Beer Hara-Kiri In Japan

Japan, once a hearty and dependable market for beer, has lost its taste for “the world’s most popular beverage” to a shocking degree and the county’s economic conditions aren’t helping.

Here’s the deal…

Fueled by recent price hikes in both retail and on-trade sectors, shipments of beer and quasi-beer in Japan dipped to a record low in the first half of the year.

Not good…

In 2017 shipments of beer and “beer-like” drinks in Japan fell for the 13th straight year. Beer shipments fell 2.9 percent, low-malt beer (think light beer) dropped 4 percent, and beer-flavored alcoholic drinks (we’re not even sure what these are) were down 1.5 percent.

And now according to recent figures released by the five major companies who dominate beer sales in Japan, Asahi Breweries Ltd., Kirin Co., Suntory Beer Ltd., Sapporo Breweries Ltd., Orion Breweries, total shipments of beer and quasi beer in the country dropped 3.6% to 183.37 million cases.

Strange times indeed when Japanese beer conglomerates continue to profit abroad only watch their flagship brands struggle at home.

According to Japan News the country’s overall beer shipments dipped 6.3%, following stricter rules on discount alcohol sales that’s impacting retail.

And wholesale prices for beers in Japan also rose this year, leading restaurants and bars to hike up beer prices.

Japan is still hoping to rejuvenate it’s shrinking domestic beer market though a new liquor tax law that allows breweries to use a wider range of ingredients such as fruits, herbs, dried bonito and kelp.

Japanese tax law which historically defines what a beer is through policy directives, also dropped the required content of malt from the previous 67% or more to 50% or more.

But the impact of Japan’s new liberalized liquor tax law is yet to be felt in a country that drinking beer less than ever.