Japan Supermarkets Step Up Beer Sales as Tax Cut Lowers Prices

Following a liquor tax revision that took effect in Japan on Oct. 1, retailers have begun cutting prices on beer, which is now subject to a lower tax rate.

Japanese Supermarkets are expanding beer displays and cutting prices following the Oct. 1 liquor tax revision. [Photo: Krombacher Facebook]

Major supermarket chains are expanding their beer sections in anticipation of increased demand, according to The Mainichi.

Under the revised liquor tax system, the tax on beer and other beer-type beverages was standardized at about ¥54 per standard 350-milliliter can. The tax on beer was cut by about ¥9, while taxes on low-malt beer and so-called "third-category" beer alternatives increased by roughly ¥7.

Japan's Finance Ministry confirms that the new unified rate is ¥155,000 per kiloliter, equivalent to ¥54.25 per 350-milliliter can.

Krombacher, a German beer sold in 330-milliliter cans, was marked down from ¥195 to ¥184. Aeon Co.'s private-label Topvalu Premium Beer, in 350-milliliter cans, was reduced from ¥173 to ¥162 — a price cut that exceeded the ¥9.10 tax reduction.

Stores are offering more varieties than usual, including German beers imported directly by Aeon, the company's private-label beers and craft beers from various parts of Japan.

Mitsuko Tsuchiya, an executive vice president of Aeon, said the company would focus on directly imported beers and private-label products and aimed to increase beer sales to 1.5 times the previous year's level during the second half of the fiscal year beginning in October.

The Oct. 1 liquor tax reform also changed the tax rate on canned alcoholic beverages such as chuhai, a shochu-based mixed drink. The tax is now ¥35 per standard 350-milliliter can, up from ¥28 previously.

The Finance Ministry confirms the new ¥100,000-per-kiloliter rate, equivalent to ¥35 per 350-milliliter can.