2012To Our ShareholdersSpecial Issue

November 24, 2011:Long An Brewery Opening CeremonyFull-Scale Operations Begin at Last!

Growth Market Vietnam

SpecialFeature

From SAPPORO HOLDINGS LIMITED20-1, Ebisu 4-chome, Shibuya-ku, Tokyo 150-8522, Japan

http://www.sapporobeer.jp/hakone/

88th Hakone Ekiden (Tokyo-Hakone Round-Trip College Ekiden Race)

First day: 8:00 a.m. start, Monday, January 2 Second day: 8:00 a.m. start, Tuesday, January 3

Race Schedule

To whip up enthusiasm for the Hakone Ekiden, Sapporo Breweries again set up a special website. Here, visitors can view original television commercials under the series title “Jonetsu ni Kanpaihen,” which celebrates the passion of runners for their sport. The Company also turned its always-well-received Sapporo Draft Beer Black Label Hakone Ekiden Can into a series this year. The first design debuted on September 28, to be on sale when the qualifiers took place on October 15, and the second was released December 7, to cover the year-end season, when excitement starts to grow in anticipation of the actual event. In addition, the Company launched a campaign to draw 88 names from eligible entries for a collector’s box showing the times posted in the 88th Hakone Ekiden. The box contains an original towel, two beer mugs and two coasters. The campaign runs from December 7, 2011 through January 31, 2012. The Hakone Ekiden always has moments of drama. What will happen at the 2012 event? Note that the Sapporo Draft Beer Black Label Hakone Ekiden Can is produced in limited quantity and is only available while supplies last.

Officially, it is the Tokyo-Hakone Round-Trip College Ekiden Race—an annual event at the New Year—but it is known more commonly as the Hakone Ekiden. Sapporo Breweries has been a sponsor of this road relay since 1987, making the 88th run in 2012 the Company’s 26th year of sponsorship.

A Toast: To Sportsmanship! Sapporo Breweries raises its glass again to the Hakone Ekiden relay race runners.

Photo provided by Rikujo Kyogi Co., Ltd.

• Sapporo Beer’s Expanding Worldwide Presence• Details on Management Integration with Pokka Corporation

Reconstruction Support Activities in the Wake of the Great East Japan Earthquake

Backing Collaborative School Program for Children in Disaster Areas

Two Beer-Like Products Made with Tohoku-Grown Hops Available Nationwide

Sapporo Breweries launched two limited-edition products—Sapporo Mugi to Tohoku Hop and Sapporo Draft Beer Black Label Tohoku Hop 100%—nationwide on September 7 and October 26, respectively. Both products are made with Tohoku-grown hops supplied to the Company under an agreement with a local agricultural cooperative. Until 2010, these two beer-like beverages were only available in the six prefectures of the Tohoku region, but seeking to build product-based ties that would draw the country together, the Company expanded availability throughout Japan. The hops used in these beer products are grown by the Iwatekenhoku Hop Agricultural Cooperative Association, covering Iwate and Aomori prefectures, and have earned an award from the Ministry of Agriculture, Forestry and Fisheries seven times, substantiating the high-quality of the crops produced by the association’s members. A portion of the sales from both beer products will go to JA Zen-Noh—the National Federation of Agricultural Co-operative Associations—for repairing farms and agricultural facilities and re in forc ing suppor t activities to restore agricultural oper a t ions in the areas devastated by the earthquake and tsunami.

In the wake of the Great East Japan Earthquake, which struck on March 11, 2011, we jumped into action with such support efforts as provision of bottled water and distribution of food through the Group’s restaurant facilities. Efforts continued thereafter, through the respective business activities of Group companies, with various responses aimed at reconstruction and recovery in the disaster areas. The Sapporo Group remains committed to additional support throughout these areas.

On November 17, 2011, proceeds of approximately ¥26 million from the sale of beer—equivalent to 150,000 glasses—at Beer Hall Day on August 4 and the Yebisu Beer Festival in Tokyo’s Ebisu neighborhood in September were donated to the Hatachi Fund. This educational fund will use the money for Collaborative School, a night-school program for children living in the disaster-stricken areas. Months after the earthquake, many children living in these devastated areas still live in evacuation centers and temporary housing, which are not good environments in which to study. Collaborative School was established to provide places where children affected by the disaster can study in a more learning-friendly setting. An example is the Onagawa Kogakkan, in Onagawa, Miyagi Prefecture, with 212 students.

