Kirin Holdings is gearing up its marketing efforts in 2024 in anticipation of increased domestic competition and Japan’s 2026 liquor tax reforms. The company plans to focus on promoting its flagship brand, Kirin Ichiban, and introducing new brands in the pure beer category.
This comes on the back of all the major brands adjusting their strategies for overseas growth.
This marketing ramp-up is part of a broader strategy to enhance its presence and market share ahead of the impending tax changes, strategically positioning itself to navigate these changes and capitalize on emerging opportunities in the market.
President and CEO Yoshinori Isozaki highlighted the importance of winning in the beer category amidst the intensifying competition. “This year, we will focus on Kirin Ichiban and new brands in the pure beer category, but competition will intensify in preparation for the 2026 liquor tax revision,” he said, commenting further on Kirin’s need to maintain the strength of the company’s existing brands, especially in categories expected to face higher tax rates under the new reforms.
The upcoming liquor tax reforms in Japan aim to revamp the taxation of alcohol, with changes set to be implemented gradually by 2026. These reforms include a lower tax rate for regular beer and a higher rate for happo-shu, a “third beer,” which contains much less malt content or none at all.
The tax reforms in Japan are part of the government’s efforts to adjust alcohol taxes, with the aim of promoting healthier drinking habits and supporting domestic industries.
“We expect a certain volume of happo-shu and new genre beer to remain, so it is also important to maintain our strong brands,” said Isozaki.
In addition to its focus on beer, Kirin Brewery, a subsidiary of Kirin Holdings, is set to launch its first new brand in 17 years in 2024. The company’s ready-to-drink canned cocktail, Hyoketsu, also experienced significant growth in 2023, surpassing expectations and demonstrating the brand’s strong performance in the market.
Financially, Kirin Holdings reported a revenue of Y2.1 billion ($14 million) for the year ending on December 31, 2023, marking a 7.3% increase from 2022. The company is forecasting a 6.4% rise in profits to Y2.27 billion for 2024, indicating its confidence in its growth prospects despite the challenging market conditions.
Kirin Holdings will also invest US$25m to up its minority stake in B9 Beverages, brewer of Indian craft beer Bira 91.
