Japan: Kirin gains competition ground on Asahi Breweries

Kirin Brewery Co. gained ground on Asahi Breweries Ltd. in the competition for sales of beer and similar products in 2005, with their respective market shares coming to an estimated 36 percent and 39 percent, Japan Economic Newswire communicated on January 12.

The sales of beer, "happoshu" low-malt beer and the new beer-tasting alcoholic beverage by industry leader Asahi totaled 193.4 million cases last year, down 5.2 percent from the previous year, while those by Kirin edged up 0.3 percent to 178.5 million cases. One case holds 12.66 liters, the equivalent of 20 633-milliliter bottles.

The focal point of the competition was sales of so-called third-category products, which are cheaper than regular beer and happoshu as they fall into a lower tax bracket because of their ingredients. Both Asahi and Kirin broke into the fast-growing market for third-category beers in April last year.

Kirin sold strong sales in this category but Asahi struggled. This brought Kirin's sales to within a hair's breadth of those of top-seller Asahi in September, when there was only a 0.1 percent difference in their market shares.

For the 2006 year, Asahi aims to sell 200 million cases, up 3.4 percent from a year before, and Kirin 184.8 million cases, up 3.5 percent. These targets would keep Asahi in top spot, but Koichiro Aramaki, president of Kirin, said recapturing the largest market share is the company's main goal. Kirin had long been the top beer firm until it was overtaken by Asahi in 2001. Aramaki stated Kirin will further promote sales of happoshu and third-category products to "accelerate last year's sales momentum."

"We will intensively sell (regular) beer, which is our strongest product," said Koichi Ikeda, president of Asahi Breweries, adding his firm will strengthen sales of its flagship beer product "Super Dry."

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