Major Efforts in Disaster Reconstruction

President and Representative Director, Group CEOSapporo Holdings LimitedTsutomu Kamijo

A new year begins. I sincerely hope you will support the Sapporo Groupin 2012 as you have in the past.

　

Allow me to take this opportunity on behalf of the Board of Directors to wish our

shareholders good health and prosperity in 2012 and to extend our sincere

appreciation for the support you have shown the Sapporo Group. At the same time, I

would like to let those in the areas devastated by the Great East Japan Earthquake know

that you are never far from our thoughts.

Seeking to play a positive role in recovery through our business activities, we got

involved early on, joining various support organizations in the disaster areas. As a

corporate group, we remain committed to rebuilding efforts in the wake of this

unforgettable catastrophe.

In 2011, the Sapporo Group recorded extraordinary losses—an unavoidable

consequence of the Great East Japan Earthquake. But we never let up the fight to

strengthen the Group’s growth trajectory—the theme of the current management

plan—and we moved steadily forward on our international expansion strategy,

including a presence in Vietnam, as well as structural realignment culminating in

management integration with Pokka Corporation. We will continue to address issues

affecting growth, accelerating our approaches to build a stronger corporate

organization.

In these efforts, we look forward to the uninterrupted support of you, our valued

shareholders.

To Our Shareholders

1 2

Reconstruction Support Activities in the Wake of the Great East Japan Earthquake

Backing Collaborative School Program for Children in Disaster Areas

Two Beer-Like Products Made with Tohoku-Grown Hops Available Nationwide

Sapporo Breweries launched two limited-edition products—Sapporo Mugi to Tohoku Hop and Sapporo Draft Beer Black Label Tohoku Hop 100%—nationwide on September 7 and October 26, respectively. Both products are made with Tohoku-grown hops supplied to the Company under an agreement with a local agricultural cooperative. Until 2010, these two beer-like beverages were only available in the six prefectures of the Tohoku region, but seeking to build product-based ties that would draw the country together, the Company expanded availability throughout Japan. The hops used in these beer products are grown by the Iwatekenhoku Hop Agricultural Cooperative Association, covering Iwate and Aomori prefectures, and have earned an award from the Ministry of Agriculture, Forestry and Fisheries seven times, substantiating the high-quality of the crops produced by the association’s members. A portion of the sales from both beer products will go to JA Zen-Noh—the National Federation of Agricultural Co-operative Associations—for repairing farms and agricultural facilities and re in forc ing suppor t activities to restore agricultural oper a t ions in the areas devastated by the earthquake and tsunami.

In the wake of the Great East Japan Earthquake, which struck on March 11, 2011, we jumped into action with such support efforts as provision of bottled water and distribution of food through the Group’s restaurant facilities. Efforts continued thereafter, through the respective business activities of Group companies, with various responses aimed at reconstruction and recovery in the disaster areas. The Sapporo Group remains committed to additional support throughout these areas.

On November 17, 2011, proceeds of approximately ¥26 million from the sale of beer—equivalent to 150,000 glasses—at Beer Hall Day on August 4 and the Yebisu Beer Festival in Tokyo’s Ebisu neighborhood in September were donated to the Hatachi Fund. This educational fund will use the money for Collaborative School, a night-school program for children living in the disaster-stricken areas. Months after the earthquake, many children living in these devastated areas still live in evacuation centers and temporary housing, which are not good environments in which to study. Collaborative School was established to provide places where children affected by the disaster can study in a more learning-friendly setting. An example is the Onagawa Kogakkan, in Onagawa, Miyagi Prefecture, with 212 students.

Major Efforts in Disaster Reconstruction

President and Representative Director, Group CEOSapporo Holdings LimitedTsutomu Kamijo

A new year begins. I sincerely hope you will support the Sapporo Groupin 2012 as you have in the past.

　

Allow me to take this opportunity on behalf of the Board of Directors to wish our

shareholders good health and prosperity in 2012 and to extend our sincere

appreciation for the support you have shown the Sapporo Group. At the same time, I

would like to let those in the areas devastated by the Great East Japan Earthquake know

that you are never far from our thoughts.

