2 Alcoholic Beverages (Beer, Wine, Whisky, etc.) - ASEAN-Japan ...
2 Alcoholic Beverages (Beer, Wine, Whisky, etc.) - ASEAN-Japan ...
2 Alcoholic Beverages (Beer, Wine, Whisky, etc.) - ASEAN-Japan ...
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2 <strong>Alcoholic</strong> <strong>Beverages</strong> (<strong>Beer</strong>, <strong>Wine</strong>, <strong>Whisky</strong>, <strong>etc</strong>.)<br />
C-2. <strong>Alcoholic</strong> <strong>Beverages</strong> (<strong>Beer</strong>, wine, whisky, <strong>etc</strong>.)<br />
1. Market Conditions in <strong>Japan</strong><br />
(1) Definition of Category<br />
In this report, kinds of alcohol, such as wine, beer, whiskey, and other alcoholic drinks are considered.<br />
Classification by foreign trade statistics and HS numbers are shown below.<br />
【<strong>Wine</strong>】<br />
Spirits made from fermented grapes or grape juice.<br />
HS Numbers Commodity<br />
2204.10-000 Sparkling wine<br />
2204.21-010<br />
Sherry, port and other fortified wine (in 2 liter bottles or<br />
smaller)<br />
2204.21-020 Bottled wine (in 2 liter bottles or smaller)<br />
2204.29-010, -090 Bulk wine<br />
2205.10-000, 90-200 Vermouth and other wine<br />
Note: In <strong>Japan</strong>, people sometimes refer to all brewed spirits made from fruits as wine, while the Liquor Tax Law<br />
classifies wine into fruits wine and sweetened fruits wine. This guidebook, however, shall follow the common<br />
definition, and shall refer to spirits made from fermented grapes or grape juice as “wine.”<br />
【<strong>Beer</strong>】<br />
<strong>Beer</strong>, which is fermenting a mixture of barley malt, hops and water produce an alcoholic beverage, and<br />
sparkling beverages made, in part, from malt<br />
HS Numbers Commodity<br />
2203.00-000 <strong>Beer</strong><br />
2206.00-225 Sparkling malt beverages (so called happoshu)<br />
Note :Imported beer and wine containing less than 0.5% alcohol are classified under category 2202.90<br />
(non-alcoholic beverages). In addition, beverages with an alcohol content of 0.5-1.0% are not classified as beer<br />
under the Liquor Tax Law. These products are sold as soft drinks instead.<br />
【<strong>Whisky</strong>】<br />
<strong>Alcoholic</strong> beverages made through the fermentation of germinated barley, rye or corn with water and through<br />
distillation<br />
HS Numbers Commodity<br />
2208.30-011, -019 Bourbon whisky<br />
-021, -029 Rye whisky<br />
-031, -032 Other whiskies<br />
Note: Scotch whisky, Canadian whisky, and Irish whisky are classified as “other whiskies” and have no independent<br />
customs clearance statistics.<br />
【Others】<br />
HS Numbers Commodity<br />
2206.00-210 Sake and unfiltered sake<br />
2206.00-221 Fermented alcohol (fruit added, <strong>etc</strong>)<br />
2206.00-229 Other fermented alcohol (apple liquor, pear liquor, mead, <strong>etc</strong>)<br />
2208.40-000 Rum and Tafia<br />
2208.50-000 Gin and Genever<br />
2208.60-000 Vodka<br />
2208.70-000 Liquor and cordials<br />
2208.20-100,-200 Brandy<br />
2208.90-111,-119 Fruit Brandy<br />
2208.90-129 Other distilled liquors<br />
2208.90-220 Synthetic sake and white sake<br />
2208.90-230,-240 <strong>Alcoholic</strong> beverages made from fruit juice<br />
(2) Market Trends<br />
In recent years, the <strong>Japan</strong>ese alcohol market has continued to experience a downward trend. The annual<br />
production amount of alcoholic beverages in 2005 was 9,447,102kl (2.2% decrease over the previous year),<br />
and converts to 91,162ml per adult. For the 6 consecutive years up to 2001, alcohol production volume<br />
exceeded 10,000,000kl. However, production has since leveled off, with less than 10,000,000kl in 2002, and<br />
Marketing Guide for <strong>ASEAN</strong> Exporters to <strong>Japan</strong><br />
185
C-2. <strong>Alcoholic</strong> <strong>Beverages</strong> (<strong>Beer</strong>, wine, whisky, <strong>etc</strong>.)<br />
has decreased 6.5% over the past 5 years, with consumption per adult decreasing 8.3%.<br />
Causes for the downward trend in the market in recent years include change in lifestyle, the economic<br />
depression over the past several years, notably reduction of prices, lite-conscious trend, and diversification of<br />
tastes. The number of young people who do not drink alcoholic beverages at all, or only drink low-alcoholic<br />
beverages, has increased.<br />
Among alcoholic beverages, beer is most favored by the <strong>Japan</strong>ese, occupying 38.2% of the total annual<br />
alcohol production amount. However, after the sale of happoshu began in 1994, the production amount and<br />
total share of beer has continued to decrease with a 7.9% decrease in 2005 over the previous year. Furthermore,<br />
sparkling malt beverage, so-called happoshu which increased production amount at the expense of beer, has<br />
fallen into the negative area since the tax increase of happoshu in May 2005, and has decreased immensely<br />
since that time, with a 25% decrease over the previous year. Instead, “beer-tasting drinks of the third<br />
generation” (the so-called third beer that statistically corresponds to a hybrid), which do not use malt or oats,<br />
have replaced the consumption amount of happoshu. Following the big hit of “Draft-One" by Sapporo <strong>Beer</strong>,<br />
Suntory, Kirin <strong>Beer</strong>, and Asahi <strong>Beer</strong> also entered into the third beer market, and in 2004, the production amount<br />
greatly expanded to 16 times that of the previous year, then 3.6 times in 2005.<br />
Liqueurs and spirits also steadily increased, since they are necessary to make cocktails, which are popular<br />
among women and shochu-based canned beverage. Shochu (distilled spirits)-based beverages are original to<br />
<strong>Japan</strong> where fruit flavored soda water, such as lemon, grapefruit, or orange, is added to a distilled alcoholic<br />
base such as shochu, neutral spirits (raw material alcohol), or vodka. These beverages are sold at a low-price<br />
(approximately 120-150 yen for a 350ml can), and have a low-alcohol content (about 5-7% alcohol). For<br />
example, Kirin began sale of “Hyoketsu” in 2001, which soon became popular among young people and<br />
women, and other companies soon followed. Each company seeks to differentiate itself from its competitors<br />
in one way or another in order to increase its market share by adding low-calorie products in response to health<br />
trends or seasonal products.<br />
For several years, a downward trend in the consumption volume of wine (fruit wine) could be seen, but in<br />
2005, a positive increase of 2.2% over the previous year was experienced, due in part by a boom in sparkling<br />
wines, including champagne.<br />
The peak of the shochu boom also seems to have passed, but sales are still steady (0.0% increase over the<br />
previous year), and the market is led by popular large-volume bottles in A Class that focus on low-price<br />
products, and potato shochu and Awamori in B Class.<br />
Fig. 1 <strong>Japan</strong>ese consumption of alcoholic beverages (2005)<br />
Total annual<br />
consumption<br />
(kl)<br />
Percentag<br />
e of total<br />
Per capita<br />
consumption<br />
(ml)<br />
Yearly<br />
change<br />
<strong>Beer</strong> 3,606,826 38.2 34,805 92.1<br />
Happoshu 1,782,154 18.9 17,197 75.0<br />
Miscellaneous<br />
liquor<br />
887,349 9.4 8,563 361.4<br />
<strong>Japan</strong>ese sake 737,676 7.8 7,118 96.7<br />
<strong>Japan</strong>ese<br />
shochu<br />
1,047,193 11.1 10,105 100.0<br />
Liqueur 778,244 8.2 7,510 109.7<br />
Spirits 78,289 0.8 755 99.0<br />
Fruit wine 259,683 2.7 2,506 102.2<br />
<strong>Whisky</strong> 95,234 1,0 919 95.9<br />
Others 174,454 1.9 1,684 ――<br />
TOTAL 9,447,102 100.0 91,162 97.8<br />
Marketing Guide for <strong>ASEAN</strong> Exporters to <strong>Japan</strong><br />
186<br />
On the other hand, the consumption amount of<br />
high-alcohol content whisky and sake has decreased,<br />
influenced by the trend for low-alcohol, with a 4.1%<br />
and 3.3% decrease, respectively, over the previous year.<br />
However, the industry assumes that the downward<br />
trend over the past several years has eased due to<br />
single malt whisky gaining popularity and the boom in<br />
<strong>Japan</strong>ese sake, especially with women.<br />
In contrast to the trend towards low-price, the number<br />
of people who still demand genuine quality, even at a<br />
higher price, has also increased, not just for single malt<br />
whisky as mentioned above, but also for premium beer<br />
and premium shochu products, with a steady expansion<br />
of the support base. As a result, a polarization of the<br />
market has developed.<br />
Source: Bureau of Statistics, Ministry of Internal Affairs and Communications.<br />
Note) Production amount of alcohol is based on the taxable amount, according to the Tax Administration Agency (total amount of products<br />
produced in <strong>Japan</strong> or imported).<br />
Consumption volume per person is calculated based on the adult population.
