Oct. 1 tax hike squeezes Japan's low-malt and '3rd-category' beers as brew war looms
TOKYO -- Liquor tax changes taking effect Oct. 1 will unify Japan's tax rates for beer, "happoshu" low-malt beer and beer-like drinks known as "third-
On October 1st, Japan's tax rates for beer will be standardized, as part of a reform dubbed the "Reiwa beer war." The liquor tax on standard beer cans will decrease by roughly 9 yen, allowing brewers to lower prices. However, happoshu (low-malt beer) and third-category beer (fruit or vegetable-infused drinks) will see a tax increase of about 7 yen, which may pressure manufacturers to pass the increase onto consumers.
Happoshu and third-category beers have traditionally capitalized on their affordability to attract budget-conscious consumers. Major brewers are racing to introduce new products to maintain market share. Suntory, a prominent player, recently unveiled a new product under its Kinmugi brand, which has become the top seller in this category.
Kinmugi's success is attributed to its low price and refreshing taste. However, the new tax reform may force Suntory to raise prices, potentially driving away price-sensitive customers who may turn to cheaper alternatives like chuhai. Suntory is determined to turn this tax challenge into an opportunity by launching new products.
Written by urgent.news from The Mainichi's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