Seeking to play a positive role in recovery through our business activities, we got

involved early on, joining various support organizations in the disaster areas. As a

corporate group, we remain committed to rebuilding efforts in the wake of this

unforgettable catastrophe.

In 2011, the Sapporo Group recorded extraordinary losses—an unavoidable

consequence of the Great East Japan Earthquake. But we never let up the fight to

strengthen the Group’s growth trajectory—the theme of the current management

plan—and we moved steadily forward on our international expansion strategy,

including a presence in Vietnam, as well as structural realignment culminating in

management integration with Pokka Corporation. We will continue to address issues

affecting growth, accelerating our approaches to build a stronger corporate

organization.

In these efforts, we look forward to the uninterrupted support of you, our valued

shareholders.

To Our Shareholders

1 2

★Appeal of Vietnamese MarketBeer consumption in Vietnam is rising and is currently the third highest in Asia, after China and Japan. The average age of the Vietnamese people is 27.8 years, which is relatively young. In addition, beer is an increasingly popular beverage for adults. These conditions bode very well for future demand, making this market a lucrative one in which to establish a solid presence. In Vietnam, many people like to drink beer on the rocks—yes, over ice—so Sapporo Premium for the local market will be tailored to local preferences.

Plans for the Future

With the Long An Brewery operational, the Sapporo Group now has production bases of its own in three countries—Japan, Canada and Vietnam—and has set the stage for wider sales of Sapporo Premium in the pan-Pacific region. As a vital point on the Group’s map in continental Asia, which continues to demonstrate remarkable growth, the Long An Brewery is slated for an increase in annual capacity, from the current 40,000 kiloliters to 150,000 kiloliters by 2019, and will function as a launching pad for further expansion into neighboring countries. The next task on the agenda is to embark on full-scale marketing activities, paralleling growth in Vietnam, to enhance the profile of Sapporo Premium as a first-class beer in Asia. There are indeed great things in store for Sapporo, in Vietnam and beyond to the rest of Asia.

Overview of Long An BreweryName: Sapporo Vietnam Limited Long An BreweryAnnual production capacity: 40,000 kilolitersProduction: Sapporo Premium (Sapporo Premium is the brand tapped for international development.)

Ingredients: Malt, hops and rice • Sapporo Premium Silver Cup, 650ml can • Sapporo Premium, 330ml small bottle • Sapporo Premium, 330ml can • Sapporo Premium, 20-liter kegConstruction completed: November 24, 2011

1

★Facts about Vietnam

★Sapporo Vietnam’s Steps So Far 2009 Dec. 10 Up-front investment in Vietnamese market, Announced construction of brewery

2010 Mar. 29 Created Sapporo Vietnam Jul. 1 Started construction on Long An Brewery

2011 Aug. 29 First shipment of beer-making ingredients received Nov. 24 Construction completed

Construction of Sapporo Vietnam’s Long An Brewery began in July 2010 and was completed on November 24, 2011. This facility is noteworthy on two counts: it is the first brewery built in Vietnam by a Japanese brewery and the first attempt by the Sapporo Group to construct a manufacturing facility overseas. Initially, the facility will make Sapporo Premium, the Group’s strategic product for international markets, and will then begin sales in Vietnam in earnest.

Growth Market Vietnam

Sapporo Vietnam is the operating arm of a joint venture established by Sapporo Brewer ies and Vietnam National Tobacco Corporation (“Vinataba”) to develop the beer business in Vietnam.

Special Feature

Population: 90.54 million (2011 estimate)

Average age: 27.8

Real GDP growth: 6.8% (in 2010)

3 4

Long An Brewery Opening Ceremony on November 24, 2011:Start of Full-Scale Operations

★Appeal of Vietnamese MarketBeer consumption in Vietnam is rising and is currently the third highest in Asia, after China and Japan. The average age of the Vietnamese people is 27.8 years, which is relatively young. In addition, beer is an increasingly popular beverage for adults. These conditions bode very well for future demand, making this market a lucrative one in which to establish a solid presence. In Vietnam, many people like to drink beer on the rocks—yes, over ice—so Sapporo Premium for the local market will be tailored to local preferences.