C-2. <strong>Alcoholic</strong> <strong>Beverages</strong> (<strong>Beer</strong>, wine, whisky, <strong>etc</strong>.)<br />
[<strong>Wine</strong>]<br />
The domestic market of wine has continued to slide after a peak in 1998, due to various factors such as the<br />
liquidation of excess inventory, increased competition with other alcohols, diversification of consumer tastes,<br />
and the cooling off of the red wine boom by health-conscious persons.<br />
According to customs clearance statistics of imported alcohol by the Bureau of Customs, Ministry of Finance,<br />
the importation of the bottled wine category (in a container less than 2l) in 2005 decreased 6.3% over previous<br />
year. However, on the bright side, there was a boom in Beaujolais Nouveau and increased popularity in<br />
sparkling wines, including champagne.<br />
The boom in sparkling wine was sparked by the sale of wine at restaurants by the glass, at department stores,<br />
and at wine specialty shops, and became popular with women due in part to the appearance of smaller sizes,<br />
such as half and quarter, and easy-to-drink products, such as fruit-flavored wines. Growth was steady in 2005,<br />
focusing on the promotion of products with a price around 1,000 yen for a full-size bottle, brand champagnes<br />
around 3,000-5,000 yen, especially the rosé type. Sparkling wine has steadily increased from the wine drunk at<br />
a restaurant or on special occasions, to the wine occasionally enjoyed at home.<br />
On the other hand, individual companies have been focusing on the business market by expanding the market<br />
through sales by the glass. Since so many kinds of wines are on the market, it is hard to convey information to<br />
consumers except by brand promotion. As such, sale by the glass is an effective method to advertise the taste of<br />
a wine to a wide audience, and if liked, leads to greater consumption. And from the consumer side, since many<br />
different kinds can be sampled, it is very popular regardless of sex or age.<br />
[<strong>Beer</strong>]<br />
The beer beverage (beer, happoshu, third beer) market in <strong>Japan</strong> is monopolized by four companies, big brands<br />
Asahi and Kirin, and Sapporo and Suntory. The taxable shipping volume of beer beverages, which combines<br />
beer, happoshu, third beer, was 6,328,932kl in 2005, 96.8% of the previous year.<br />
The volume of beer consumption has continued its downward trend since 1994, as consumers are lost to<br />
low-price products such as happoshu, third beer, and chuhai cans. However, consumption of premium beer<br />
supported by genuine-conscious consumers, who enjoy the original taste and flavor of beer even if it is a little<br />
more expensive, has continued upward since 2003. In addition to "The Premium Malts” by Suntory, “Yebisu”<br />
by Sapporo and chilled beer by Kirin <strong>Beer</strong> (quality of the beer is maintained by low-temperature delivery,<br />
unfiltered after maturation), others have also increased sales, with the industry seeing an expansion in the<br />
percentage of the premium beer in the beer market from a 2% increase in 2001 to a 4% increase in 2005.<br />
Furthermore, although half of the beer is said to be for the business market, draft beer by the keg, for use in<br />
businesses, is also doing well.<br />
Under such conditions, overseas brand beers are faring poorly, although some are experiencing upward sales.<br />
Imported beer has an alcohol content about 4-8%, and many have their own characteristics due to various<br />
production methods. On the wave of premium beer popularity, people who demand bottled imported beer that<br />
has a characteristic taste, a special way to drink, and brand label, even if the price is a little higher, have<br />
increased. Manufacturers promote sales in the business market, by pioneering fields such as restaurants<br />
inclined towards the characteristics of a specific country or brand. According to the monthly statistics report of<br />
alcohol and foods (August 2006), the share of imported beer is in an upward trend, with a 1.78% increase when<br />
5 brands (Budweiser, Heineken, Miller Special, Lowenbrau, Carlsberg) produced in <strong>Japan</strong>, are included.<br />
Also, third beer (does not use malt or oats, listed as miscellaneous alcohol according to the Liquor Tax Law,<br />
and has a lower liquor tax than happoshu) could be competitively sold with the increase in tax for happoshu<br />
since May 2003. Starting with sale of "Draft One” by Sapporo <strong>Beer</strong> in February 2004, at 125 yen for 350ml, 20<br />
yen lower than regular happoshu, third beer had a major impact on the market. Soon after, the other 3 major<br />
beer manufacturers entered the market. With an increase of 3.61 times over the previous year in 2005, it<br />
captured the market segment that had switched from beer to happoshu by its inexpensive price.<br />
On the other hand, demand for happoshu greatly decreased, with a 25% decrease in 2005 over the previous<br />
year, as its economical merit was lost with the appearance of low price third beer.<br />
According to the aforementioned survey of the monthly statistics report of alcohol and foods, the percentage<br />
of the above three in the current beer beverage market is beer 56.26%, happoshu 27.86%, third beer 15.89%,<br />
with attention focused on how much the share of third beer will increase in the future.<br />
[<strong>Whisky</strong>]<br />
The whisky market has continued to decline over the past 7 years since 1998, and in 2005, fell to one fourth<br />
of its peak. Main consumers of whisky are middle-aged males, but consumption volume has faced hard times<br />
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C-2. <strong>Alcoholic</strong> <strong>Beverages</strong> (<strong>Beer</strong>, wine, whisky, <strong>etc</strong>.)<br />
both for business use and home use, due to the failure to recruit new consumers into the aging market,<br />
decreased demand by businesses due to the economic depression, as well as the popularity of low-price and<br />
low-alcohol beverages.<br />
As a bright spot in the whisky market, single-malt whisky using 100% malt from a single distillery can be<br />
considered. Demand has expanded for several years among 30-year-old males. Since 2004, one major<br />
manufacturer after another has developed campaigns and began sale of premium single malts. According to<br />
Suntory, the largest whisky manufacturer, imported single malts underwent a smooth transition following this<br />
trend, with a total of 64,000 boxes (1 box =12 bottles) in 2005, a 116% increase over the previous year. This<br />
has become the focus of business demand, and the consumption at hotels and standing-bars, <strong>etc</strong>., is also<br />
expected to lead to more female customers.<br />
The major beer manufacturers in <strong>Japan</strong> are seeking to establish comprehensive alcohol enterprises, by<br />
actively pursuing business partnerships and buyouts domestically and internationally. Kirin <strong>Beer</strong> acquired<br />
global distributorship of “Four Roses”(U.S.A), and domestic distributorship of liquor handled by Pernod<br />
Ricard (France), as well as direct handling of "Chivas Regal" (England), by merging its subsidiaries which had<br />
functioned as importers. Also, Asahi <strong>Beer</strong> has made strategic moves to recover its leading status in the whisky<br />
market, such as acquisition of Nikka <strong>Whisky</strong> as a complete subsidiary, and by exchanging contracts with<br />
Maxxium Worldwide (Holland) in <strong>Japan</strong>.<br />
(3) Distribution System and Business Practices in <strong>Japan</strong><br />
Distribution of alcohol can only be carried out by anyone or an entity that has obtained a liquor sales license<br />
based on the Liquor Tax Law.<br />
Since the relaxation of requirements for a general liquor retail business license as of September 2003, stores<br />
