Suntory turns Kinmugi into beer to strengthen sales in Kansai in response to October liquor tax reform

Suntory held a press conference in Osaka on the 3rd and announced that it will strengthen sales in the Kansai region of the Kinmugi series, which will be released on the 6th (or some on the 13th) after changing its manufacturing method from a "new genre (third beer)" to "beer" in line with the liquor tax reform on October 1st.

Kinmugi's sales volume peaked at 38.47 million cases (one case is equivalent to 20 large bottles) in 2019, but is expected to fall below 30 million cases in 2025. By ``beerization'', the company aims to position Kinmugi as a driver of the low-priced beer market, and aim to increase sales to 35 million cases within the next five years, an increase of approximately 18% compared to 2025.

For Suntory, the growth of ``Kinmugi'' after it becomes a beer will be the key to preventing the overall beer business from shrinking, not only in the low price range called ``daily beer,'' but also in the high and medium price range.

Currently, ``the further you go to western Japan, the fewer Kinmugi users are'' (according to a person in charge), so it is essential to raise the standard in the Kansai region. It is unclear why the market share is lower than in the Kanto region, but it is said that in western Japan, ``happoshu tends to be preferred.''

In addition to appealing to consumers in the Kansai region on price, it is important to let them experience the good taste. Therefore, in the Kansai region, there will be more opportunities to experience the product before its release. A tasting event was held for neighboring companies and business partners of Suntory Holdings Osaka Head Office. In September, it will also be available at beer gardens for general consumers.

The liquor tax reform in October unified the tax on beer to 54.25 yen per 350ml. Beer prices will drop by about 9 yen, while low-malt beer and new genres will cost about 7 yen more.

As a result, many manufacturers have announced that they will upgrade the new genre to beer, which would result in a tax increase. Kirin will make ``Honkirin,'' Asahi Beer will make ``Clear Asahi,'' and Sapporo Beer will make ``GOLD STAR'' and ``Mugi to Hop.'' Competition among manufacturers is likely to intensify in the Kansai area, where price-consciousness is strong. (Keiko Tamura, photo also)