Plans for the Future

With the Long An Brewery operational, the Sapporo Group now has production bases of its own in three countries—Japan, Canada and Vietnam—and has set the stage for wider sales of Sapporo Premium in the pan-Pacific region. As a vital point on the Group’s map in continental Asia, which continues to demonstrate remarkable growth, the Long An Brewery is slated for an increase in annual capacity, from the current 40,000 kiloliters to 150,000 kiloliters by 2019, and will function as a launching pad for further expansion into neighboring countries. The next task on the agenda is to embark on full-scale marketing activities, paralleling growth in Vietnam, to enhance the profile of Sapporo Premium as a first-class beer in Asia. There are indeed great things in store for Sapporo, in Vietnam and beyond to the rest of Asia.

Overview of Long An BreweryName: Sapporo Vietnam Limited Long An BreweryAnnual production capacity: 40,000 kilolitersProduction: Sapporo Premium (Sapporo Premium is the brand tapped for international development.)

Ingredients: Malt, hops and rice • Sapporo Premium Silver Cup, 650ml can • Sapporo Premium, 330ml small bottle • Sapporo Premium, 330ml can • Sapporo Premium, 20-liter kegConstruction completed: November 24, 2011

1

★Facts about Vietnam

★Sapporo Vietnam’s Steps So Far 2009 Dec. 10 Up-front investment in Vietnamese market, Announced construction of brewery

2010 Mar. 29 Created Sapporo Vietnam Jul. 1 Started construction on Long An Brewery

2011 Aug. 29 First shipment of beer-making ingredients received Nov. 24 Construction completed

Construction of Sapporo Vietnam’s Long An Brewery began in July 2010 and was completed on November 24, 2011. This facility is noteworthy on two counts: it is the first brewery built in Vietnam by a Japanese brewery and the first attempt by the Sapporo Group to construct a manufacturing facility overseas. Initially, the facility will make Sapporo Premium, the Group’s strategic product for international markets, and will then begin sales in Vietnam in earnest.

Growth Market Vietnam

Sapporo Vietnam is the operating arm of a joint venture established by Sapporo Brewer ies and Vietnam National Tobacco Corporation (“Vinataba”) to develop the beer business in Vietnam.

Special Feature

Population: 90.54 million (2011 estimate)

Average age: 27.8

Real GDP growth: 6.8% (in 2010)

3 4

Long An Brewery Opening Ceremony on November 24, 2011:Start of Full-Scale Operations

Activities in North America

Sapporo Beer’s Expanding Worldwide Presence

Sleeman Breweries Ltd.Sapporo U.S.A., Inc.

Operations in the United States, with a quarter-century of history, and in Canada, where subsidiary Sleeman Breweries Ltd. has production points, are pillars supporting business expansion and improved profitability of the Sapporo Group. These operations have delivered steady results. We will maximize the advantages afforded by having our own breweries and promote the creation of brands that symbolize the excellence of the Sapporo Group.

Asia-Oceania, particularly the pan-Pacific region, including Vietnam, where we just completed construction of the country’s own brewery (see pages 3-4), is in the spotlight as a launching pad for growth in the future.

CanadaUnited States

South Korea

Singapore and Taiwan

Ranked No. 3 in Canada, Sleeman is a leader in the premium beer market and vigorously markets its own brand as well as the Sapporo brand. Sleeman recorded a year-on-year increase in sales of its own brand in 2011, sustaining sales growth for a fifth consecutive year.

In July 2011, we concluded a licensing agreement with Coopers Brewery, Australia’s No. 3 brewery. Through local production of Sapporo Premium and enhanced sales opportunities, we will actively promote this product in the premium beer market, which is showing particularly strong growth, on our way to becoming the No. 1 Japanese beer in Oceania.

In November 2010, we entered into an alliance with Maeil Dairies Co., Ltd., a major dairy maker in South Korea, and began selling Sapporo-brand beers in earnest. In 2011, we briskly expanded sales, primarily to restaurants, supermarkets and convenience stores in Busan. We will continue to reinforce our alliance with Maeil Dairies to further broaden sales.

In Singapore, we had emphasized sales to the commercial market, supplying 60% of the Japanese restaurants there. But now, through the Pokka alliance, we aim to promote development of the beer business and quickly expand sales to all market corners. Singapore is the hub of Pokka’s solid overseas business platform for non-alcoholic drinks, and its strong sales network hinges on the household market. We will utilize this conduit to boost sales of beer to households. In Taiwan, we are the only Japanese brewery involved in local production, through an agreement with Taiwan Tobacco and Liquor Corporation. Sales are conducted through a local agent and are directed mainly toward the household market. We will continue efforts to expand sales in this market.

