Beer evolution?

There is little doubt that Japan is a beer-loving country. There is also little doubt that the beer industry has been hard hit by Japan’s prolonged economic woes. A few years ago the big producers here began offering low-malt alternatives to their traditional brews. These new products exploded in popularity thanks in large part to a provision in the law which taxed beer. The tax was applied based on the malt content of the beer. Therefore, lower malt content meant lower taxes and thus lower expense for the consumer.

The beer market had been fairly stable up to this point, with strong brand loyalty maintaining fairly stable market shares. The new, cheap brews, however, changed this and that the beer producers started chasing new consumers with renewed energy and promotional blitzes. So successful were these new, cheaper alternatives that at one point sales of hopposhu, as they are known, out did traditional beer sales.

Then the tax authorities realized they were being denied revenue and upped the tax on hopposhu. It now appears that the beer-producing giants are looking for new ways to stimulate sales growth. And the results have been interesting to say the least.

One area of new product introduction that has come about is the non-alcoholic beer. This may also be a partial response to the recent stiffening of penalties for driving under the influence. Advertising campaigns were launched, and free non-alcoholic beers were given away with pizza deliveries. The brews come with enticing names like Beer Squash, Buckler and Fine Brew. The latter features a television commercial showing a middle-aged man of doubtful sobriety in his office, jacket off, spinning madly in a chair, saying, “’How are you?’ ‘I’m fine. Brew?’” and laughing hysterically at his own joke.

However, the real battle for market seems to be more with the alcoholic varieties. Here there have been even more variations on the traditional beer. Take, for example, the hopposhu varieties Fiber and Half&Herb from Sapporo. Kirin has gone for other variations, introducing seasonal offerings for fall, winter, and even one named for August made with New Zealand hops. Asahi has entered the fray with a brew containing rice extract, and a hopposhu called Sparks, for the “superlight” market, no doubt to contest the other ‘diet’ brews on the market. Asahi’s normal hopposhu uses deep-sea water to get its unique taste.

How well this translates into revenue for the companies involved remains to be seen. So far, at least, it doesn’t seem to be helping. August beer sales were down nearly 10%, blamed on an unusually cool summer. Kirin has reported an overall drop of 2% in the sales of beer, but a slight upturn in the hopposhu market.

The next few months will prove interesting to watch as the results begin to take shape and the companies continue to churn out new products to satisfy the varied tastes of the consumer. So grab a diet-fiber-herb-rice pseudo-beer and enjoy the show.