Kirin Brewery
May 31, 2024
2023 Review
- Strengthened investments in core brands to prepare for the alcohol tax revisions in October 2023. Regarding beer, by renewing the KIRIN ICHIBAN brand, there were steady sales and a recovery of the on-premise sales provided a tailwind, increasing sales volume.
- Developed the Spring Valley brand lineup while collaborating with distribution companies and craft breweries to expand sales spaces and locations for craft beer.
- Responded to rising costs of raw materials with continual cost reductions and price revisions.
- Off-premise needs lessened due to the recovery of the on-premise sales, reducing the sales volume, mainly of beer, but increasing unit prices through price revisions grew revenue.
- In addition to the rising cost of raw materials, we also increased marketing expenses for medium- to long-term brand development, but the effects of price revisions and the improvement of transportation fees increased normalized operating profit.
2024 Plan
- Strengthen investments in core brands to prepare for the alcohol tax integration in 2026. By putting the first new beer in 17 years, Kirin Beer Harekaze, on the market in addition to KIRIN ICHIBAN, which is expected to grow in the overall market, will meet a wide range of consumer needs.
- Meet needs for products other than beer by further solidifying the position of each core brand in the happoshu, new genre beer, and RTD (ready-to-drink) categories. Aim to raise profitability by expanding categories with a high marginal profit ratio, including craft beer, Japanese Whisky, and non-alcoholic beverages.
- Aim to improve revenue by increasing sales in each category, such as beer and RTD, etc. Will strengthen marketing investments to prepare for the alcohol tax integration, and will realize improved sales volume, mainly of beer, and raise earnings.
- Expect the continual rising cost of raw material can be offset with the effects of the price revisions made in October 2023.
- Will reduce the number of distribution trucks and improve delivery efficiency to minimize the effects of the 2024 logistics problem
Example
Launched first new brand in 17 years: Kirin Beer Harekaze
The beer category has continued to grow since the alcohol tax integration in October 2023. In our company’s beer category, in addition to our main KIRIN ICHIBAN brand, we launched Kirin Beer Harekaze, our first new beer brand in 17 years. Kirin Beer Harekaze is characterized by a new delicious taste that suits the preferences of the modern generation’s consumers and has the umami (fifth category of taste, corresponding to the flavor of glutamates) and drinkability of beer while being easy to drink. We will contribute to not only our company’s earnings, but also to activities to preserve Japanese traditions that make consumers smile, such as fireworks, hanami (cherry blossom viewing), and other events at which beer has historically been enjoyed, through Harekaze ACTION, which will use some of our sales revenue to liven up the events.
Kirin Brewery will achieve growth in the beer category that exceeds the market and will also grow all beers as a whole by meeting diverse needs with diverse brands, including happoshu and new genre beer.