Sapporo Premium has maintained its position as the top Asian beer in the U.S. market for 26 straight years. We will strive to reinforce activities to acquire a bigger slice of the local market. We are confident of further growth because the Sapporo brand is no longer seen in the narrow perspective of a Japanese beer but has actually permeated the U.S. beer market in general.

2特集

Oceania

Activities in Asia-Oceania

Special Feature

The Sapporo Group has identified key markets—North America and the promising Asia-Oceania region—that will strengthen its growth trajectory and will strive to reinforce the Sapporo brand in local premium beer markets by emphasizing Sapporo Premium, the strategic product for international markets. At the same time, the Group will draw on synergies created overseas through the addition of Pokka Corporation to the Group to raise the Sapporo profile.

5 6

Activities in North America

Sapporo Beer’s Expanding Worldwide Presence

Sleeman Breweries Ltd.Sapporo U.S.A., Inc.

Operations in the United States, with a quarter-century of history, and in Canada, where subsidiary Sleeman Breweries Ltd. has production points, are pillars supporting business expansion and improved profitability of the Sapporo Group. These operations have delivered steady results. We will maximize the advantages afforded by having our own breweries and promote the creation of brands that symbolize the excellence of the Sapporo Group.

Asia-Oceania, particularly the pan-Pacific region, including Vietnam, where we just completed construction of the country’s own brewery (see pages 3-4), is in the spotlight as a launching pad for growth in the future.

CanadaUnited States

South Korea

Singapore and Taiwan

Ranked No. 3 in Canada, Sleeman is a leader in the premium beer market and vigorously markets its own brand as well as the Sapporo brand. Sleeman recorded a year-on-year increase in sales of its own brand in 2011, sustaining sales growth for a fifth consecutive year.

In July 2011, we concluded a licensing agreement with Coopers Brewery, Australia’s No. 3 brewery. Through local production of Sapporo Premium and enhanced sales opportunities, we will actively promote this product in the premium beer market, which is showing particularly strong growth, on our way to becoming the No. 1 Japanese beer in Oceania.

In November 2010, we entered into an alliance with Maeil Dairies Co., Ltd., a major dairy maker in South Korea, and began selling Sapporo-brand beers in earnest. In 2011, we briskly expanded sales, primarily to restaurants, supermarkets and convenience stores in Busan. We will continue to reinforce our alliance with Maeil Dairies to further broaden sales.

In Singapore, we had emphasized sales to the commercial market, supplying 60% of the Japanese restaurants there. But now, through the Pokka alliance, we aim to promote development of the beer business and quickly expand sales to all market corners. Singapore is the hub of Pokka’s solid overseas business platform for non-alcoholic drinks, and its strong sales network hinges on the household market. We will utilize this conduit to boost sales of beer to households. In Taiwan, we are the only Japanese brewery involved in local production, through an agreement with Taiwan Tobacco and Liquor Corporation. Sales are conducted through a local agent and are directed mainly toward the household market. We will continue efforts to expand sales in this market.

Sapporo Premium has maintained its position as the top Asian beer in the U.S. market for 26 straight years. We will strive to reinforce activities to acquire a bigger slice of the local market. We are confident of further growth because the Sapporo brand is no longer seen in the narrow perspective of a Japanese beer but has actually permeated the U.S. beer market in general.

2特集

Oceania

Activities in Asia-Oceania

Special Feature

The Sapporo Group has identified key markets—North America and the promising Asia-Oceania region—that will strengthen its growth trajectory and will strive to reinforce the Sapporo brand in local premium beer markets by emphasizing Sapporo Premium, the strategic product for international markets. At the same time, the Group will draw on synergies created overseas through the addition of Pokka Corporation to the Group to raise the Sapporo profile.

5 6

Details on Management Integration with Pokka Corporation

We plan to integrate Sapporo Beverage Co., Ltd. and Pokka Corporation in January 2013 and establish a new company named Pokka Sapporo Food & Beverage Ltd. We aim to develop the food and beverages segments into an essential business pillar and seek to build a new food value creation group that can provide products geared to people of all ages.

