Asahi plans to sell more inexpensive beer
That’s desperate. In mid-January 2013 Asahi Breweries said it is aiming to increase beer and beer-like drink sales in the Japanese market by 0.5 percent this year to the equivalent of 164 million cases (a case holds 20 bottles of 0.633 litres each). Asahi will aim for the increase by selling more inexpensive, so-called third-category beer (a non-malt, carbonated beverage with a beer-like flavour and alcohol strength of 5% to 6% ABV).
By category, the key unit of Asahi Group Holdings will seek to maintain sales of regular beer at last year’s level while targeting a 4.9 percent growth for third-category beer. It expects sales of "happoshu" low-malt beer to decline 6.5 percent, it was reported.
In 2012, the company’s overall sales of beer and beer-like drinks fell 1.7 percent to 163.2 million cases, although regular beer sold well. That compares with an industry-wide 1.0 percent decline to 438.1 million cases in the year, the eighth straight year of decline.
Still, Asahi managed to defend its number one position in the Japanese beer market in terms of volume for the third consecutive year, according to Japanese media on 16 January 2013.
Asahi maintained a market share of 37.5 percent, compared to Kirin’s 35.6 percent market share.
With changing consumer tastes, weak economic growth and an aging population, the Japanese beer industry has seen price-conscious consumers trade down from standard lager to economy lager, and with retailer competition, this has contributed to a significant decrease in average beer prices.
According to data published by the Canadian Ministry of Agriculture in 2012, between 2006 and 2011, the sales volume of standard lager in Japan fell 5.7 percent annually, while economy lager grew 4.4 percent and premium lager grew 10.1 percent.
Low/non-alcohol beers saw substantial annual growth at 39.1 percent between 2006 and 2011. Indeed, low/non-alcohol beer is rising in popularity and is expected to increase in volume sales by a total of 19.7 percent from 2012 to 2016. Economy beer is forecast to grow by 2.8 percent, while standard beer is expected to decline by 7.2 percent.
Apparently, Asahi is doing the right thing in following consumer demand, but financially it will prove tough going.
