07 March, 2006

Japan: Kirin to go its own way in repricing beers after tax changes - report

Kirin Brewery Co will break tradition and price its beers independently of the three other major Japanese brewers once revised liquor tax rates take effect in May, the Nihon Keizai Shimbun reported over the weekend, according to AFX News from March 3.

With the tax on a 350ml can of beer slated to fall 0.7 yen, Asahi, Sapporo Breweries Ltd and Suntory Ltd plan to lower their shipment prices by 0.75 yen in May. But Kirin intends to reduce its shipment price by 1 yen, the report said.

For larger 633ml bottles, Kirin will cut the price just 1 yen, while the other three brewers will reduce prices 1.25 yen on a tax drop of 1.26 yen, it said.

Kirin's departure from the industry tradition of going along with others is thought to be driven by its desire to unseat Asahi as the market leader, the business daily said.

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