January 2013: Business Commences

Since acquiring additional stock in Pokka Corporation in March 2011 and making it a consolidated subsidiary, we have been setting the stage for the creation of a domestically and internationally competitive food value creation group. We figured that the best approach for sharpening our competitive edge amid intense market competition and boosting corporate value would be to integrate our food and beverage segments, and toward this end, we decided to integrate Sapporo Beverage and Pokka. The new company will take the name Pokka Sapporo Food & Beverage Ltd.

Turning into a Strong Pillar

The establishment of Pokka Sapporo Food & Beverage Ltd. will turn the food and beverages segments into a strong pillar of operations comparable to the alcoholic beverage and real estate segments. We will draw on the respective strengths of Sapporo Beverage and Pokka, maximizing synergies to reinforce the segment. We have set numerical targets—net sales of ¥170 billion and operating income of ¥8.5 billion—for 2016 and expect segment sales to account for about 30% of consolidated sales. We will build a new food value creation group that can provide products geared to people of all ages. We have not yet finalized the integration method for the new company and some details are still outstanding. Information will be disclosed as soon as decisions are made.

3

Q1　How did you decide on the name for the new company?A1　The new company is the fusion of two companies that will reinforce the food and beverages segments and anchor a new food value creation group. Food is expected to be a driver of growth for the Group, so “food” is an important component of the name, and the Pokka brand is well-established in the food business, so “Pokka” precedes “Sapporo.”

Q2　How will the new company be formed?A2　We aim to establish the new company—Pokka Sapporo Food & Beverage—in April 2012 under an integration-in-progress format. After this, we will establish divisions, such as a management strategy division charged with formulating business strategies, and gradually set up the necessary corporate structure. The integrated company will be fully operational as of January 2013.

Q3　What will happen to the products of each company?A3 We will draw on the already-strong product brands of both companies and consider the best product lines that have captured solid support from consumers. At the same time, we will consider product development geared toward customer tastes and brand growth under the banner of the new company.

Q4　What will the Group structure look like?A4　The Group will be structured in the following way:

Management Integration Q&A

Special Feature

Sapporo Beverage

Current Mainstays

PokkaOriginal Products

Ribbon Citron(originally marketed asCitron)Debuted onJune 10, 1909

Starting Points! Original Products and Current Mainstays

Pokka LemonDebuted in February 1957

Sapporo Group Management Co, Ltd.

Sapporo Breweries Limited

Sapporo International Inc.

Pokka Sapporo Food & Beverage Ltd.

Press conference on November 29, 2011

Integrated company ready for business January 2013

Name changed January 2012 (see page 9 for details)

Function-SharingCompany

OperatingCompanies

Sapporo Lion Limited

Sapporo Real Estate Co., Ltd.

Holding Company/Group HeadquartersSapporo Holdings Limited

★New Sapporo Group Structure

7 8

Details on Management Integration with Pokka Corporation

We plan to integrate Sapporo Beverage Co., Ltd. and Pokka Corporation in January 2013 and establish a new company named Pokka Sapporo Food & Beverage Ltd. We aim to develop the food and beverages segments into an essential business pillar and seek to build a new food value creation group that can provide products geared to people of all ages.

January 2013: Business Commences

Since acquiring additional stock in Pokka Corporation in March 2011 and making it a consolidated subsidiary, we have been setting the stage for the creation of a domestically and internationally competitive food value creation group. We figured that the best approach for sharpening our competitive edge amid intense market competition and boosting corporate value would be to integrate our food and beverage segments, and toward this end, we decided to integrate Sapporo Beverage and Pokka. The new company will take the name Pokka Sapporo Food & Beverage Ltd.

Turning into a Strong Pillar

The establishment of Pokka Sapporo Food & Beverage Ltd. will turn the food and beverages segments into a strong pillar of operations comparable to the alcoholic beverage and real estate segments. We will draw on the respective strengths of Sapporo Beverage and Pokka, maximizing synergies to reinforce the segment. We have set numerical targets—net sales of ¥170 billion and operating income of ¥8.5 billion—for 2016 and expect segment sales to account for about 30% of consolidated sales. We will build a new food value creation group that can provide products geared to people of all ages. We have not yet finalized the integration method for the new company and some details are still outstanding. Information will be disclosed as soon as decisions are made.

