The unlisted Japanese company Suntory Ltd., said its beer sales dropped 7.6 %, while happoshu sales fell 6.1 % during the six-month period, according to Japan Times. Combined sales stood at 100.4 billion yen. "The impact of the happoshu tax hike is more severe than we anticipated," said Masao Tachiki, Suntory's senior managing director. "We initially thought the impact of raising the price 10 yen to 145 yen (for a 350-milliliter can) would be diluted as time passed. But it has very strong price sensitivity."

The company, which derives more than half its revenue from nonalcoholic beverages and its food businesses, said that group net profit for the half-year period nearly doubled to 11.28 billion yen, while revenue fell 2.8 % to 639.94 billion yen.
Operating profits rose by 0.7% to Y31.66 billion on group sales 2.8% down at Y639.94 billion. The company attributed the improved profitability to a successful cost-cutting programme.

Suntory is forecasting group operating profit of Y88 billion for the full 2003 fiscal year, 12% up on 2002, with net profit rising by 48% to Y30 billion and sales up 2.5% at Y1.419 trillion.