handling alcohol expanded to include supermarkets, convenience stores, drug stores, <strong>etc</strong>. Furthermore,<br />
businesses in a wider range have entered the alcohol sales business, even unrelated business types, such as<br />
electrical household appliance stores seeking to attract more customers, rental video shops, gasoline stations,<br />
transport companies which have a delivery network to general households, and pizza delivery chains. While<br />
growth can be seen in the aggregate demand in the entire alcohol market, competition has increased along with<br />
the expansion of the distribution channel.<br />
In response to these conditions, major beer manufacturers in <strong>Japan</strong> seek to establish alcohol businesses that<br />
can handle not only beer and happoshu, but also wine, shochu, spirits, chuhai, whisky, liquor, <strong>etc</strong>., as well as<br />
seek to establish comprehensive alcohol enterprises by actively pursuing business alliances and buyouts<br />
domestically and internationally. Also, efforts by food and alcohol wholesale dealers towards joint tie-ups and<br />
mergers for comprehensive wholesale functions have become noticeable.<br />
[<strong>Wine</strong>]<br />
Domestic wines are normally distributed from the wine maker through primary liquor wholesalers, secondary<br />
liquor wholesalers to retailers, then finally to consumers or commercial users such as restaurants, bars <strong>etc</strong>.<br />
Most of these wines are made by blending with imported bulk wines and must. A variety of channels are<br />
available to the imported wines, including direct imports by <strong>Japan</strong>ese wine makers, indirect imports via<br />
specialized trading companies, or joint imports. Some leading wholesalers and large retailers buy direct from<br />
abroad and distribute through their own sales channels, bypassing importers altogether.<br />
Also some wine specialty importers sell directly to consumers. <strong>Japan</strong>ese wine makers often serve as the sole<br />
import agent for leading brands of French and Italian wine.<br />
Many major trading firms, which previously imported bulk wine and bottled wine according to the intention<br />
and strategy of the manufacturers and wholesale dealers, have begun to concentrate on wine importation and<br />
sales under their own brand.<br />
Also, website shopping over the Internet has spread throughout <strong>Japan</strong> and is expected to continue to expand<br />
in future.<br />
Marketing Guide for <strong>ASEAN</strong> Exporters to <strong>Japan</strong><br />
188
Commercial<br />
liquor vendors<br />
Fig. 2 Distribution channels for imported wine<br />
Overseas wine makers<br />
(of bulk wine)<br />
<strong>Japan</strong>ese wine makers<br />
Primary wholesalers<br />
General<br />
liquor stores<br />
Food service establishments<br />
Secondary wholesalers<br />
Discount<br />
liquor stores<br />
Consumers<br />
C-2. <strong>Alcoholic</strong> <strong>Beverages</strong> (<strong>Beer</strong>, wine, whisky, <strong>etc</strong>.)<br />
Overseas wine makers<br />
(of bottled wine)<br />
Liquor retailers<br />
Import trading<br />
company<br />
Supermarkets,<br />
department stores<br />
Convenience<br />
stores<br />
[<strong>Beer</strong>]<br />
According to industry viewpoint, while half the demand for beer is for household use and the other half is for<br />
business, most of the demand for happoshu is for household use.<br />
After the relaxation of regulations for a general alcohol retail license as of September 2003, stores handling<br />
beer and happoshu steadily increased, although they are reluctant to newly handle wine and whisky. New<br />
licenses were acquired not only by traditional liquor discount stores and general liquor stores, but also by<br />
supermarkets and convenience stores. Although beer and happoshu have a low profit margin, their ability to<br />
attract customers is attractive, and as such, competition along these channels is expected to intensify in the<br />
future.<br />
Regarding beer sales, as of January 2005, Kirin <strong>Beer</strong> no longer employs the three grade price system,<br />
traditionally comprised of the shipping, wholesale, and retail levels, in an effort to equalize business<br />
transactions in response to previously excessive cost competition and the problem of rebates that was<br />
associated with it, and to ensure fair profit by intermediary distribution. Kirin also discontinued volume rebates<br />
associated with sales volume, and function rebates based on services in the distribution function, and switched<br />
over to an "open price system." With the adoption of this new transaction system, wholesalers along with<br />
manufactures requested retailers to raise the delivery price, but most major supermarkets and general<br />
merchandise stores refused to do so. According to Kirin <strong>Beer</strong>, 90% of the companies accepted new delivery<br />
prices, but the sales quantity is estimated to have remained at 60%.<br />
In this environment, most imported beer and overseas brand beer produced in <strong>Japan</strong>, have a stronger tendency<br />
to focus business demand in sales and at general merchandise stores in big cities and restaurants. The strategy<br />
is to first pioneer restaurants that will accept their own brand, next develop their own brand image and solidify<br />
the customers, and then gradually expand into the household market. Meanwhile, draft beer in the barrel has<br />
been effective in opening up the business market and useful for differentiation at restaurants.<br />
[<strong>Whisky</strong>]<br />
Regarding the channels of distribution of imported whisky, overseas manufacturers set the licensed import<br />
route, and parallel importers set the parallel import route.<br />
Parallel-import volumes are affected by market conditions, including overseas distribution volumes and<br />
exchange rates. In recent years, the trend has been downward.<br />
According to industry sources, retail outlets for whisky are divided among commercial liquor vendors (30%),<br />
discount liquor stores (25%), ordinary liquor stores (16%), supermarkets (15%) and convenience stories (12%).<br />
Channel competition is increasing.<br />
Marketing Guide for <strong>ASEAN</strong> Exporters to <strong>Japan</strong><br />
189
C-2. <strong>Alcoholic</strong> <strong>Beverages</strong> (<strong>Beer</strong>, wine, whisky, <strong>etc</strong>.)<br />
< <strong>Beer</strong> ><br />
Licensed<br />
production<br />
Fig. 3 Distribution channels for imported beer and whisky<br />
Sole import agencies<br />
(Importers / <strong>Japan</strong>ese makers)<br />
Primary wholesalers<br />
Commercial<br />
liquor vendors<br />
General<br />
liquor stores<br />
Food service establishments<br />
Overseas manufacturers<br />
Secondary wholesalers<br />
Discount<br />
liquor stores<br />
Consumers<br />
Liquor retailers<br />
Overseas wholesalers<br />
Supermarkets,<br />
department stores<br />
Parallel importers<br />
Convenience<br />
stores<br />
2. Trade Trends<br />
(1) Import Trends in <strong>Japan</strong><br />
Importation of all alcoholic beverages in 2005 was 415,765kl and 194,567 million yen, with a decrease in<br />
both the import volume and import value since 2002, reflecting the stagnation of the domestic alcohol<br />
consumption volume.<br />
<strong>Wine</strong> gained the largest share among imported alcohol, at 160,152kl, for a 38.5% share of the volume base,<br />
and 113,443 million yen, a 58.3% share of the value base. This is followed by other distilled alcoholic<br />
beverages including shochu (94,471kl, share 22.7%), beer and happoshu (62,764kl, share 15.1%) in the volume<br />
base, and whisky (23,430 million yen, share 12.0%), other distilled alcoholic beverages (14,080 million yen,<br />
share 7.2%) in the value base, this ranking has remained the same for several years.<br />
