Friday, July 23, 2010

Japanese Beer Companies Facing Tough Times

Japan has been going through massive change in the recent years, though the most drastic of which may be yet to come. It is no secret that the country's population is falling. Sharply. Blame it on the stingy companies not offering adequate maternity leave for child bearing women, cost / space constraints, or the seemingly decreasing interest level in getting married amongst the general population. Whatever the reason(s) may be, one thing is for certain, the rapidly decreasing population in Japan will (if not already) have a profound effect on several things. The one we are concerned about here? Beer of course.

The decreasing population issue spells decreasing demand for beer in the island nation. For a while, the beer company giants of Japan, including Kirin, Asahi and Sapporo, have been hurt by this and have been attempting to counter the effect with innovative moves. Non alcoholic beer and flavored beer are a couple of these, but they have been met with very limited success. The next move these companies are considering is buying stake in foreign, including US beer brands.

Sapporo has recently been looking to do just that with a couple of big named US brands. It was reported in the New York Times recently that Sapporo has been in serious talks with at least two large companies in the US, with the aim to boost overseas sales of their Japanese beers (Read the full story here). While the company will not give out which brands these are, it has ruled out both Budweiser and Miller.

Asahi, Japan's second largest beer company, has been focused on expansion in China while Kirin, the nation's largest, has been more focused on Australia.

Sapporo's beer shipments this month may have hit an all time low in the land of the rising sun. However, if that means we may see freshly brewed Yebisu in the States sometime soon, there may be a silver lining after all.

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