UPDATE 1-Asahi Brew profit up 9 pct in 2008, sees dip ahead

TOKYO, Feb 5 - Asahi Breweries, Japan's biggest beer maker, reported on Thursday a 9 percent rise in operating profit for 2008 as lower marketing expenses helped offset weak beer sales and higher raw materials costs, but it forecast a 3 percent profit decline this year.

Japanese brewers are faced with a shrinking domestic beer market due to an ageing population and diversifying tastes, and they have been increasingly looking overseas for future growth, acquiring businesses in Asia and elsewhere.

Japan's beer market fell 2.7 percent in volume terms in 2008, declining for the fourth straight year. Last year's beer demand was hurt in part by breweries' price hikes to pass on sharp rises in the costs of malt, corn and the packaging for their products.

The maker of "Super Dry" beer said last month that its domestic beer shipments had fallen 3.2 percent in 2008, a bigger drop than the overall market, though it managed to keep its top position with a 37.8 percent market share.

Asahi said its operating profit last year was 94.5 billion yen ($1.1 billion), roughly in line with its own forecast of 94 billion yen. It posted an 87 billion yen operating profit in 2007.

For this year, Asahi forecast its operating profit will dip nearly 3 percent to 92 billion yen. That compares with a median forecast of 94.8 billion yen in a Reuters Estimates poll of 17 analysts.

Having lagged behind rival Kirin Holdings in efforts to become a more diversified drinks maker with a bigger overseas reach, Asahi recently announced two major deals.

The firm said in December that it had agreed to buy British confectionery maker Cadbury's Australian beverage business for 550 million pounds ($781.9 million).

It said last month it would buy a 19.9 percent stake in China's Tsingtao Brewery from Anheuser-Busch InBev for $667 million.

Media have also reported that Asahi is one of the potential bidders for Anheuser-Busch InBev's South Korean unit.

Kirin, Japan's No. 2 beer maker, is scheduled to report results on Tuesday.

Shares of Asahi fell 27 percent in the past year to Tuesday, outperforming a 42 percent decline in the benchmark Nikkei average. ($1=.7034 Pound) ($1=89.39 Yen)