Among the imported alcoholic beverage market, imports of other types of alcoholic beverages (fruit-based<br />
alcoholic beverages) increased in 2005 to 694 million yen in the value base, a 25.8% increase over the previous<br />
year, and to 5,896kl in the volume base, a 26.7% increase over the previous year. This is considered to be the<br />
result of the popularity of the low-alcohol boom in recent years.<br />
On the other hand, beer and happoshu was 62,764kl in volume base, a 2.1% decrease over the previous year,<br />
although the value base was 7,383 million yen, a 5.9% increase over the previous year. This is thought to be a<br />
result of progress made in the expansion of beer from Europe, which has a high single price. Also, the sale of<br />
vodka, as a basic ingredient in low-alcoholic beverages, such as the popular chuhai cans, has slowed the<br />
downward trend experienced in the past several years in the import value, at 1,214 million yen, a 17% increase<br />
in the value base.<br />
Fig. 4 Trends in <strong>Japan</strong>’s alcohol imports<br />
(\ million)<br />
250,000<br />
200,000<br />
150,000<br />
100,000<br />
50,000<br />
0<br />
[Total import value] [Import value by category]<br />
2001 2002 2003 2004 2005<br />
(year)<br />
Marketing Guide for <strong>ASEAN</strong> Exporters to <strong>Japan</strong><br />
190<br />
(\ million)<br />
120,000<br />
100,000<br />
80,000<br />
60,000<br />
40,000<br />
20,000<br />
0<br />
<strong>Beer</strong> and happoshu<br />
<strong>Wine</strong><br />
Others<br />
<strong>Whisky</strong><br />
2001 2002 2003 2004 2005<br />
(year)
C-2. <strong>Alcoholic</strong> <strong>Beverages</strong> (<strong>Beer</strong>, wine, whisky, <strong>etc</strong>.)<br />
Value Volume<br />
2001 2002 2003 2004 2005 2001 2002 2003 2004 2005<br />
<strong>Wine</strong> 95,651 100,231 104,254 113,532 113,443 171,833 170,042 162,938 167,900 160,152<br />
<strong>Beer</strong> and Happoshu 7,867 8,784 8,514 6,971 7,383 75,987 78,934 79,117 64,117 62,764<br />
<strong>Whisky</strong> 44,340 38,100 31,540 24,468 23,430 49,671 42,368 27,552 19,728 17,926<br />
Others (subtotal) 55,627 56,326 53,812 54,932 50,311 152,102 158,679 171,870 187,380 174,923<br />
Other distilled liquors 12,271 13,464 14,566 15,550 14,080 75,680 83,980 91,663 103,892 94,471<br />
Brandy 23,404 21,559 16,562 15,457 13,183 8,877 7,509 6,798 6,106 5,264<br />
Liquor and cordials 9,049 9,745 11,362 12,256 12,125 14,340 13,583 18,469 18,973 18,714<br />
Fermented alcohol<br />
(f ruit added, <strong>etc</strong>.)<br />
Other f ermented<br />
930 1,286 1,840 2,463 2,456 3,709 4,666 9,170 12,271 12,972<br />
bev erages (apple<br />
liquor, pear liquor, <strong>etc</strong>.)<br />
3,545 3,907 3,377 3,004 2,432 17,229 16,894 14,190 13,141 10,307<br />
Sy nthetic sake and<br />
white sake<br />
1,831 1,697 1,533 1,496 1,447 19,528 17,703 17,534 18,116 17,449<br />
Gin and genever 1,885 1,858 1,773 1,724 1,320 3,524 3,433 3,190 2,976 2,485<br />
Vodka 1,075 1,139 1,082 1,037 1,214 2,707 2,903 2,758 2,669 2,384<br />
Rum and tafia 1,019 968 968 1,115 1,051 2,114 2,025 1,859 1,977 1,966<br />
Other alcoholic beverages 317 404 470 552 694 1,991 3,458 3,701 4,652 5,896<br />
Sake and unfiltered sake 301 299 279 277 307 2,403 2,527 2,537 2,608 3,016<br />
Total 203,486 203,441 198,121 199,904 194,567 449,592 450,024 441,477 439,125 415,765<br />
Unit : value = \ million, volume = kl Source : Trade Statistics, Ministry of Finance<br />
Fig. 5 Trends in alcohol imports by category in 2005<br />
Value Volume Average unit price<br />
Value Share<br />
Yearly<br />
change Volume Share<br />
Yearly<br />
change<br />
2004 2005<br />
<strong>Wine</strong> 113,443 58.3% 99.9 160,152 38.5% 95.4 676 708<br />
Whiskey 23,430 12.0% 95.8 17,926 4.3% 90.9 1,240 1,307<br />
Other distilled liquors 14,080 7.2% 90.5 94,471 22.7% 90.9 150 149<br />
Brandy 13,183 6.8% 85.3 5,264 1.3% 86.2 2,532 2,505<br />
Liquor and cordials 12,125 6.2% 98.9 18,714 4.5% 98.6 646 648<br />
<strong>Beer</strong> and happoshu 7,383 3.8% 105.9 62,764 15.1% 97.9 109 118<br />
Fermented alcohol (fruit added, <strong>etc</strong>.) 2,456 1.3% 99.7 12,972 3.1% 105.7 201 189<br />
Other f ermented bev erages<br />
(apple liquor, pear liquor, <strong>etc</strong>.)<br />
2,432 1.3% 81.0 10,307 2.5% 78.4 229 236<br />
Synthetic sake and white sake 1,447 0.7% 96.7 17,449 4.2% 96.3 83 83<br />
Gin and genever 1,320 0.7% 76.5 2,485 0.6% 83.5 579 531<br />
Vodka 1,214 0.6% 117.0 2,384 0.6% 89.3 389 509<br />
Rum and tafia 1,051 0.5% 94.3 1,966 0.5% 99.4 564 535<br />
Other alcoholic beverages 694 0.4% 125.8 5,896 1.4% 126.7 119 118<br />
Sake and unfiltered sake 307 0.2% 110.9 3,016 0.7% 115.6 106 102<br />
Total 194,567 100.0% 97.3 415,765 100.0% 94.7 455 468<br />
Unit : value = \ million, volume = kl, yearly change over previous year = %, average unit price = \ per kl<br />
Source : Trade Statistics, Ministry of Finance<br />
(2) Principal Exporters to JAPAN and <strong>ASEAN</strong>’s Position<br />
Among countries exporting to <strong>Japan</strong>, imports from France were the largest in the value base for all alcoholic<br />
beverages, with a dominant share of 48.2% (93,809 million yen). This mainly consists of wine, with the results<br />
of the high price of French wine outstanding (refer to Fig. 6. Average unit price). Imports from Italy ranked<br />
second, largely consisting of wine, similar to France (share 8.1%, 15,764 million yen), Imports from Korea<br />
ranked third overall, and ranked first for beer, (share 7.1%, 13,795 million yen), this rank has not changed for<br />
several years. Imports from the whole EU district, which includes a variety of alcoholic beverages such as wine,<br />
beer, whisky, and gin, gained a 73.8% share in the value base.<br />
Meanwhile, imports from the entire <strong>ASEAN</strong> region gained a 1.0% share in the value base, consisting of beer,<br />
synthetic sake, white sake, and other alcohol beverages, gin and genever. (⇒Fig.11)<br />
On the other hand, imports from Korea had the largest share in the volume base, occupying 24.2%<br />
(100,414kl). (⇒Fig. 6) A large amount of shochu is imported from Korea, in addition to private brand<br />
products, and the development and import of beer by <strong>Japan</strong>. This is followed by France ranking second with an<br />
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191
C-2. <strong>Alcoholic</strong> <strong>Beverages</strong> (<strong>Beer</strong>, wine, whisky, <strong>etc</strong>.)<br />
18.6% share (77,416kl), China ranking third with a 9.7% share (40,217kl). Imports from China, similar to<br />
Korea, were mainly basic alcohol ingredients, in addition to private brand products and development and<br />
import products.<br />
(\ million)<br />
120,000<br />
100,000<br />
80,000<br />
60,000<br />
40,000<br />
20,000<br />
0<br />
Fig. 6 Principal exporting countries and regions of alcohols to <strong>Japan</strong><br />
[Import value from major countries] [Share of import value in 2005]<br />
France<br />
Italy<br />
Korea<br />
2001 2002 2003 2004 2005<br />
(year)<br />
Korea<br />
7.1%<br />
Others<br />
18.1%<br />
<strong>ASEAN</strong><br />
1.0%<br />
EU<br />
73.8%<br />
Value Value Value Value Volume Value Volume<br />
Averaga<br />
unit price<br />
France 85,608 88,804 88,162 96,745 83,692 93,809 48.2% 77,416 18.6% 1,212<br />
Italy 14,743 15,883 17,830 16,842 34,460 15,764 8.1% 31,071 7.5% 507<br />
Korea 11,891 12,778 13,800 14,362 105,981 13,795 7.1% 100,414 24.2% 137<br />
China 3,499 3,976 4,515 5,208 40,191 5,265 2.7% 40,217 9.7% 131<br />
Australia 3,492 4,169 4,934 4,991 16,798 5,248 2.7% 16,891 4.1% 311<br />
Germany 4,738 4,730 4,472 4,027 9,094 3,963 2.0% 8,640 2.1% 459<br />
Chile 3,929 3,595 3,342 3,426 13,670 3,456 1.8% 12,681 3.1% 273<br />
Ireland 1,099 1,284 1,413 1,522 5,639 1,984 1.0% 7,337 1.8% 270<br />
Mexico 1,796 1,908 1,842 1,678 7,031 1,693 0.9% 7,034 1.7% 241<br />
