Japan: Sapporo Breweries Ltd. beer-like drink Draft One is a big hit with consumers. In legal terms, the drink is neither a beer nor the low-malt drink known as happoshu, The Yomiuri Shimbun revealed on December 20. It took Sapporo four years to develop Draft One. Made from peas, Draft One is expected to help bring an all-time high profit to Sapporo Holdings Co., which owns Sapporo Breweries, in its accounts settlement for the year ending December 31.

But the Tax Commission has advised the government to reexamine liquor taxes with a particular interest in beerlike drinks such as Draft One. Sapporo President Fukuda said he was strongly opposed to a tax raise. "Draft One is tapping new demand. We spent lots of money on its development," he said, commenting that raising taxes on something that was selling fast was too easy an approach, and inevitably would discourage businesses.

When asked about the success of Draft One, Sapporo President Sadao Fukuda listed five key concepts that represented consumer preferences: healthy, safe, reassuring, natural and environmentally friendly. "Draft One has a refreshing taste. It contains relatively few purine bodies, and it's priced low," he said, stressing its advantages.

Most brewers at his company believed in not using malt and wheat as ingredients when trying to create a beverage like Draft One, he said, referring to materials that typically give beer an astringent taste. Through trial and error, the engineers discovered that in lieu of malt and wheat, pea proteins met their needs. "Eliminating malt and wheat from the list of raw materials flew in the face of traditional brewing," he said.

He said technical know-how of Japan's oldest brewery had been handed down through generations of Sapporo brewers so successfully that the innovative idea of using peas came easily to the brewers.

Reviewing the beer industry, he said, "Alcohol consumption hasn't dropped significantly over the past several years, but total demand for beer and low-malt beverages has remained low." He questioned whether the industry as a whole may have failed to create beverages that would better suit consumer tastes.

According to Fukuda, "As long as we produce what consumers want, sales won't drop." Beer and low-malt beverages that are made from the highest-grade wheat and hops have a great taste and can satisfy consumers, he added.

In July 2003, Sapporo Holdings inaugurated four companies: Sapporo, Sapporo Beverage Co., Sapporo Lion Co. and Ebisu Garden Place Co. The business group aims to speed up decision-making and interactions between the group companies in an effort to increase its combined profits.

Fukuda said Sapporo had recently suffered from a blurred corporate identity. To improve its situation, he said all executives and employees should join together to face these difficulties. Recalling similar efforts, he said, "When Draft One went on sale, even plant workers stood in front of liquor shops to pitch the new brand. I believe such efforts earned us great success."

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