Japan: Suntory to raise restaurant-use beer prices in April

Suntory Ltd. said it will raise the prices of its beer and quasi-beer products used at restaurants and pubs on April 1, according to Jiji Press, January 8.

As a result, the prices of 500-milliliter bottled products, including The Premium Malt's beer, will go up by 3 to 5 pct.

The hikes reflect soaring malt and hop prices amid growing global demand for biofuels.

Suntory, meanwhile, decided to keep the prices of its canned beer and quasi-beer products unchanged at least until end of June, the company said. It is possible to cut production costs for canned products, a Suntory spokesman said.

Due mainly to the soaring materials procurement costs, three rival brewers--Kirin Brewery Co., Asahi Breweries Ltd. and Sapporo Breweries Ltd. earlier announced their plans to carry out price hikes for almost all of their beer and beer-like products in February, March and April, respectively.

Industry sources said that Suntory may see its market share rise as it opted to keep its canned product prices unchanged.

11 January, 2008