Tokyo, Sept. 28 (Jiji Press)–Major Japanese beer companies are revamping flagship products and reclassifying quasi-beer items as beer as they prepare for intensifying competition following Thursday’s unification of liquor taxes on beer and related products. As the tax rate change will narrow the price differences among beer, “happoshu” quasi-beer products and beer-like beverages known as third-segment beer, demand is expected to shift back to beer, analysts said. Beer and related products are currently classified into three categories based chiefly on the ratio of malt content, with beer having the highest tax rate so far. The tax rates have been gradually revised since 2020. Beginning Thursday, the tax on beer will decrease by about 9 yen per 350-milliliter can, while the tax on happoshu and third-segment products will increase by about 7 yen. These changes are expected to be reflected in retail prices. As many consumers are expected to shift back to beer, Asahi Breweries Ltd. has revamped its mainstay Super Dry beer. Kirin Brewery Co. has renewed its “Ichiban Shibori” beer and launched one of its largest marketing campaigns. Sapporo Breweries Ltd. will promote its flagship Black Label beer at a members-only store in Tokyo’s upscale Ginza district. Suntory Spirits Ltd. will reclassify its “Kinmugi” beer-like beverage, which holds a significant share in the third-segment market, as a beer, while pricing it lower than rivals’ mainstay beer products. “We’ll respond to the need to enjoy satisfaction at a reasonable price,” Suntory Spirits President Eiichiro Nishida said. In similar moves, Asahi Breweries’ “Clear Asahi” beer-like drink, Kirin Brewery’s “Honkirin” beer-like beverage and Sapporo Breweries’ “Mugi to Hop” beer-like product will also be repositioned as beer. The liquor tax rate change is also seen as a commercial opportunity for retailers. Earlier this year, supermarket operator Ito-Yokado Co. and homeware store chain Cainz Corp. launched beer products under their respective private brands, priced several tens of yen lower than those of major beer makers. “We reduced the cost by outsourcing manufacturing to overseas makers and reviewing packaging materials,” an Ito-Yokado official said. END [Copyright The Jiji Press, Ltd.]