Netherland 1,357 1,772 1,693 1,919 6,290 1,607 0.8% 5,867 1.4% 274<br />
Canaka 1,558 2,213 1,382 1,080 4,259 1,106 0.6% 4,006 1.0% 276<br />
Others 72,691 66,316 57,809 51,102 122,569 49,590 25.5% 114,064 27.4% 435<br />
Total 203,486 203,441 198,121 199,904 439,125 194,567 100.0% 415,765 100.0% 468<br />
(E U) 149,678 148,710 145,057 148,707 171,968 143,530 73.8% 162,475 39.1% 883<br />
(<strong>ASEAN</strong>) 1,810 2,045 2,052 2,011 20,200 1,949 1.0% 18,968 4.6% 103<br />
Unit : value = \ million, volume = kl, average unit price = \ per kl Source : Trade Statistics, Ministry of Finance<br />
[<strong>Wine</strong>]<br />
After an outstanding increase in red wine in 1998, wine export to <strong>Japan</strong> continued to decrease until 2000 due<br />
to inventory adjustment, then temporarily recovered in 2001. However since then, a downward trend has been<br />
experienced in both volume and value.<br />
Viewed by country, imports from France were outstanding at 73,434 million yen(share 64.7%)in the value<br />
base, and 63,132kl (share 39.4%)in the volume base, followed by Italy (value 13,825 million yen, share<br />
12.2%, volume 26,863kl, share16.8%), and then the U.S.(value 6,530 million yen, share 5.8%, volume<br />
19,133kl, share 11.9%).<br />
<strong>Wine</strong> exports from Australia to <strong>Japan</strong> have quickly grown over the past several years, the only 2 digit increase<br />
among the top 5 countries (value 4,409 million yen, 20% increase over the previous year, volume 9,358kl,<br />
24% increase over the previous year), climbing to fifth, passing Chili. This is considered to be the result of<br />
being the first to introduce and expand internationally the screw cap to preserve wine quality, wine with a good<br />
balance of label, taste, price, and ease in purchasing by consumers. “Yellow Tail”, handled by Sapporo <strong>Beer</strong>, is<br />
considered to be the forerunner.<br />
Beaujolais Nouveau was also in good form in 2005, but was insufficient to raise the overall level of wine<br />
imports to <strong>Japan</strong>.<br />
Also, by type, popularity of the rosé type was outstanding among all the sparkling wines, including<br />
champagne. Imports from France gained 45.6% of the total volume of sparkling wines, and when combined<br />
with Italy at 22.2% and Spain at 19.7%, the 3 countries gained nearly 90% of all shares.<br />
Conversely, hardly any wine was exported to <strong>Japan</strong> from <strong>ASEAN</strong> at present.<br />
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C-2. <strong>Alcoholic</strong> <strong>Beverages</strong> (<strong>Beer</strong>, wine, whisky, <strong>etc</strong>.)<br />
Fig.7 Principal exporting countries and regions of wine to <strong>Japan</strong><br />
2001 2002 2003<br />
2004 2005<br />
Value Value Value Value Volume Value Volume<br />
Average<br />
Unit Price<br />
France 57,534 61,498 65,400 74,476 68,635 73,434 64.7% 63,132 39.4% 1,163<br />
Italy 13,623 14,887 15,217 14,244 28,364 13,825 12.2% 26,863 16.8% 515<br />
U.S.A. 7,266 7,099 6,850 6,432 19,249 6,530 5.8% 19,133 11.9% 341<br />
Spain 3,349 3,519 3,787 4,317 10,817 5,123 4.5% 12,000 7.5% 427<br />
Australia 2,000 2,245 2,714 3,649 7,482 4,409 3.9% 9,358 5.8% 471<br />
Chile 3,926 3,584 3,338 3,389 13,505 3,389 3.0% 12,496 7.8% 271<br />
Germany 3,859 3,803 3,568 3,320 6,516 3,182 2.8% 5,718 3.6% 556<br />
Argentina 818 691 677 737 6,127 686 0.6% 4,436 2.8% 155<br />
Portugal 574 515 600 596 829 592 0.5% 806 0.5% 735<br />
Others 2,702 2,389 2,103 2,371 6,376 2,273 2.0% 6,210 3.9% 366<br />
Total 95,651 100,231 104,254 113,532 167,900 113,443 100.0% 160,152 100.0% 708<br />
(E U) 79,145 84,491 88,815 97,615 116,263 96,587 85.1% 109,160 68.2% 885<br />
(<strong>ASEAN</strong>) 12 11 10 8 17 9 0.0% 23 0.0% 389<br />
Unit : value = \ million, volume = kl, averaga unit price = \ per kl Source : Trade Statistics, Ministry of Finance<br />
[<strong>Beer</strong>]<br />
The volume of imported beer in 2005 was 62,764kl, a 2.1% decrease over the previous year. When viewed by<br />
country, imports from Korea were the largest, with 32.2% of the volume base, and 20% of the total value base.<br />
It is suggested that this is caused by the large percentage OEM happoshu from <strong>Japan</strong>.<br />
Imports from Ireland were second as the rich flavor of “Guinness <strong>Beer</strong>" ignited the business market by the<br />
sales promotion carried out by Sapporo <strong>Beer</strong>, the import company, with the amount of imports tripling in 5<br />
years on the wave of the premium beer boom.<br />
Also, Mexico ranked third in the value base, with “Corona" the staple merchandise. The drinking style of<br />
squeezing a lime and drinking straight from the bottle is gaining popularity. Furthermore, imports from each of<br />
the top 5 countries have an upward trend. For example, imports of “Foster’s" by Australia have steadily<br />
increased.<br />
As for <strong>ASEAN</strong>, imports from Thai, Vietnam, and the Philippines, <strong>etc</strong>., can be mentioned. Among them<br />
exports by Vietnam to <strong>Japan</strong> greatly expanded, with a 93.1% increase over the previous year. The main force<br />
from Thai is “Singha," and has steadily grown in the business market through Thai and ethnic food restaurants,<br />
as well as "Chang <strong>Beer</strong>," by a local top manufacturer, and premium "Phuket <strong>Beer</strong>." Also, brands such as “San<br />
Miguel” from the Philippines, "333 <strong>Beer</strong>” and “Saigon <strong>Beer</strong>” from Vietnam, “Bintang,” “Bali-Hai” from<br />
Indonesia and "Tiger <strong>Beer</strong>" from Singapore, have quietly become popular through mail order sales, <strong>etc</strong>.<br />
(\ million)<br />
Fig.8 Principal exporting countries and regions of beer to <strong>Japan</strong><br />
[Import value from major countries] [Share of import value in 2005]<br />
1,600<br />
1,400<br />
Korea<br />
1,200<br />
1,000<br />
800 Mexico<br />
600<br />
Ireland<br />
400<br />
200<br />
0<br />
Australia<br />
2001 2002 2003 2004 2005<br />
(year)<br />
Ireland<br />
17.5%<br />
Others<br />
14.9%<br />
Korea<br />
20.6%<br />
<strong>ASEAN</strong><br />
3.0%<br />
EU<br />
44.1%<br />
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C-2. <strong>Alcoholic</strong> <strong>Beverages</strong> (<strong>Beer</strong>, wine, whisky, <strong>etc</strong>.)<br />
2001 2002 2003<br />
2004 2005<br />
Value Value Value Value Volume Value Volume<br />
Average<br />
unit price<br />
Korea 1,109 1,067 1,310 1,379 19,337 1,520 20.6% 20,195 32.2% 75<br />
Ireland 427 758 726 1,011 5,197 1,289 17.5% 6,498 10.4% 198<br />
Mexico 866 953 834 762 5,866 806 10.9% 5,891 9.4% 137<br />
Australia 237 465 977 489 5,479 626 8.5% 6,658 10.6% 94<br />
Belgium 282 506 378 439 1,695 562 7.6% 2,340 3.7% 240<br />
U.K. 293 535 702 418 1,466 439 5.9% 1,698 2.7% 259<br />
Netherland 541 606 618 491 4,464 436 5.9% 4,383 7.0% 99<br />
U.S.A. 2,820 2,273 1,119 453 4,992 356 4.8% 3,242 5.2% 110<br />
Germany 382 371 415 240 1,725 339 4.6% 2,157 3.4% 157<br />
Others 909 1,250 1,435 1,289 13,895 1,012 13.7% 9,702 15.5% 104<br />
Total 7,867 8,784 8,514 6,971 64,117 7,383 100.0% 62,764 100.0% 118<br />
(E U) 2,066 2,935 2,989 2,761 15,603 3,255 44.1% 18,236 29.1% 178<br />
(<strong>ASEAN</strong>) 217 275 382 214 1,823 219 3.0% 1,844 2.9% 119<br />
Unit : value = \ million, valume = kl, average unit price = \ per kl Source : Trade Statistics, Ministry of Finance<br />
[<strong>Whisky</strong>]<br />
A downward trend in whisky exported to <strong>Japan</strong> has continued since 2001, due to the decrease in alcohol<br />
consumption in <strong>Japan</strong>, trends toward low-price and low-alcohol, and the decline in corporate and restaurant<br />
demand, falling to 52.8% in the value base, 36.1% in the volume base in the past 5 years. In 2005, there was a<br />
4.2% decrease over the previous year in value and about a 10% decrease in volume.<br />
