Asahi to license Fuller's IP in £250m acquisition

Japanese beverages company  Asahi Group Holdings will buy the beer and cider business of British firm  Fuller’s and license its IP portfolio.

The deal, worth £250 million ($327 million), was announced in  a press release issued today, January 25. The purchase will be facilitated through Asahi regional subsidiary Asahi Europe.

Fuller’s Brewery, based in London, produces a wide range of beers and ciders, including the London Pride, Frontier and Seafarers brands.

According to Fuller’s, Asahi will receive an exclusive, global and permanent licence to use certain Fuller’s trademarks, including the Fuller’s name and logo. The British company will retain ownership of the trademarks.

Fuller’s will now concentrate on its pub and hotel business.

In a press release, Asahi outlined its “Asahi group philosophy”, which it implemented this month. This strategy will see the company expand its portfolio and seek to acquire global high-value brands. It follows the company’s purchase of European brands including Peroni, Grolsch, Miller and Pilsner Urquell in 2016.

In its  own statement, Fuller’s said that Asahi “has a proven track record as a long-term steward of iconic brands, making them an ideal strategic partner to the Fuller’s pubs and hotels business in the future”.

The sale is subject to approval by an extraordinary general meeting of Fuller’s shareholders and confirmation from the UK Competition and Markets Authority.

Speaking to WIPR, Jonathan Clegg, partner at Cleveland Scott York in London, said that “brand value is clearly one of the key drivers behind this deal, with Akiyoshi Koji, the CEO of Asahi, identifying ‘untapped international potential’ in the London pride brand in particular”.

Given that Fuller’s is aiming to focus increasingly on its pubs and hotel business, “structuring the deal in this way means that the trademark registrations need not be partially assigned” to different parties, Clegg explained.

"In trademark terms, particularly with Asahi’s global aspirations and the vastly differing trademark laws around the world, this will simplify the legal steps for both businesses going forward."

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