Japan: Asahi and Kirin’s new joint distribution partnership to reduce costs by several hundred million yen

Asahi Breweries Ltd. and Kirin Holdings Co. will jointly distribute some beverages in Tokyo to cut costs and emissions at the nation’s two largest beer makers, Bloomberg reported on June, 30.

The joint deliveries using light-duty trucks in six of Tokyo’s 23 wards will begin from Aug. 29 and will be expanded at the end of October, according to a statement from the companies. Asahi and Kirin will also jointly collect containers such as bins and kegs in some areas of the country, they said.

Asahi and Kirin are looking to lower expenses as a shrinking population saps demand for beer in Japan. The partnership will reduce costs by several hundred million yen, or several million dollars, Asahi Breweries Executive Vice President Kazuo Motoyama said. The main purpose is to help the environment by reducing carbon emissions, he said.

Shipments of regular, low-malt and alternative beers fell 1.3 percent in the first five months of this year, according to data provided by the two Tokyo-based companies. Brewery sales have declined by about 20 percent since a 1994 peak, the data showed.

01 July, 2011