Tough market conditions and expensive price tag discouraged Japanese beverage firm Asahi Breweries from further participating in the $11 billion demerger plan of Foster's beer division that carries the VB, Carlton, Draught and Cascade brands.

In a conference held in Japan on Tuesday night, Asahi president Naoki Izumiya declared that his company is no longer interested in the beer holdings of Foster's, citing that "the price is expensive and recently (Australia's) market is looking tough."

Foster's had announced in 2010 that it would separate its beer division from its worldwide wine businesses and almost immediately, talks swirled that a major brewing firm would snatch up the assets to be divested.

Experts said that Asahi and SABMiller emerged as top contenders for the planned sale, with the Japanese brewer a more serious bidder as analysts noted that Japanese players in the brewery and food manufacturing sector are looking to penetrate overseas consumer goods businesses.

The sector's goal, experts said, is to gain exposure that can be utilised in dealing with Japan's stalled food processing industry.

That goal saw rivals Asahi and Kirin racing to secure billion-dollar acquisitions yet the former, following its $1.185 billion takeover of Schweppes Australia's soft drink operations, is reportedly eyeing other growth possibilities outside the country.

In an interview with Reuters last year, Izumiya revealed that Asahi is working on plans to expand its interests in South Korea, with the beverage firm Lotte Group, and in China, with Tsingtao Brewery, where the Japanese firm already maintains considerable holdings.

The new development on Foster's planned demerger further raises interests on the company's scheduled release of its half year results next week, which is widely anticipated to give out details on the sale of its beer division.