![]() Beyond the huge shochu category and local liqueurs, whisky/whiskey is the dominant spirit (although gin is gaining ground off a very small base), with domestic whiskies to the fore. The Highball remains a mainstay of spirits consumption in Japan. “We see easy-to-make cocktail serves, like the Whisky/Whiskey Highball or Gin & Tonic, gaining in popularity because it’s easy to make them at home.” “The days of the customary stop by a bar or restaurant for a drink with colleagues or friends shifted a bit to at-home consumption due to an increase in remote working,” observes Azuma. Market must adjust to major shift in consumption habitsįor a spirits market historically built on casual drinking in bars and restaurants, this is a major shift in terms of consumption habits, and it requires a similarly seismic switch of emphasis from brand owners and distributors. The off-trade channel has been strong, and is expected to continue growing.” ![]() “While it might still accelerate in the last quarter of 2022 and into 2023, significant recovery in the future isn’t currently expected, due to changes in consumer behaviour and the macrotrend of population decrease (a declining birth rate and ageing society). “The on-premise channel in the Japanese spirits market has recovered to around 80% of the pre-COVID level,” he reports. The numbers may vary slightly, but this view is broadly echoed by Hideki Kanda, president of Suntory Spirits. “As we look to the future, we know that behaviours will change, and the full return to the on-trade will look different.” “While the country continues to manage waves of COVID infections, we are currently seeing positive returns, with September at nearly 90% of pre-COVID rates,” says Bacardi Japan MD Tomo Azuma. On-premise not expected to return to pre-COVID levels Only now is the country’s on-premise returning to something approaching pre-pandemic levels, and some of the changes wrought by repeated lockdowns will persist for years to come. Then, there are the ongoing effects of the pandemic, which have been deeper and more prolonged in Japan than in most other developed nations. Factor in a more health-conscious younger generation and the prevalent trends don’t look positive for spirits brands. The campaign may be faintly bizarre, but its very existence says something about the nature of a country where population decline is endemic, thanks to a declining birth rate. “We’re committed to contributing and participating in initiatives that encourage the younger generation to drink responsibly.” ![]() “We do not know the specifics of what the Japanese government is trying to do with their campaign,” says a spokesperson for Pernod Ricard. The campaign has met with a mixed response - not least from the health lobby - and the reaction of brand owners has been one of mild mystification. But, that’s exactly what Japan’s National Tax Agency announced in August.Ĭoncerned that younger legal drinking age consumers were drinking less than their forebears - and impacting tax revenues as a result - the agency launched a national competition called ‘Sake Viva!’, asking 20- to 39-year-olds to come up with ideas to boost demand for everything from beer to sake, and from wine to whisky. In these days of responsible drinking initiatives and the rising popularity of no- & low-alcohol products, a public campaign that encourages young people to drink more alcohol comes as something of a surprise. For details on how to subscribe, click here.Īs the Japanese Government encourages the country’s younger LDA consumers to drink more alcohol, the burden of promoting responsible drinking has fallen to brand owners as they navigate a changing consumption environment. This article was initially published in the November issue of Global Drinks Intel magazine. ![]() Credit: Jezael Melgoza/Unsplash - Spirits
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