Japan: Beer sales increase in October thanks to liquor tax cut

Sales of beer in Japan logged steady year-on-year growth in October, aided by a cut in the liquor tax for the alcoholic beverage category at the start of the month, data from brewers showed on November 12.

On the other hand, sales sagged for so-called third-sector quasi-beer products, for which the tax was raised, after demand surged in the lead-up to the hike in the levy.

October sales of beer and quasi-beer fell from a year before at three of the nation’s four major brewers — Asahi Breweries Ltd., Suntory Beer Ltd. and Sapporo Breweries Ltd. Sales almost leveled off at Kirin Brewery Co.

The liquor tax for beer was reduced by ¥7 per 350-millimeter can. Asahi’s mainstay Super Dry, Kirin’s Ichibanshibori and Suntory’s The Premium Malt’s beer all marked rises of about 20% in sales. Sapporo’s Black Label beer saw a jump of about 30%.

Sales of third-segment beverages fell about 20% to 40% percent at Sapporo, Kirin and Suntory.

But an industry source said that the impact of the tax hike “is expected to fade by the end of this year at the latest” because third-segment products are still cheaper than beer even after the tax increase.

Beer and quasi-beer sales to commercial clients are recovering from the slump caused by the novel coronavirus epidemic. Sales fell 20% year on year in October, far better than drops of 70% to 80% marked this spring.

The rebound is seen to be have been aided by the government’s Go To Eat scheme launched in October aimed at encouraging people to eat out.

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