The second largest Japanese beer maker, Kirin Brewery, is to increase sales of beer and low-malt happoshu by 0.1% up to 198.3 million cases in 2003, Just-drinks.com reported. The forecast rise follows a fall of 1.5% last year.

Like Asahi, the market leader, Kirin is currently assessing how it will react to the rise in duty on happoshu scheduled to be implemented in May. Kirin said it expected its beer and happoshu brands would outperform a general declining trend in the total market.

Kirin is forecasting a 3% decline in the happoshu sector as a whole in 2003. The company is expected to raise prices in response to the tax increase. Kirin president, Koichiro Aramaki said: "We may have no choice but to pass (the tax hike) on to prices. We expect the negative effects (on our business) will be considerable."

09 January, 2003