Shipments of popular Japanese low-malt beer, which is cheaper than ordinary lager, is set to shrink this year for the first time since sales of the product began in 1994, industry leader Kirin Brewery said on November 11, according to BusinessReport. Sales of low-malt beer have been laid low by an unusually cool, wet summer, coupled with a recent tax hike on the product, called 'happoshu' (sparkling beverage), said Kirin spokeswoman Satoko Yoshida.

Combined shipments of happoshu by Japan's top five brewers are expected to shrink by 1.5 % this year to 2.54 million kiloliters, marking the first contraction of the happoshu market, she said. "The past summer was extremely cool and that depressed beer sales and happoshu sales in general," Yoshida said. "With the higher tax, happoshu's main appeal as an inexpensive beverage lessened," she said.

Happoshu looks, smells and tastes like lager beer and even has the same alcohol content but because it has malt content lower than 67 % or contains ingredients other than malt, hops, rice, corn, potatoes and sugar, it is not classified as beer by the finance ministry.

The government in May raised the tax on happoshu by about 10 yen (about R0,63) per 350-milliliter can, pushing up the retail price to 145 yen, still some 100 yen cheaper than regular canned beer.

Even after the tax rise, however, the lowest tax rate on happoshu is 134 250 yen per kiloliter, far below 222 000 yen imposed on regular beer.

Happoshu accounts for about 40 % of the overall Japanese 'beer' market. "We will launch various campaigns toward the end of the year to stimulate the market," Yoshida said, declining to disclose the planned campaigns.

14 November, 2003