Japan, Tokyo: Japanese beer maker, Kirin Brewery Co. is considering whether to sell a beverage that tastes like beer, in a move that may help it advance into the popular product field, a Kirin spokeswoman said Friday, November 19. The spokeswoman said the nation's No. 2 beer maker in terms of shipments is preparing to fight competition to win consumers, but it hasn't decided yet whether it will enter the new field. Kirin still needs to map out a future demand outlook and review the government tax panel's proposal on liquor tax rates in future tax reforms, she said.

The nation's No. 3 beer maker, Sapporo Breweries Ltd. of Sapporo Holdings Ltd., has received a huge boost in profits from the February introduction of its beer-flavored "Draft One" beverage.

Draft One doesn't contain malt or wheat. That means that in tax terms, it is categorized as neither a beer nor a low-malt beer, freeing it from Japan's high taxes on beer. That translates into a price of Y125 per 350-milliliter can of Draft One, cheaper than Y145 for a low-malt, or "happoshu," beverage, before a compulsory 5% sales tax. Suntory Ltd. has sold a beerlike beverage called "Super Blue" since June. It is priced at Y125, the same as Draft One.

The industry's leader Asahi Breweries Ltd. has so far released no plans to introduce new low-priced beer alternatives that take advantage of the tax loophole.

21 November, 2004