Shipments of Asahi's Super Dry beer and other popular drinks have halted, prompting supermarket chains such as Lawson and 7-Eleven to prepare for shortages

Japan could soon face a shortage of its popular beer after a cyberattack on Asahi Group, the country’s largest brewer, brought its domestic production to a standstill, according to a report by Reuters. 

 

Famed for its Super Dry beer, Nikka Whisky and a range of non-alcoholic beverages, Asahi suspended operations across Japan on Monday, including order processing, shipping and call centre services. The disruption from the cyberattack entered its fifth day on Friday, with no sign of resolution.

 

System failure hits 30 factories 

Asahi said the system failure caused by the breach has crippled order and shipment operations at most of its 30 Japanese factories. Overseas facilities have not been affected. “We are actively investigating the cause and working to restore operations; however, there is currently no estimated timeline for recovery,” the company said. It added there was no evidence of personal information or customer data being compromised.

 

 

Japan generates about half of Asahi’s global revenue. The brewer also owns leading international brands, including Peroni, Pilsner Urquell and Grolsch.

 

Convenience stores brace for shortages 

Convenience store chain Lawson said it expected an imminent shortage of Asahi products and was preparing to offer substitutes. FamilyMart and 7-Eleven also reported disruptions to supplies. Asahi’s shares have fallen about 4 per cent to their lowest level since February following confirmation of the cyberattack.

 

Analysts at Morgan Stanley MUFG estimate potential daily losses at between $10.2 million and $13.6 million under a full suspension scenario. Retail sales remain largely unaffected for now, but the analysts warned that “a prolonged stoppage would increase the risk of retailers/ consumers switching to rival products”.

 

Alcohol orders paused, food continues 

Asahi said it began processing some orders manually on Wednesday by visiting customers in person and handwriting orders. While the company continues to accept orders for food and soft drinks, it has halted new orders for alcoholic beverages to prioritise outgoing shipments. The first batch of manually filled orders was dispatched on Friday. The brewer said it is working closely with investigative authorities to address the cyberattack.

 

Cyberattacks on global businesses 

The incident adds to a growing list of cyber and ransomware attacks on global businesses. In Britain, luxury carmaker Jaguar Land Rover was forced to halt production last month, while retailers Marks & Spencer and UK-based The Co-operative Group have also suffered recent breaches.