Japan: Dramatic April Japanese beer and beer-like drinks shipments regression

Shipments of beer from Japan's five top brewers in April sank below 50 percent of the market for beer and beer-like drinks for the first time ever, due partly to a stronger demand for more affordable non-malt beer-like drinks, called "third-category beers," Kyodo News announced Tuesday May 16, relying on industry figures.

Beer shipments accounted for 48.2 percent of the beer and beer-like beverages market, which also includes "happoshu" low-malt beers, according to the Brewers Association of Japan and the brewers - Kirin Brewery Co., Asahi Breweries Ltd., Sapporo Breweries Ltd., Suntory Ltd. and Orion Breweries Ltd.

The overall market totaled the equivalent of 44.19 million cases, down 5.5 percent from the year before. One case holds 20 633-milliliter glass bottles.

Of the total, the shipments of third-category beer shot up 39.6 percent to the equivalent of 12.68 million cases.

The third-category beer shipments eclipsed those of happoshu drinks for the first time ever, with the happoshu shipments shrinking 24.0 percent to 10.20 million cases.

The Finance Ministry raised the liquor tax rate for third-category beers on May 1.

Consumption of third-category beer in April "appears to have received a boost from a one-off upsurge in demand prior to the tax hike" as consumers scrambled to buy the products while the tax rate was lower, an industry official said.

As a result, third-category beer accounted for 28.7 percent of the beer and beer-like drinks market in April, threatening to climb above the 30 percent line. In contrast, the market share of happoshu drinks stood at 23.1 percent.

The consumption of third-category beer in May will likely take a negative backlash from April's jump in demand, some industry watchers said.

But an official at a major brewer said, "Third-category beers remain popular partly because some supermarkets have kept their retail prices unchanged even after the tax rate hike."

Consumers continue to be price-conscious in selecting what beer and beer-like products they drink, the official said.