Asahi to stop disclosing data for volume sales

Japan | Asahi Breweries will report beer sales by value rather than volume, starting with 2019 data. This will allow it to bow out of a costly battle for market share in Japan and free up resources for expansion abroad.

As was reported by the Nikkei Asian Review on 18 December 2019, Asahi’s President Kenichi Shiozawa projects a steep plunge in the size of Japan’s beer market from 2030 onwards. Therefore, Asahi will need to move away from an obsession with volume sales and market share.

The news site points out that Asahi has made a number of overseas acquisitions in recent years, and scaling back promotional costs in Japan would give it more capital for its international investments.

But it will need to take care to avoid falling into the same trap as Kirin Brewery, the news site argues. Kirin followed a similar strategy nearly a decade ago and saw its domestic beer market share drop and its brand diminish in value.

However, internally, Asahi will continue to use volume-based sales targets for now, while it works out new benchmarks, Mr Shiozawa said.

Obfuscation instead of transparency

Obviously, the switch to turnover figures will make it impossible to work out Asahi’s market share, as its domestic competitors – Kirin, Suntory and Sapporo – will continue to only report volume sales.

It is widely believed that Asahi’s changeover to turnover reporting is a timely move. Although it is the current market leader in Japan, Kirin is hot on its heels in terms of market share and could overtake it in 2020.

Based on brewers’ reported sales, Asahi held an estimated 36.7 percent of the market in the six months through June 2019, with Kirin close behind at 35.2 percent.

Beer consumption continues its decline

The Japan Times news service reports that Japan’s total annual beer and quasi-beer sales are likely to drop for the 15th straight year, to hit a record low in 2019. This is due to the country’s falling population and the growing popularity of cheap chūhai spirits-based products.

Sales at Asahi are estimated to fall for the third straight year, reflecting the dwindling popularity of its mainstay Super Dry beer.

Reportedly, Mr Shiozawa advised all the Nosy Parkers in the industry who may be miffed about Asahi’s new reporting policy: Consult market research firms for any changes in the beer and happoshu markets.