Japan: Kirin Brewery Company, Limited announced on May 11, 2004 the summary of consolidated financial results for the first quarter of 2004 (January 1, 2004 - March 31, 2004). During the first quarter of 2004 (January 1, 2004 - March 31, 2004), sales in the alcohol beverages category were fairly steady, the company said. As a result, consolidated net sales were ¥326.4 billion, an increase of 3.6% compared with the same period in the previous fiscal year. Consolidated operating income increased 46.2% to ¥14.5 billion, and consolidated ordinary income increased 54.4% to ¥13.1 billion. Consolidated net income was ¥3.5 billion (US$31.3m), an increase of 341.3%.

Amid the changing environment within the alcohol business, Kirin continued to improve its earning capacity, focused on strengthening core brands to increase the value of the Kirin brand, and the value offered to consumers, primarily through its beer, happo-shu and chu-hi drink brands. In the happo-shu (low-malt beer) category, Kirin concentrated mainly on strengthening its key Kirin Tanrei brand, including Tanrei Green Label and Tanrei Alpha for health-conscious consumers, and Gokunama and Namakuro brands, featuring quaffable and cost saving concepts. New market-creating products were also launched, such as Kirin Honey Brown, a happo-shu that offers a unique taste by using honey as an ingredient. Kirin Honey Brown was released nationwide in February.

“In the beer category, which makes the largest contribution to increasing its corporate brand value, the Company maximized product brands by substantializing the value that consumers expect from beer.” To reaffirm brand value, a new series of TV advertisement was launched for the Kirin Lager brand, the exposure and establishment of which were further enhanced with the nationwide launch of Kirin Classic Lager can packages in 2003. For Ichiban Shibori, celebrating its fifteenth anniversary, the taste has been improved and the packaging redesigned to highlight higher quality though freshness. In chilled beer, marketing of Maroyaka Kobo and Latte Stout was strengthened with the aim of establishing a high-value beer category ahead of competitors.

In the burgeoning chu-hi category (a low-priced, fruit-flavoured alcoholic beverage), sales of Kirin Chu-hi Hyoketsu continued to remain strong.

In the international beer business, Kirin strengthened its Ichiban Shibori and Kirin Pure and Light brands. Utilizing technological synergies of the Kirin Group, Zhuhai Kirin President Brewery Co., Ltd. will start selling Haizhu Draft Beer, Kirin’s first draft beer to be sold in China, from April 2004.

“As a result of the above, sales in the alcohol beverages business totaled ¥207.2 billion, an increase of 2.0% compared with the same period in the previous fiscal year, with operating income of ¥7.9 billion (up 34.0%).”

12 May, 2004