Liquor

January 2002

Facing an ongoing decline in demand for regular beer, the nation's major beer brewers are increasingly shifting their focus to low-malt beer. While Asahi Breweries Ltd. is focusing on its popular Honnama brand, Kirin Brewery Co. plans to introduce a number of new low-malt beer products this year, as Kirin lacks "a best-seller label." Beer brewers need to improve their profitability as well as expand market share, since a price war could increase their sales promotion costs at a time of deflation. In 2001, sales of low-malt beer accounted for 31.3% of the overall beer market, which encompasses both regular and low-malt beer, up 9.2 percentage points from the year-earlier level and topping 30% for the first time. Asahi replaced Kirin as the industry leader in shipping volumes of regular and low-malt beer on a taxable basis last year, the first time in 48 years. Meanwhile, Kirin plans to launch a number of law-malt beer labels this year and, next month, will release a new product priced 10 Yen lower than low-malt products, adding to the Kirin Tanrei label a month later a new product whose sugar content is reduced by 70%. But Kirin will give priority to securing a profit by achieving conservative goals, adding that discount sales will not benefit customers. Kirin aims to bolster profitability by exploiting the expertise of its group firms and devising marketing plans encompassing a broad range of its alcoholic beverages, including canned "chuhai" products. (January 17, the Nihon Keizai Shimbun)

Japanese brewers expect even stronger demand for low-malt beer during 2002. The four major brewers plan to sell a combined 568.9 million cases of regular and low-malt beer this year, up 2.3% from estimated sales for 2001, with demand for low-malt beer expected to rise and that for regular beer seen falling, sales target figures. Consumers' increasing shift from regular beer to the low-malt variety is likely to continue in 2002 because of the latter's lower prices. One case contains 20 633ml bottles. Sapporo Breweries Ltd. expects an 8.8% decline in sales of regular beer, the lowest projection among the four. The brewers expect a double-digit rise in annual sales of low-malt beer, with Asahi Breweries Ltd. targeting a leading 30.8% increase. For combined sales of low-malt and regular brew, Suntory Ltd. predicts the largest increase, at 7.4%. Kirin Brewery Co. in February will launch a new low-malt beer priced 10 Yen less than existing "happoshu" drinks. (January 11, the Nihon Keizai Shimbun)