Japan's beer giants have launched a commercial campaign to encourage people to rush out and buy third-segment beerlike beverages ahead of the tax hike on these low-priced drinks in October.
Third-segment "beers" are made from soybeans and other ingredients in addition to malt and were launched in 2003. The price of a 350-milliliter can is about 80 yen cheaper than beer, which costs about 200 yen. Starting Oct. 1, the price will increase by about 10 yen.
Posters seen at a supermarket in Itami, Hyogo Prefecture, on Tuesday, proclaim, "The liquor tax will go up in October."
A 78-year-old man living nearby said: "Even if the price [of the third-segment products] goes up a little, it's still cheaper than beer. I'm going to buy a case or so more in the meantime to save money."
The current liquor tax rate on beer-type beverages varies by type. This is considered as unfair and will be reviewed in stages. The tax rate on happoshu, low-malt beerlike drinks, will increase in October 2026, with all beer type beverages having the same rate.
The amendment in October is the first stage, and the tax amount per 350-milliliter can will rise from 28 yen to 37.8 yen for a third-segment product and drop from 77 yen to 70 yen for beer. In-store prices are expected to reflect the change in tax rates.
Beerlike beverages are a breadwinner for brewers, with sales increasing due consumers's tendencies to spend less and drink at home amid the ongoing coronavirus outbreak. In the January-June first half, the sales volume of third-segment beverages accounted for 49% of the total beer market, surpassing beer, at 38%, for the first time.
However, sales are expected to slow down after Oct. 1 as a result of the price hike, so the major players are focusing on stirring up a demand rush before October.
Suntory Liquors Ltd. has added prizes to its mainstay Kinmugi drink and started a campaign for winning free tickets to Universal Studios Japan in Osaka City, which it has rented out for a day.
"Many people are unaware of the coming tax rate hike. We want to make them aware of it and encourage them to rush out and buy," a senior official of the company said.
Kirin Brewery Co. is similarly strengthening sales of its mainstay Hon Kirin, but it will also focus on beer, planning to launch a new beer with a zero-sugar claim in October.
Takuya Kano, a representative of Sakebunka Institute Inc. said that the third-segment beverages have improved in taste and their popularity has become established.
"The tax rates on canned chuhai spirits and canned highballs will remain the same for the time being. An increase in the tax rate could accelerate the shift away from beers that consumers have been familiar with," he said.
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