Japan: Beer prices could go up

Japanese consumers, accustomed to years of deflation, will finally feel some pain when brewers will increase the beer prices, Reuters reported October 16.

Kirin Holdings Co Ltd, Japan's second-biggest beer maker, said it was considering whether to pass higher raw material costs on to customers. The No.1 Brewer, Asahi Breweries Ltd, said it was making efforts to cut other costs.

"Higher beer consumption in the rest of the world, together with poor harvests, has tightened malt supplies," said Hiroki Umezawa, deputy manager at Kirin's investor relations.

Prices of hops and other ingredients, such as corn syrup, are also on the rise, increasing cost pressure, he said.

Currently, some beer makers are negotiating on aluminium can contracts for the business year starting in April, a key factor determining retail beer prices, industry sources said.

Beer prices in Japan have held steady since 1990.