14 December, 2005

Japan: Nation's beer battle between Asahi and Kirin

Asahi Breweries Ltd. managed to stay No. 1 with 39 % of the overall beer and near-beer market in October this year. But the success of Kirin's Nodogoshi Nama third beer--2.8 million cases against Asahi Shin Nama's 1.27 million--was so great that Kirin's overall market share closed to within two points of Asahi, according to industry officials. One case is counted as 20 633 milliliter bottles.

Kirin had the top share for 47 years until Asahi passed it in 2001.

In September, the two breweries were the closest in about three years, with the difference estimated to be less than one point. Asahi retaliated quickly with a November rollout of Shin Nama 3, a revamped version of the original. Industry officials called the counterstrike "unusually quick."

Both Asahi and Kirin entered the third-beer market in April, with Shin Nama and Nodogoshi Nama, respectively. It was only six months before Asahi introduced a new version in an attempt to bolster weak sales. "We increased soybean peptides and made a more refreshing taste," a company official said of Shin Nama 3.

Industry officials said the first generation did not sell well because it tasted similar to beer and failed to stand out compared with other products.

Asahi has lowered shipment targets for 2005 to 18.5 million cases from 22 million.

Kirin's Nodogoshi Nama held the top share of the third-beer market during the nine months through September, with 33.7 percent. Shipment plans for this year have been expanded to 30 million cases from 19.7 million. Kirin President Koichiro Aramaki sees the company in range of winning back the top position. "For a long time, we were chasing," he said. "At last, we can see the back (of Asahi)."

However, Kirin is still weak in its main product, regular beer.

Asahi, with Super Dry, held 49.4 percent of the beer market during the nine months through September. That compares to Kirin's 30 percent with Ichiban Shibori. Regular beer accounts for more than half of the overall beer and near-beer market.

As demand for regular beer expands during the year-end and new year season, Asahi is likely to stay in first place for at least the current year.

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