3

Q1　How did you decide on the name for the new company?A1　The new company is the fusion of two companies that will reinforce the food and beverages segments and anchor a new food value creation group. Food is expected to be a driver of growth for the Group, so “food” is an important component of the name, and the Pokka brand is well-established in the food business, so “Pokka” precedes “Sapporo.”

Q2　How will the new company be formed?A2　We aim to establish the new company—Pokka Sapporo Food & Beverage—in April 2012 under an integration-in-progress format. After this, we will establish divisions, such as a management strategy division charged with formulating business strategies, and gradually set up the necessary corporate structure. The integrated company will be fully operational as of January 2013.

Q3　What will happen to the products of each company?A3 We will draw on the already-strong product brands of both companies and consider the best product lines that have captured solid support from consumers. At the same time, we will consider product development geared toward customer tastes and brand growth under the banner of the new company.

Q4　What will the Group structure look like?A4　The Group will be structured in the following way:

Management Integration Q&A

Special Feature

Sapporo Beverage

Current Mainstays

PokkaOriginal Products

Ribbon Citron(originally marketed asCitron)Debuted onJune 10, 1909

Starting Points! Original Products and Current Mainstays

Pokka LemonDebuted in February 1957

Sapporo Group Management Co, Ltd.

Sapporo Breweries Limited

Sapporo International Inc.

Pokka Sapporo Food & Beverage Ltd.

Press conference on November 29, 2011

Integrated company ready for business January 2013

Name changed January 2012 (see page 9 for details)

Function-SharingCompany

OperatingCompanies

Sapporo Lion Limited

Sapporo Real Estate Co., Ltd.

Holding Company/Group HeadquartersSapporo Holdings Limited

★New Sapporo Group Structure

7 8

In January 2012, Yebisu Garden Place Co., Ltd. becomes Sapporo Real Estate Co., Ltd.

Yebisu Garden Place is responsible for the real estate segment of the Sapporo Group. On January 1, 2012, the company was renamed Sapporo Real Estate. The change puts the company’s connection to the Sapporo Group front and center and underpins enhanced corporate value.

CJ Oishii Makkoli (Pink Grapefruit) is a new-sensation, fruity, makkoli (Korean rice wine) beverage developed in cooperation with Cheil Jedang Corp. (CJ), the largest food company in South Korea. It hit store shelves on January 18, 2012. Makkoli is characterized by a tangy, acidophilus-derived fizziness and naturally delicate sweetness. This newly developed drink contains 15% pink grapefruit juice, which gives the beverage a bracing citrus fragrance and a refreshing taste.

In the home country, drinking makkoli from a can is practically unheard of, so there were only a few breweries making cans of makkoli in South Korea. We had to start from scratch, beginning with which country was going to produce the drink and even installing equipment and improving quality control measures once the location had been determined. This marked the first time that Sapporo Breweries crossed borders on joint development. Previously, most makkoli products in Japan were plain, 6%-alcohol drinks made with artificial sweeteners and nearly identical to each other. Our goal was to attract a really wide market that was not limited to people who already drank makkoli but included people who had an interest in low-alcohol beverages and women who tend to be beauty- and health-conscious. So we emphasized natural sweetness, aroma and tanginess, kept the alcohol content to around 3%, and used 15% real pink grapefruit juice. Before the launch, we started promoting fruity makkoli cocktails to commercial establishments. The idea was to get people to try the drink at a restaurant or pub with the intention that they would be keen to buy the cans in January. Later, we will grow the business in a typically Sapporo style to attract the attention of both household and commercial markets. We are planning television commercials and large-scale sampling events and will run marketing campaigns targeting women, for maximum results.

Toward Realization of New Management Framework Inside Scoop

on DevelopmentUnderground Tours at Yebisu Garden Place by Tokyo Energy Service

To achieve the targets—¥50 billion in net sales and ¥15 billion in operating income—for the real estate segment as stated in the Sapporo Group’s New Management Framework for 2016, we will begin looking into approaches to boost future earnings and will focus on measures to enhance the value of excellent property holdings, mainly through redevelopment of the Seiwa Ebisu Building and the Sapporo Ginza Building and renewal at Yebisu Garden Place. We will continue to boost tenant satisfaction and work tirelessly to realize our management philosophy regarding the community-building efforts that offer visitors an enjoyable time in comfortable surroundings.

