Some interesting trends in the Japanese craft beer market.
Imports of U.S. Craft Beer
Figures from the U.S.-based Brewers Association show that
Japanese imports of U.S. craft beer rose by 57 percent in 2012
and
the sales amount of all beer imports rose to 5.49 billion
yen in 2012 (from 5.41 billion yen in 2011)
and
the volume of beer imports fell in 2012 to 40.7 million
liters (from 42.4 million liters in 2011).
So, sales of U.S. craft beer are rising rapidly, and sales
of imports from all countries are rising slightly, yet the overall total of imports
is declining. This seems to mean that U.S. craft brewers are taking a
larger share of the Japanese market, while the volume of imports is
decreasing. Perhaps old stand-bys in Japan, such as Budweiser and Heineken, are
losing ground to craft breweries.
Japanese Craft Breweries Expanding
Japanese craft beer production rose by 7.7% last while sales
at Japan’s biggest breweries fell. In fact, the five major brewing companies
have seen sales declines in each of the past eight years.
Both large and small Japanese craft breweries are ramping up
production.
One expert believes that Japan in the midst of a “second
microbrew boom.”
Yo-Ho Brewing Co., the biggest craft brewery in Japan, has
seen a year-on-year sales increase of 40 percent. The company, founded in 1996,
is one of the survivors of the first craft beer bust and plans to increase
production and double its sales in 2013.
Baird Beer, one of the most highly regarded Japanese craft
breweries, and also quite visible on U.S. store shelves, is currently building a
new facility that should greatly expand its production.
Brimmer Brewing K.K., which started business only two years
ago, is planning to triple its capacity in 2013.
A final factor: the yen has weakened against the U.S. dollar
by around 15% in the past six months. Ideally, this should help Japanese craft
beer makers export their brews, while also making imported beer more expensive
and hence less attractive to Japanese drinkers.
A few thoughts:
Japanese craft breweries' sales comprise only 1% of the beer
market in Japan. In 2012, American craft beer makers had 6.5% of the U.S. beer market by volume and 10% of
sales, and those percentages are still growing.
Japanese craft beer fans seem not to mind the high price
of beer as much as Americans do. Many commonly pay 1,000 – 1,200
yen ($10-12) per pint, and they will likely continue to do so. Also, they will
probably not drink any less if prices rise or drink much more if prices drop.
Also, except for their novelty factor, Japanese craft beer
makers have not yet distinguished themselves enough to really stand out on the
crowded shelves of large beer stores in the U.S. Not next to wild and crazy and
(yes) very tasty brews from Belgium, Scandinavia, and the U.S. Perhaps more marketing
is called for? Or perhaps the recent favorable move in the yen/dollar exchange rate will
help? On recent visit to the U.S., I noticed several bottles from one of the
Japanese breweries mentioned above gathering dust in a liquor store discount bin. When I
asked the manager about this, he replied that they were so expensive to
import that he had to price them too high and could not sell many.
Finally, many friends have noticed that the quality of
Yo-Ho’s flagship brew, Yona Yona Ale, has declined over the past year or so.
Making more yes, but not better, or even as good. Boom or bust?
