Declining beer and happoshu sales in 2007

Sales of beer and quasi-beer beverages are expected to have declined in 2007 amid a flurry of new product launches.

Japan’s brewers will be scratching their heads in disbelief: what have they done to deserve this? They have tried to stimulate the consumption of beer and quasi-beers with a barrage of new products yet to no avail. The decline in beer consumption continues.

According to media reports, there were 23 brand releases in the beer and happoshu category in 2007. Still, it is estimated that total consumption in 2007 dropped nearly one percent over the record low of 497.5 million cases in 2006. Each case contains the equivalent of 20 633-ml bottles.

Beer companies are likely to see shipment targets not met for most newly released products.

The outlook remains grim. Three of Japan’s four major brewers project lower sales of beer and quasi-beer products in 2008 than in the previous year.

Suntory Ltd., the smallest of the four, was the only company that projected a sales increase. The company expects to increase its sales by 1.8 percent to 55.5 million cases, it was reported.

However, Asahi Breweries, the nation’s number two brewer, expects sales of 184 million cases, down 1.8 percent, while Kirin Brewery hopes to sell 185.6 million cases, which represents a drop of 0.4 percent over 2007.

Sapporo Breweries expects to sell 60.5 million cases, down 1.7 percent.

The brewers’ bearish projections are attributable in part to their planned price hikes due to a rise in the materials costs.