Japan: Competition intensifies in Japan’s beer-like beverages segment
Competition has been intensifying again in Japan’s market of “third-segment” beer-like beverages, The Japan News reported on May 17.
Last year, combined shipments of beer and “happoshu” low-malt quasi-beer declined for the 14th straight year, but third-segment beverages with little or no malt content saw their shipments rise 3.7 percent, the first increase in five years.
Popularity of the third-segment drink was reignited by Honkirin, released by Kirin Brewery Co. in March 2018.
More than 10 million cases of Honkirin were sold in the first 10 months since the product hit store shelves. A case contains the equivalent of 20 633-milliliter bottles.
The product mimics the taste and feel of beer, but its 350-milliliter can sells about ¥80 cheaper than authentic beer products of the same size. Honkirin is luring consumers in their 40s and 50s.
Other breweries followed suit with their own new releases of third-segment beverages. In January this year, Asahi Breweries Ltd. launched the Gokujo Kireaji, which performed so well that the maker raised the annual sales target in April from 3 million cases to 4 million.
Suntory Beer Ltd. revamped its flagship Kinmugi series for the first time in 13 years in January. In particular, the Kinmugi Gold Lager, a new product, drew strong demand because of its rich taste.
As a result, the company lifted its annual sales target by 30 percent to 4.4 million cases.
In April, Sapporo Breweries Ltd. put into market Honkaku Karakuchi, which features high gas pressure.
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