E-Malt.com News article: Japan: Three major Japanese brewers saw their group sales decline in 2005

Three major Japanese brewers saw their group sales decline in 2005 as their happoshu low-malt beers lost popularity following the introduction of new beer-like beverages, according to their sales figures released by Friday, 17 February 2006, Kyodo News communicated.

Consolidated sales fell 1.4 percent from the previous year to 1.63 trillion yen at Kirin Brewery Co., 1.0 percent to 1.43 trillion yen at Asahi Breweries Ltd. and 8.3 percent to 453.67 billion yen at Sapporo Holdings Ltd.

The volume of happoshu sales plunged by more than 20 percent at the three brewers, affected by brisk sales of so-called "third-category" beer products.

Kirin and Asahi joined the third-category beer market last April after Sapporo created it. Kirin took the top share of the market as sales exceeded its target by 40 percent, while Asahi failed to achieve its sales target.

Kirin took advantage of its strong third-category beer sales and smooth drug division sales to boost group operating profit 2.1 percent to a record 111.71 billion yen.

But Asahi and Sapporo posted operating profit drops due to sluggish sales of regular beer and happoshu. ADV

The three brewers expect to increase both sales and profit in 2006. Kirin projects group net profit this year to rise 5.3 percent from the previous year to 54 billion yen on 1.67 trillion yen in sales, up 2.3 percent.

Asahi expects to expand net profit by 11.6 percent to 44.50 billion yen on 1.50 trillion yen in sales, up 4.5 percent. At Sapporo, net profit is forecast to rise 10 percent to 4 billion yen as sales increase 2 percent to 465 billion yen.


17 February, 2006