When viewed by country, imports from England, the origin of Scotch whisky, outclassed its competitors,<br />
taking a 73.1% share in the value base, 59% share in the volume base. Imports from the U.S. ranked second<br />
with bourbon whisky and rye whisky. Imports from these 2 countries occupy 97.5% of all whisky imports. The<br />
remaining imports include Canadian whisky from Canada and Irish whisky from Ireland.<br />
In recent years, single-malt whisky has gained popularity in the whisky market in <strong>Japan</strong>, and according to<br />
Suntory, imports of “The McCarran” produced in Scotland increased 17% over the previous year, and premium<br />
whisky, such as "Yamazaki" produced in <strong>Japan</strong>, are also in good form. The downward trend is not considered to<br />
continue.<br />
Among countries of <strong>ASEAN</strong>, Thai exports whisky to <strong>Japan</strong> in a very small quantity.<br />
Fig.9 Principal exporting countries and regions of whiskey to <strong>Japan</strong><br />
2001 2002 2003<br />
2004 2005<br />
Value Value Value Value Volume Value Volume<br />
Average<br />
unit price<br />
U.K. 34,134 28,364 23,415 18,717 12,240 17,126 73.1% 10,578 59.0% 1,619<br />
U.S.A. 8,763 7,640 6,699 5,199 6,729 5,709 24.4% 6,659 37.1% 857<br />
Canada 753 1,771 897 419 587 446 1.9% 567 3.2% 787<br />
Ireland 534 272 494 86 90 97 0.4% 92 0.5% 1,054<br />
France 37 23 11 23 50 24 0.1% 7 0.0% 3,456<br />
Korea 89 1 - - - 13 0.1% 3 0.0% 5,244<br />
Netherland 8 6 0 1 0 6 0.0% 10 0.1% 576<br />
Thailand - - 1 0 0 2 0.0% 3 0.0% 584<br />
Brazil - - - - - 1 0.0% 1 0.0% 2,150<br />
Others 23 23 23 24 32 6 0.0% 7 0.0% 804<br />
Total 44,340 38,100 31,540 24,468 19,728 23,430 100.0% 17,926 100.0% 1,307<br />
(E U) 34,718 28,676 23,935 18,832 12,386 17,256 73.6% 10,692 59.6% 1,614<br />
(<strong>ASEAN</strong>) - 3 6 0 0 2 0.0% 4 0.0% 508<br />
Unit : value = \ million, volume = kl, average unit price = \ per kl Source : Trade Statistics, Ministry of Finance<br />
[Other <strong>Alcoholic</strong> <strong>Beverages</strong>]<br />
When viewing the importation of alcoholic beverages other than the aforementioned according to the value<br />
base, imports from Korea have a dominant share of nearly 80% for other distilled alcoholic beverages, included<br />
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C-2. <strong>Alcoholic</strong> <strong>Beverages</strong> (<strong>Beer</strong>, wine, whisky, <strong>etc</strong>.)<br />
shochu. It is suggested that in addition to the stable demand at restaurants, and the stable popularity of Korean<br />
food, consumption will increase through the shochu boom. Furthermore, imports from <strong>ASEAN</strong> reached 300<br />
million yen (share 2.1%), although not ranking among the top 5 countries.<br />
France has a virtual monopoly on Brandy, with a 98.1% share (12,931 million yen).<br />
France also has the highest share for liquor cordial at 50% (6,132 million yen), and is followed by Italy with a<br />
14.2% share (1,726 million yen), depending largely on the price difference of the average unit price.<br />
Regarding fermented alcohol, France ranks first (1,034 million yen, share 42.1%), China ranks second<br />
(38.9% share), the U.S. third (9.2% share), with France outclassing its competitors with a higher average unit<br />
price.<br />
China ranks first (1,810 million yen) for apple liquor and pear liquor, with a 74.4% share. Korea ranks second<br />
(6.6% share), Taiwan third (4.1% share), and these three Asian countries occupy a 85.1% share, although most<br />
is considered to be development and import products by <strong>Japan</strong>ese manufacturers and private brand products.<br />
Regarding synthetic alcohol and white sake, imports from China are the highest, with China holding a 49.7%<br />
share (720 million yen), followed by Thailand with a 25.8% share (373 million yen), Malaysia with a 15.6%<br />
share (226 million yen) and Vietnam with an 8.9% share (129 million yen). <strong>ASEAN</strong> has a 50.3% share. There<br />
is a high demand for Thai, Malaysian, Vietnamese restaurants, <strong>etc</strong>., as well as for ingredients.<br />
Regarding imports of gin and genever, England ranks first with a 87.8% share (1,158 million yen). England<br />
has many internationally recognized manufacturers such as Gilbey, Gordon, Beefeater, Bombay Sapphire, <strong>etc</strong>.,<br />
and many of these are imported. The Philippines ranks second (9.9% share, 131 million yen), so <strong>ASEAN</strong> has a<br />
9.9% share.<br />
Regarding imports of vodka, Korea has a 49.7% share (603 million yen), followed by Poland, production<br />
origin of vodka, with a 10.3% share (125 million yen), the U.S. with a 9.0% share (109 million yen), and the<br />
Philippines (8.7% share, 106 million yen). Furthermore Korea is ranked first due to the affiliation by Sapporo<br />
<strong>Beer</strong> with Smirnoff, a world famous American vodka brand, and Sapporo <strong>Beer</strong> imports and uses developed and<br />
imported products from Korea.<br />
Regarding rum and tafia, most imports are from Central South America, with Jamaica ranking first (42.6%<br />
share, 448 million yen), Puerto Rico second (21.7% share, 228 million yen), France third (7.5% share, 79<br />
million yen), Guatemala fourth, and Cuba fifth. In particular, Guatemala has an outstanding average unit price,<br />
with <strong>Japan</strong> importing rare premium rum (Ron Zacapa Centenario).<br />
For other alcoholic beverages, Malaysia ranks first (43.9% share, 305 million yen), followed by China<br />
(40.8% share), Vietnam (12.2% share), and Thailand (2.7% share), with <strong>ASEAN</strong> occupying a 59.1% share. It is<br />
suggested that this is due to the large quantity of imported private <strong>Japan</strong>ese brand low-alcohol beverages,<br />
which are very popular in the domestic market, and the importation of basic ingredients used in production in<br />
<strong>Japan</strong>.<br />
Regarding sake and unrefined sake, Korea occupies a 76.6% share at 235 million yen, with Makkori,<br />
traditional unrefined Korean sake, considered to be a majority item. This is followed by Australia ranking<br />
second (14.8% share, 45 million yen), China third (7.1% share, 22 million yen), and Vietnam fourth (1.6%<br />
share, 5 million yen).<br />
Fig.10 Principal exporting countries and regions of alcoholic beverages by category<br />
(2005, in value basis)<br />
Other distilled liquors Brandy<br />
Country/<br />
Region<br />
Value Share<br />
Yearly<br />
change<br />
Average<br />
unit price<br />
Country Value Share<br />
Yearly<br />
change<br />
Average<br />
unit price<br />
1 Korea 11,149 79.2% 89.0 147 France 12,931 98.1% 85.0 2,584<br />
2 China 1,050 7.5% 101.6 110 Italy 132 1.0% 113.8 2,978<br />
3 Mexico 807 5.7% 98.6 782 Chile 47 0.4% 208.1 324<br />
4 Canada 350 2.5% 79.6 145 U.K. 20 0.2% 92.4 10,968<br />
5 Taiw an 338 2.4% 107.7 164 Spain 12 0.1% 66.1 307<br />
(<strong>ASEAN</strong> Total) 300 2.1% 101.6 83 1 0.0% 102.7 703<br />
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C-2. <strong>Alcoholic</strong> <strong>Beverages</strong> (<strong>Beer</strong>, wine, whisky, <strong>etc</strong>.)<br />
Country Value Share<br />
Yearly<br />
change<br />
Average<br />
unit price<br />
Country Value Share<br />
Yearly<br />
change<br />
Average<br />
unit price<br />
1 France 6,132 50.6% 106.6 848 France 1,034 42.1% 110.7 765<br />
2 Italy 1,726 14.2% 71.6 466 China 956 38.9% 101.4 112<br />
3 U.S.A. 1,253 10.3% 119.1 910 U.S.A. 227 9.2% 77.1 96<br />
4 Netherland 1,144 9.4% 83.1 795 Germany 102 4.1% 77.6 271<br />
5 Ireland 593 4.9% 140.6 808 Spain 80 3.2% 84.4 340<br />
20 0.2% 32.6 117 8 0.3% 57.5 174<br />
Other fermented beverages (apple liquor, pear liquor, <strong>etc</strong>.) Synthetic sake and w hite sake<br />
Country/<br />
Region<br />
Value Share<br />
Yearly<br />
