Japan: Sapporo Breweries is expecting a 7% rise in 2007 Japanese sales

Sapporo Breweries Ltd. said it expects to sell 68 million cases of beer and beer-like beverages in Japan in 2007, up 7% from 2006, by aggressively marketing its premium beer lineup of Yebisu, Kyodo News International announced on January 11.

Sapporo, the country's No. 3 beer maker, said its sales in 2006 fell 10 percent to 63.83 million cases, mainly due to its poor sales of so-called "third-category" beer-like drinks. One case is equivalent to 12.66 liters of beer.

The Tokyo-based beer maker said its sales of cheap non-malt beer, using ingredients such as bean protein, stood at 16.63 million cases, down 76 percent from the previous year, although estimated industry-wide sales for such drinks saw an estimated increase of 21 percent during the same period.

While sales of regular beer and low-malt "happoshu" beer have been falling in Japan, the third-category beer products are rapidly growing as they are priced lower than beer due to a lower tax rate applied to them.

Also a new area growing recently in the Japanese beer market is higher-priced premium beer.

Sapporo said its 2006 sales of its Yebisu premium beer lineup hit an all-time high of 10.13 million cases since its introduction in 1890.

Sapporo President Masaru Fukunaga, speaking at a news conference in Tokyo, said, "The year 2007 will be a year to make a comeback by going on the offensive." Fukunaga said the company will release a new non-malt beer in February and a new type of Yebisu in March and another in April.

On Thursday, Suntory Ltd., a major Japanese beverage maker, also unveiled a business plan for 2007 and said it is aiming for a year-on-year increase of 4 percent in its beer sales, or 55 million cases.

Suntory, headquartered in Osaka, has been enjoying strong sales of its "The Premium Malt's" beer in recent months. Suntory said its sales of the premium beer, made from 100 percent barley and natural water, more than quadrupled from a year earlier to 5.5 million cases and will aim to sell 13 million in 2007.

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