Tokyo Energy Service Co., Ltd., which provides heating and cooling services to Yebisu Garden Place, has drawn attention amid heightened environmental awareness for its efficient use of energy. In response, the company is conducting general tours of its underground heating and cooling facilities. In August 2011, the company acquired ISO 50001 energy management certification, a first in Japan’s energy and real estate sectors. Efforts will continue to be directed toward enhanced energy efficient and better environmental policies.

Mikiko IumeMakkoli PR ManagerCorporate Communication Department,Sapporo Holdings

Debut of CJ Oishii Makkoli (Pink Grapefruit)

New Makkoli Developed Jointly with Largest Food Company in South Korea for the Japanese Market

CJ Oishii Makkoli (Pink Grapefruit) 350ml canSuggested retail price: ¥217 (pre-tax)Ingredients: Grapefruit juice, rice, rice koji, wheat koji, saccharides

Product Introductions

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In January 2012, Yebisu Garden Place Co., Ltd. becomes Sapporo Real Estate Co., Ltd.

Yebisu Garden Place is responsible for the real estate segment of the Sapporo Group. On January 1, 2012, the company was renamed Sapporo Real Estate. The change puts the company’s connection to the Sapporo Group front and center and underpins enhanced corporate value.

CJ Oishii Makkoli (Pink Grapefruit) is a new-sensation, fruity, makkoli (Korean rice wine) beverage developed in cooperation with Cheil Jedang Corp. (CJ), the largest food company in South Korea. It hit store shelves on January 18, 2012. Makkoli is characterized by a tangy, acidophilus-derived fizziness and naturally delicate sweetness. This newly developed drink contains 15% pink grapefruit juice, which gives the beverage a bracing citrus fragrance and a refreshing taste.

In the home country, drinking makkoli from a can is practically unheard of, so there were only a few breweries making cans of makkoli in South Korea. We had to start from scratch, beginning with which country was going to produce the drink and even installing equipment and improving quality control measures once the location had been determined. This marked the first time that Sapporo Breweries crossed borders on joint development. Previously, most makkoli products in Japan were plain, 6%-alcohol drinks made with artificial sweeteners and nearly identical to each other. Our goal was to attract a really wide market that was not limited to people who already drank makkoli but included people who had an interest in low-alcohol beverages and women who tend to be beauty- and health-conscious. So we emphasized natural sweetness, aroma and tanginess, kept the alcohol content to around 3%, and used 15% real pink grapefruit juice. Before the launch, we started promoting fruity makkoli cocktails to commercial establishments. The idea was to get people to try the drink at a restaurant or pub with the intention that they would be keen to buy the cans in January. Later, we will grow the business in a typically Sapporo style to attract the attention of both household and commercial markets. We are planning television commercials and large-scale sampling events and will run marketing campaigns targeting women, for maximum results.

Toward Realization of New Management Framework Inside Scoop

on DevelopmentUnderground Tours at Yebisu Garden Place by Tokyo Energy Service

To achieve the targets—¥50 billion in net sales and ¥15 billion in operating income—for the real estate segment as stated in the Sapporo Group’s New Management Framework for 2016, we will begin looking into approaches to boost future earnings and will focus on measures to enhance the value of excellent property holdings, mainly through redevelopment of the Seiwa Ebisu Building and the Sapporo Ginza Building and renewal at Yebisu Garden Place. We will continue to boost tenant satisfaction and work tirelessly to realize our management philosophy regarding the community-building efforts that offer visitors an enjoyable time in comfortable surroundings.

Tokyo Energy Service Co., Ltd., which provides heating and cooling services to Yebisu Garden Place, has drawn attention amid heightened environmental awareness for its efficient use of energy. In response, the company is conducting general tours of its underground heating and cooling facilities. In August 2011, the company acquired ISO 50001 energy management certification, a first in Japan’s energy and real estate sectors. Efforts will continue to be directed toward enhanced energy efficient and better environmental policies.

Mikiko IumeMakkoli PR ManagerCorporate Communication Department,Sapporo Holdings

Debut of CJ Oishii Makkoli (Pink Grapefruit)

New Makkoli Developed Jointly with Largest Food Company in South Korea for the Japanese Market

CJ Oishii Makkoli (Pink Grapefruit) 350ml canSuggested retail price: ¥217 (pre-tax)Ingredients: Grapefruit juice, rice, rice koji, wheat koji, saccharides

Product Introductions

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