Japan: Combined domestic shipments of beer and similar products by Japan's five major brewers fell 5.3 % in February 2005 compared to February 2004 for the second straight monthly drop, according to industry data released Thursday, March 10, Kyodo News communicated. The shipments of beer, "happoshu" low-malt beer and a beer-like sparkling alcoholic beverage, dubbed "third-category" beer, by Kirin Brewery Co., Asahi Breweries Ltd., Sapporo Breweries Ltd., Suntory Ltd. and Orion Breweries Ltd. totalled 29.71 million cases. One case holds 12.66 liters, or the equivalent of 20 633-milliliter bottles.

Meanwhile, beer shipments dropped 12.2 % to 15.29 million cases for the second consecutive month of double-digit declines. Happoshu shipments decreased 4.5 % to 12.02 million cases for the seventh successive monthly fall.

The shipments of third-category beer alone jumped 74.1 % to 2.4 million cases in the month. The drinks took an 8.1 % share of the domestic market for beer and the like, down slightly from a record-high 8.8 % share in January. Third-category drinks are becoming increasingly popular as they cost less. They are subject to lower liquor taxes as they do not contain malt or wheat, which are the main ingredients in conventional beer.

Industry officials attributed the fall to lower-than-usual temperatures during the reporting month and a rise in retail prices following the abolition of rebates brewers had paid to wholesalers in proportion to sales. Although Japan's beer brewers had long paid such rebates, they stopped the incentive in January.

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