change<br />
Average<br />
unit price<br />
Country Value Share<br />
Yearly<br />
change<br />
Average<br />
unit price<br />
1 China 1,810 74.4% 101.5 230 China 720 49.7% 106.5 86<br />
2 Korea 160 6.6% 107.9 265 Thailand 373 25.8% 98.4 68<br />
3 Taiw an 101 4.1% 94.0 316 Malaysia 226 15.6% 76.5 119<br />
4 Australia 98 4.0% 14.1 246 Vietnam 129 8.9% 89.5 74<br />
5 Canada 66 2.7% 188.9 122<br />
4 0.2% 66.9 311 727 50.3% 88.7 80<br />
Gin and genever Vodka<br />
Country Value Share<br />
Yearly<br />
change<br />
Average<br />
unit price<br />
Country Value Share<br />
Yearly<br />
change<br />
Average<br />
unit price<br />
1 U.K. 1,158 87.8% 76.4 586 Korea 603 49.7% - 642<br />
2 Philippines 131 9.9% 78.4 307 Poland 125 10.3% 95.2 508<br />
3 U.S.A. 17 1.3% 89.7 301 U.S.A. 109 9.0% 22.0 364<br />
4 Germany 5 0.3% 103.2 611 Philippines 106 8.7% 81.6 326<br />
5 France 4 0.3% 76.1 637 Sw eden 83 6.8% 109.0 513<br />
131 9.9% 78.4 307 108 8.9% 83.1 326<br />
Rum and tafia Other spirituous beverages<br />
Country Value Share<br />
Yearly<br />
change<br />
Average<br />
unit price<br />
Country Value Share<br />
Yearly<br />
change<br />
Average<br />
unit price<br />
1 Jamaica 448 33.9% 92.6 512 Malaysia 305 25.1% 157.1 152<br />
2 Puerto Rico 228 17.3% 109.9 548 China 283 23.3% 108.2 111<br />
3 France 79 6.0% 77.2 407 Vietnam 85 7.0% 125.0 79<br />
4 Guatemala 55 4.1% 102.5 2,285 Thailand 19 1.6% 109.1 72<br />
5 Cuba 42 3.2% 79.3 471 Mexico 2 0.1% - 2,329<br />
4 0.3% 61.3 537 410 33.8% 146.2 122<br />
Sake and unfiltered sake<br />
Country Value Share<br />
Yearly<br />
change<br />
Average<br />
unit price<br />
1 Korea 235 17.8% 132.9 96<br />
2 Australia 45 3.4% 64.6 173<br />
3 China 22 1.6% 91.1 91<br />
4 Vietnam 5 0.4% 83.6 78<br />
5<br />
(<strong>ASEAN</strong> Total)<br />
(<strong>ASEAN</strong> Total)<br />
(<strong>ASEAN</strong> Total)<br />
(<strong>ASEAN</strong> Total)<br />
(<strong>ASEAN</strong> Total)<br />
Liqueor and cordials Fermented alcohol (fruit added, <strong>etc</strong>.)<br />
5 0.4% 83.6 78<br />
Unit : value = \ million, yearly change over previous year = %, average unit price = \ per kl<br />
Source : Trade Statistics, Ministry of Finance<br />
Marketing Guide for <strong>ASEAN</strong> Exporters to <strong>Japan</strong><br />
196
(\ million)<br />
2,500<br />
2,000<br />
1,500<br />
1,000<br />
500<br />
0<br />
<strong>ASEAN</strong><br />
Total<br />
Vietnam<br />
1,810<br />
Fig. 11 Alcohol imports from <strong>ASEAN</strong> by country /category<br />
2,045 2,052 2,011 1,949<br />
2001 2002 2003 2004 2005 (year)<br />
(kl)<br />
25,000<br />
20,000<br />
15,000<br />
10,000<br />
5,000<br />
0<br />
C-2. <strong>Alcoholic</strong> <strong>Beverages</strong> (<strong>Beer</strong>, wine, whisky, <strong>etc</strong>.)<br />
[Value] [Volume]<br />
17,754<br />
19,603 20,275 20,200<br />
18,968<br />
2001 2002 2003 2004 2005<br />
Value Volume<br />
(year)<br />
Average<br />
unit price<br />
2001 2002 2003 2004 2005 2001 2002 2003 2004 2005 2005<br />
<strong>Wine</strong> 12 11 10 8 9 15 28 27 17 23 389<br />
<strong>Beer</strong> and happoshu 217 275 382 214 219 1,608 2,141 4,165 1,823 1,844 119<br />
<strong>Whisky</strong> - 3 6 0 2 - 6 12 0 4 508<br />
liquors 237 402 266 295 300 3,157 5,600 3,495 3,875 3,602 83<br />
Brandy<br />
Liquor and<br />
- 2 1 1 1 - 2 1 1 1 703<br />
cordials<br />
Fermented<br />
alcohol (fruit<br />
- 1 40 63 20 - 1 370 737 174 117<br />
added, <strong>etc</strong>.)<br />
Other<br />
fermented<br />
8 9 7 13 8 47 47 40 72 44 174<br />
beverages<br />
8 5 2 6 4 33 16 4 18 13 311<br />
Synthetic sake<br />
and w hite sake 1,017 894 767 820 727 11,041 9,581 9,208 10,345 9,078 80<br />
Gin and genever 150 209 210 167 131 625 760 748 553 427 307<br />
Vodka 85 127 136 130 108 335 444 462 413 331 326<br />
Rum and tafia 3 4 3 7 4 5 8 8 18 8 537<br />
Other alcoholic<br />
beverages<br />
Sake and<br />
63 97 221 280 410 778 901 1,701 2,263 3,356 122<br />
unfiltered sake 10 6 3 6 5 109 68 33 63 63 78<br />
Total 1,810 2,045 2,052 2,011 1,949 17,754 19,603 20,275 20,200 18,968 103<br />
Share in Total 0.9% 1.0% 1.0% 1.0% 1.0% 3.9% 4.4% 4.6% 4.6% 4.6%<br />
<strong>Wine</strong> 0 5 6 3 4 2 18 18 8 12 301<br />
<strong>Beer</strong> and happoshu 25 26 25 22 46 237 245 245 230 444 103<br />
liquors<br />
Liquor and<br />
136 307 199 261 271 1,954 4,775 3,121 3,783 3,516 77<br />
cordials - 1 13 33 7 - 1 215 569 111 61<br />
Synthetic sake<br />
and w hite sake 180 139 142 144 129 2,286 1,644 1,910 2,004 1,732 74<br />
Vodka - 1 1 0 2 - 3 5 1 6 350<br />
Other alcoholic<br />
beverages<br />
Sake and<br />
unfiltered<br />
48 43 55 68 85 601 466 529 757 1,079 79<br />
sake 10 6 3 6 5 109 68 33 63 63 78<br />
Total 400 530 444 538 549 5,188 7,220 6,076 7,415 6,964 79<br />
Share in Total 0.2% 0.3% 0.2% 0.3% 0.3% 1.2% 1.6% 1.4% 1.7% 1.7%<br />
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C-2. <strong>Alcoholic</strong> <strong>Beverages</strong> (<strong>Beer</strong>, wine, whisky, <strong>etc</strong>.)<br />
Malaysia<br />
Thailand<br />
Philippines<br />
Value Volume<br />
Average<br />
unit price<br />
2001 2002 2003 2004 2005 2001 2002 2003 2004 2005 2005<br />
Brandy - 1 0 - - - 1 0 - - -<br />
Liquors and<br />
cordials - 0 27 29 10 - 0 155 167 54 178<br />
Fermented<br />
alcohol (fruit<br />
added, <strong>etc</strong>.) - 1 0 0 1 - 2 1 1 1 402<br />
Synthetic<br />
sake and<br />
w hite sake 424 387 298 295 226 3,593 3,129 2,472 2,466 1,902 119<br />
Other alcoholic<br />
beverages - 36 148 194 305 - 219 921 1,254 2,007 152<br />
Total 424 425 473 519 541 3,593 3,351 3,549 3,888 3,965 136<br />
Share in Total 0.2% 0.2% 0.2% 0.3% 0.3% 0.8% 0.7% 0.8% 0.9% 1.0%<br />
<strong>Wine</strong> 6 5 4 5 5 14 10 9 9 11 490<br />
<strong>Beer</strong> and happoshu 109 124 96 102 98 747 839 690 803 768 128<br />
<strong>Whisky</strong> - - 1 0 2 - - 2 0 3 584<br />
Other distilled<br />
liquors 72 48 17 2 6 1,147 722 268 8 19 344<br />
Brandy<br />
Liquors and<br />
- 1 1 1 1 - 1 1 1 1 703<br />
cordials<br />
Fermented<br />
alcohol (fruit<br />
8 9 7 13 8 47 47 40 72 44 174<br />
added, <strong>etc</strong>.) 5 2 - 4 3 24 10 - 14 11 288<br />
Synthetic sake<br />
and w hite sake 316 341 326 379 373 4,010 4,519 4,808 5,839 5,443 68<br />
Rum and tafia 3 4 3 3 2 5 8 8 8 6 342<br />
Other alcoholic<br />
beverages 16 18 19 18 19 178 216 252 252 270 72<br />
Total 536 551 474 528 518 6,170 6,373 6,079 7,008 6,576 79<br />
Share in Total 0.3% 0.3% 0.2% 0.3% 0.3% 1.4% 1.4% 1.4% 1.6% 1.6%<br />
<strong>Beer</strong> and happoshu 45 78 225 62 48 322 691 2,941 541 373 128<br />
<strong>Whisky</strong><br />
Other distilled<br />
- 3 5 - - - 6 10 - - -<br />
liquors<br />
Liquor and<br />
22 41 46 28 16 46 93 96 76 50 329<br />
cordials<br />
Other<br />
fermented<br />
- - - - 4 - - - - 9 431<br />
beverages 2 2 2 1 0 7 4 2 2 1 578<br />
Synthetic sake<br />
and w hite sake 97 26 1 2 - 1,152 288 18 36 - -<br />
Gin and genever 150 209 210 167 131 625 760 748 553 427 307<br />
Vodka 85 127 134 130 106 335 441 457 412 325 326<br />
Rum and tafia - - - 4 2 - - - 9 2 834<br />
Total 401 486 622 394 307 2,487 2,283 4,272 1,630 1,187 259<br />
Share in Total 0.2% 0.2% 0.3% 0.2% 0.2% 0.6% 0.5% 1.0% 0.4% 0.3%<br />
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Value Volume<br />
C-2. <strong>Alcoholic</strong> <strong>Beverages</strong> (<strong>Beer</strong>, wine, whisky, <strong>etc</strong>.)<br />
Average<br />
unit price<br />
2001 2002 2003 2004 2005 2001 2002 2003 2004 2005 2005<br />
<strong>Beer</strong> and happoshu 20 27 18 13 11 147 202 149 123 108 104<br />
<strong>Whisky</strong> - - - - 0 - - - - 1 240<br />
liquors<br />
Liqueor and<br />
7 6 2 4 4 11 10 7 7 8 433<br />
cordials - - - 0 - - - - 1 - -<br />
Indonesia Other<br />
fermented<br />
beverages 0 - 0 - - 2 - 1 - - -<br />
Rum and tafia - - - - 1 - - - - 0 2,744<br />
Total 27 32 20 17 16 160 212 157 132 117 134<br />
