Japan's four biggest breweries are joining forces with the country's tobacco producers to lobby the government over potential tax rises. In previous years the producers have successfully staved off the threat of tax rises on cigarettes and a beer-like drink called happoshu. However, the weak state of the Japanese economy means the protesters are bracing themselves for defeat.

The situation is more serious for brewers, as increasing competition in the sector has already seen company profits fall. Happoshu currently attracts Y40 less tax than a can of beer. It is currently extremely popular with Japanese consumers as it is cheaper than beer, but this has sparked a fierce price war between brewers.

Kirin, Sapporo, Suntory and Asahi have organised protests across Japan in an attempt to dissuade the government from levying the tax. It is believed that the move will hit Kirin and Sapporo hardest as they depend most on sales of happoshu. However, all four companies expect sales to fall as a result as consumers turn to other similarly priced alcoholic drinks if the Government is successful.

09 December, 2002