Record number of RTDs offsets Japan beer slump

Japanese brewers are set to release a record number of RTD canned cocktails this summer with the hope of offsetting long-term declining beer sales.

Suntory is one of a number of Japanese brewers attempting to offset declines in beer sales with a “record” number of RTD launches

Breweries have been struggling in Japan over recent years as younger generation drinkers develop a greater taste for spirits and wine.

A greater amount of ready-to-drink (RTD) cocktails have therefore been launched as an alternative “beer-like” beverage, according to Reuters.

While Japan places a high tax rate on spirits, RTD’s are taxed at the same lower rate as beer providing they do not exceed 9%.

Such products can therefore be offered at a relatively lower price and compete against other categories in a bid to tap into younger markets.

New data by Japanese drinks group Suntory claims that RTDs are now the top category that introduces younger generation consumers to alcohol.

The RTD market in Japan has almost double since 2001, while traditional beer sales have almost halved, Suntory’s data reveals.

The company also revealed in February this year that the RTD sub-category helped its total spirits sales rise 3% in 2013.

Its RTD segment reported sales of 47 million cases for the year – a 10% increase against a predicted 5% predicted increase for the category overall.

The group’s Funwari Kyogetsu and Cocktail Tours RTD brands sold 880,000 cases, exceeding the 720,000 case target.

Reuters now reports that Suntory plans to push this growth even further by releasing a “record” 23 RTD canned cocktail labels between June and August this year, compared to 17 in 2013.

Rival groups Asahi Group Holdings and Kirin have also announced their own new ranges this summer.

This year, RTD sales are predicted to grow a further 3% to 13 million cases compared with a 1% decline in beer, according to Suntory, which is itself aiming for 3.8% growth.