29 August, 2003

Japan total beer shipments, including low-malt "happoshu", dropped 12 % in July from a year ago, taking a heavy toll on breweries, which had already been hurt by a tax rise in May on happoshu that added to problems caused by a long economic slump, Reuters reported.

Japan's top two beer makers, Asahi Breweries Ltd and Kirin Brewery Co Ltd, cut their net profit estimates for the full year by 15-19 %, while Sapporo Holdings Ltd slashed its profit forecast by 77 %. "It was a double blow. First, the tax hike cooled sales of happoshu, then low temperature and rain chilled overall beer demand," said Kirin spokeswoman Satoko Yoshida.

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