Share in Total 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%<br />
Singapore<br />
18 14 13 11 12 115 114 102 91 105 112<br />
Laos<br />
1 1 3 1 4 11 8 22 6 36 120<br />
Myanmar<br />
3 6 3 3 2 21 42 19 21 17 144<br />
Cambodia<br />
1 - - 1 - 8 - - 8 - -<br />
Brunei<br />
- - - - - - - - - - -<br />
Unit : value = \ million, volume = kl, aveage unit price = \ per kl Source : Trade Statistics, Ministry of Finance<br />
(3) Market Share of Imports in <strong>Japan</strong><br />
<strong>Wine</strong> has the highest importation share in the alcohol market in <strong>Japan</strong>, with more than 60%. In addition to the<br />
importation of a wide variety of bottled wines from different countries, this is due in part to the fact that many<br />
<strong>Japan</strong>ese wines are blended with imported bulk wine during production, and as such, imported wine is essential<br />
for the wine market.<br />
On the other hand, beer has the highest volume share in the alcohol market (38.2%, refer to Fig.1), and is<br />
monopolized by 4 domestic manufacturers (Asahi <strong>Beer</strong>, Kirin <strong>Beer</strong>, Sapporo <strong>Beer</strong>, Suntory), with the share of<br />
imported products at 0.7%. Regarding happoshu, the share of imported products is slightly higher, because<br />
<strong>Japan</strong>ese private products, and developed and imported products, which are used as ingredients in production,<br />
are imported from Korea, <strong>etc</strong>.<br />
Also, some domestic manufacturers have concluded license contracts for overseas whisky brand products and<br />
manufacture the whisky in <strong>Japan</strong>, so the share of imported products remains at approximately 20%. This can be<br />
seen as the result of the good sale of domestic brand single malt whisky.<br />
<strong>Wine</strong><br />
<strong>Beer</strong><br />
Happoshu<br />
<strong>Whisky</strong><br />
Fig. 12 Share of imported alcoholic beverages in the <strong>Japan</strong>ese market<br />
FY2000 FY2001 FY2002 FY2003 FY2004<br />
Yearly<br />
change<br />
Domestic products 103,321 100,692 104,823 88,998 80,270 90.2%<br />
Imported products 165,588 158,418 164,855 158,996 160,521 101.0%<br />
Total 268,909 259,105 269,678 247,994 240,791 97.1%<br />
Imports’ share 61.6% 61.1% 61.1% 64.1% 66.7%<br />
Domestic products 5,388,686 4,777,006 4,270,694 3,929,359 3,810,116 97.0%<br />
Imported products 26,947 30,115 28,350 26,118 27,297 104.5%<br />
Total 5,415,633 4,807,121 4,299,044 3,955,477 3,837,413 97.0%<br />
Imports’ share 0.5% 0.6 % 0.7% 0.7% 0.7%<br />
Domestic products 1,696,412 2,344,669 2,603,407 2,533,199 2,538,877 100.2%<br />
Imported products 60,755 51,587 54,251 47,853 40,272 84.2%<br />
Total 1,757,167 2,396,256 2,657,658 2,581,052 2,579,149 99.9%<br />
Imports’ share 3.5% 2.2% 2.0% 1.9% 1.6%<br />
Domestic products 99,668 88,943 82,188 77,050 69,288 89.9%<br />
Imported products 25,787 23,167 23,492 19,615 16,829 85.2%<br />
Total 125,455 112,110 105,680 96,665 86,177 89.1%<br />
Imports’ share 20.6% 20.7% 22.2% 20.3% 19.5%<br />
Unit: kiloliters Source: National Tax Administration<br />
Note :These figures are calculated based on taxable volume and differ from the import figures above.<br />
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199
C-2. <strong>Alcoholic</strong> <strong>Beverages</strong> (<strong>Beer</strong>, wine, whisky, <strong>etc</strong>.)<br />
The taxable volume is regarded as equivalent to the volume of liquors distributed and sold in <strong>Japan</strong>. Liquor taxes are collected<br />
on domestic liquor when it is shipped from the factory, and on imported liquor when it is taken from the bonded warehouse.<br />
happoshu uses less malt than beer, they are classified as miscellaneous liquors under the Liquor Tax Law, and thus are subject<br />
to lower liquor taxes than beer.<br />
3. Key Considerations with regard to exports to <strong>Japan</strong><br />
(1) Regulations and Procedural Requirements at the time of Importing in <strong>Japan</strong><br />
<strong>Alcoholic</strong> beverage imports are subject to the provisions of the Food Sanitation Law and the Liquor Tax<br />
Law.<br />
1) Food Sanitation Law<br />
All food products to be imported for the purpose of sales and marketing are subject to the procedures of<br />
Food Sanitation Law. The Importers must submit a “Notification Form for Importation of Food, <strong>etc</strong>.” together<br />
with other necessary documents as ingredients list and production process chart when the processed food is<br />
the case, to the quarantine station at the port of entry. Upon examination of the documents, when the products<br />
are judged as subject to sanitary inspection, the inspection will be carried out inside bonded area and then<br />
decision will be made for import. The procedures required under the Food Sanitation Law is shown below.<br />
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200<br />
Fig. 13 Procedures required under the Food Sanitation Law<br />
Advance consultation service<br />
Advance information acquisition (regarding production methods, content of ingredients, <strong>etc</strong>.)<br />
Advance inspection (by the competent government agency of the exporting country,<br />
or the official laboratory registered with the Minister of Health, Labor and Welfare)<br />
Submission to the Quarantine Station<br />
(“Notification Form for Importation of Foods, <strong>etc</strong>.” and other related documents)<br />
Examination of documents<br />
Cargo required inspection Cargo not required inspection<br />
Failure Pass<br />
Reshipment, destruction,<br />
conversion to other purposes<br />
Certificate of notification processing, or<br />
certificate of passing inspection<br />
Customs declaration<br />
On May 29, 2006, the new positive list system was introduced and came into force. The system stipulates<br />
all food products, if detected agricultural pesticides, feed additives, animal veterinary drugs to remain in<br />
excess of certain quantity, importation and sales of such food products will be in principle prohibited. In this<br />
system, for the agricultural pesticides <strong>etc</strong>. recognized to use and remain in the product, the maximum residual<br />
level is fixed, and for other chemicals uniform standard of 0.01ppm residual level is applicable (quantity<br />
understood as hardly affect human health).<br />
All food products, including processed food products, are subject to the positive list system, and of course<br />
alcoholic beverages are also subject to the system. For more detail, refer to the Ministry of Health, Labor,<br />
and Welfare website. (⇒http://www.mhlw.go.jp/english/topics/foodsafety/positivelist060228/index.html)<br />
It is required for the importers to gather abundant and enough information on the projected import foods to<br />
study whether the products meets the requirement of the Food Sanitation Law in their specifications and<br />
standards by obtaining, in advance, ingredients lists and production process charts or by making consultation<br />
with the quarantine office.<br />
Prior to importing, the importer may take a sample of forthcoming imports to laboratories registered with<br />
the Ministry of Health, Labor and Welfare or the competent governmental agencies of the exporting countries.<br />
Those test results may be substituted for the corresponding inspection at the port of entry, which expedites the<br />
quarantine process.<br />
In addition, importers who wish to submit their notification by computer may make use of the computerized<br />
FAINS (Food Automated Import Notification and Inspection Network System) for processing import-related
C-2. <strong>Alcoholic</strong> <strong>Beverages</strong> (<strong>Beer</strong>, wine, whisky, <strong>etc</strong>.)<br />
documentation. Importers who have possessed hardware and software may apply for a security code from the<br />
Minister of Health, Labor and Welfare to access the system.<br />
2) