E-Malt.com News article: 2942

Japan: Japanese beer shipments failed in the first half of 2004 for the third straight year despite favourable weather and against industry expectations, figures from the nation's five main brewers showed on July 12, according to Reuters. The fall could prompt makers such as Kirin Brewery Co. Ltd. to cut their full-year volume outlooks, analysts said.

The brewers' combined shipments of beer and the popular low-malt alternative, "happoshu", fell 6.4 % in January-June from the same period a year earlier. That was in spite of expectations of a rebound in May, a year after a higher tax rate for happoshu was introduced. Combined shipments for May fell, however, as Japanese consumers turned increasingly to non-beer alternatives such as "chuhai", a drink based on Japanese shochu liquor and soda water.

Daiwa Institute of Research analyst Tsutomu Matsuno said he expected companies to revise down target sales although this would not necessarily affect their profit outlooks. "There won't be that much impact on profits since the companies have a lot of leeway to cut costs such as marketing costs," he said.

For the full year, top brewer Asahi Breweries Ltd., known for its flagship "Super Dry" beer, has projected flat growth for its full year beer and happoshu sales volume, after a 2.6 percent fall in 2003.

Number-two Kirin has forecast 2004 combined sales to rise 2.2 percent this year following a 7.6 percent slide last year. Both companies said their forecasts remain unchanged at least until August when half-year results are due. Of the two, Kirin had the harder time, with its first-half beer and happoshu shipments falling 6.6 percent, although its market share was little changed at 35.7 percent.

In contrast, Asahi's shipments edged down 0.6 percent and its market share rose to 41.7 percent from 39.3 percent in the same period last year.

Industry-wide regular beer shipments slid 3.4 percent, marking an eighth year of decline, but the drop narrowed to a single digit from double digits for the first time in 4 years.

Shipments of happoshu, which until May 2003 was taxed at half the rate of beer, fell 10.7 percent, down for a second year in a row, hurt by the higher tax and rival drinks such chuhai.

One of the notable losers was Sapporo Holdings Ltd., said Reuters, which posted the largest declines in all three categories of combined beer and happoshu, happoshu, and regular beer shipments. But Matsuno said the figures do not include its new beer-like product "Draft One", which sells for only 125 yen and is gaining popularity. Sapporo's happoshu shipments fell 32.3 % while Asahi grew 7.1 % from the same period a year ago.

Other brewers contributing to the data included Suntory Ltd., and Orion Breweries Ltd. Orion Beer Co., a brewery based in Okinawa Prefecture, southern Japan, registered a 3.6% rise in shipments to 1.94 m cases.


13 July, 2004