Japan: All beer categories suffer from lower shipments in H1 2017

Japan's domestic beer shipments fell to a record low for the fifth first-half-year in a row, as all three segments of the category declined amid tax changes, according to local reports.

The first six months of this year marked the first time that beer, happoshu and third-category, all of which are defined by malt content, all posted falls, the Asahi Shimbun reported on July 13. Third-category - or new genre - beer had previously seen stronger demand as brewers launched new innovations in the lowest-priced segment.

Asahi Shimbun said the declines were partly due to an increase in retail prices under a new tax model that started on 1 June. The new law regulates heavy discounting at larger supermarkets in a bid to protect smaller alcohol outlets.

Total beer shipments fell 1.3% to 190.3 mln cases, the Asahi Shimbun reported, citing data from Japan's five major breweries, Suntory, Asahi, Kirin, Sapporoand Orion Breweries.

Regular beer, which has the highest malt content, was down 1.4%, happoshu fell by 2.4% and third-category beer slipped 0.7%.

Japan has an ongoing decline in beer consumption caused by Japan's ageing population. In 2016, domestic beer volumes in Japan fell by 3% as shipments from all five major brewers declined, according to local reports.

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