The Japanese government in May decided to impose a higher tax on happoshu, which had formerly been in a lower tax category under Japanese liquor laws. However, Japanese breweries have introduced new low-malt beer products with emphasis on healthiness. The new products are selling explosively in Japan and are a real breakthrough in the beer market, said the Japanese press.

Asahi Breweries will introduce its new "happoshu" Asahi Aqua Blue from July 19. Aqua Blue has a 50% reduced sugar content and contains more minerals and tasty extracts than Asahi Honnama beer. A PR spokesman for Asahi said confidently, "In order to successfully blend the satisfying taste and healthy ingredients, we extended the development period. After many twists and turns, we came up with a totally brand new 'happoshu.'"

Suntory had already initiated the trend toward healthy "happoshu" last October with Diet. The company cut 50% of the calories and 70% of the sugar from the preceding "happoshu." According to a Suntory spokesman, "Diet is attracting more women drinkers. This year, we are expecting a 50% increase in sales to 10 million cases of beer."

Kirin Brewery last April introduced Tanrei Green Label with 70% less sugar. Then in February, the company succeeded in reducing by 90% the purines in its new "happoshu" Tanrei Alpha. Kirin says its Tanrei Green Label is selling well. "This year we are expecting a 17.6% increase in sales; that's 15.4 million cases more than the previous year," said a spokesman.

Meanwhile, Sapporo Breweries started selling Hokkaido Nama Shibori Half & Herb, made of herbs in March.

Hideki Morioka, a senior analyst in the equity research department of Mitsubishi Securities, who knows the beer industry well, says, "In the first quarter of this year, the beer sales of the four major Japanese breweries showed a 13.5% drop compared with the same period of the previous year. On the other hand, 'happoshu' sales increased 12.8% for the same term, thus compensating for beer sales. Healthy 'happoshu' is contributing to their sales.” “With the higher tax now being imposed, brewers are looking to make value-added products with a better taste and functionality. They're all looking for the hit product, and now that Asahi has joined the fray, we may see big competition pretty soon."

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