26 April, 2006

Japan: Aeon will maintain third-category beer prices after a hike in liquor taxes

Japan’s Aeon Co. stated on April 26 that it will maintain the retail prices of so-called third-category beer after a hike in liquor taxes on the product next Monday, according to a Kyodo report.

Industry observers say the decision on the part of the leading retailer could prompt other supermarket chains to follow suit. The government will raise liquor taxes on the third-category beverage next Monday by 3.8 yen per 350 milliliters. The taxes on regular beer will be lowered by 0.7 yen.

The tax increase looks set to impact on the businesses of both makers of the third-category brew and retailers because that type of product has enjoyed brisk sales due to its lower prices compared with those of regular or low-malt beer, which are taxed at a higher rate.

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