Japan: Combined domestic shipments of beer and similar products by Japan's five major brewers fell 12.9 % in January this year, compared to January 2005, the first fall in two months, according to industry data released by Kyodo News on February 10. Japan's five major brewers are Kirin Brewery Co., Asahi Breweries Ltd., Sapporo Breweries Ltd., Suntory Ltd. and Orion Breweries Ltd. The sales of beer, "happoshu" low-malt beer and a beer-like sparkling alcoholic beverage, widely dubbed "third-category" beer, totalled 21.53 million cases. One case holds 12.66 liters, or the equivalent of 20 633-milliliter bottles.

Industry officials attributed the January data to a reaction to moves in December among many wholesalers to bolster the stock of alcoholic drinks prior to January's planned abolition of the rebates brewers pay in proportion to sales.

Although Japan's beer brewers had long paid such rebates to wholesalers, they stopped the incentive in January. The shipments of the third-category beer alone shot up to 1.89 million cases in the month, clinching a record 8.8 percent share of the domestic market for beer and the like.Third-category drinks are becoming increasingly popular due to cheaper prices as they are subject to lower liquor taxes due to the absence of malt and wheat in its ingredients.

The government levies a 24.20 yen tax for every 350 ml of third-category drink, compared with 77.70 yen for beer and 46.99 yen for happoshu of the same volume.

Meanwhile, beer shipments plunged 17.3 percent to 12.63 million cases in January, the first double-digit percentage fall in eight months since May 2004.

Happoshu shipments dropped 21.5 percent to 7.01 million cases, the sixth consecutive month of a year-on-year fall.

12 February, 2005