E-Malt.com News article: Japan: Low-malt happoshu beer in disgrace with both consumers and brewers

Three of Japan’s major beer breweries plan to greatly reduce their business in happoshu low-malt beers, which have been flogged in the marketplace by less expensive "third-category" beer-like drinks, The Yomiuri Shimbun reported on January, 18.

Suntory Holdings Ltd. and Sapporo Breweries Ltd. will in principle discontinue developing new happoshu products, only making exceptions for specific regional and seasonal products, sources said.

Asahi Breweries Ltd. will reduce its happoshu production capacity by about 20 percent and shrink its happoshu sales division.

Happoshu contains a lower percentage of malt than regular beer, which contributed to their having a lower rate of alcohol tax. The first happoshu product was Suntory's Hops Nama, which was released in 1994. Other breweries followed with similar products.

With a 350-milliliter can of happoshu costing more than 40 yen less than regular beer, sales increased rapidly and in 2003 accounted for about 40 percent of the market for beer and beer-like drinks.

However, consumers became less enthusiastic about happoshu as its alcohol tax was increased twice, and after third-category beer - which uses little or no malt and is about 20 yen cheaper than happoshu for a 350-milliliter can - was put on sale.

Happoshu's market share dropped to 17 percent in 2010.

The three companies will continue to produce existing happoshu products, according to the sources.

Meanwhile, Kirin Brewery Co., producer of the still-popular Tanrei happoshu brand, will continue to be active in the business, according to a Kirin spokesman.


19 January, 2011