Japan: Combined shipments in Japan of beer and similar alcoholic products by the nation's five major brewers fell 8.1 % in March from a year earlier for the third straight month of year-on-year decline, according to industry data released Tuesday, April 12, 2005 by Kyodo News.

Kirin Brewery Co., Asahi Breweries Ltd., Suntory Ltd., Orion Breweries Ltd. and Sapporo Breweries Ltd., a subsidiary of Sapporo Holdings Ltd., shipped together 37.84 million cases of beer, "happoshu" low-malt beer and a beer-like sparkling alcoholic beverage, called "third-category" beer. One case holds 12.66 liters, or the equivalent of 20 633-milliliter bottles.

Industry officials attributed the fall to lower-than-usual temperatures during the month as well as higher retail prices following the abolition of rebates brewers had paid to wholesalers in proportion to sales. Although Japan's beer brewers had long provided such rebates to wholesalers, they stopped the sales incentive in January. The stoppage has forced rises in retail prices, particularly at large-scale discount stores.

Shipments of third-category beer alone jumped 55.1 % to 3.01 million cases. The drinks took an 8.0 % share of the domestic market for beer and the like, following an 8.1 percent in February and a record 8.8 % in January. In contrast, beer shipments fell 6.6 % to 21.62 million cases and happoshu shipments dropped 17.9 % to 13.21 million cases for the eighth successive monthly fall.

The increasing popularity of the third-category drinks, which cost less, has continued affecting sales of beer and happoshu. Shipments of such drinks are expected to continue growing for the time being, industry officials said. Kirin will this month enter the market, which is held by Sapporo and Suntory. Asahi will soon follow suit. Third-category drinks are subject to lower liquor taxes as they do not contain malt or wheat, which are the main ingredients in conventional beer.

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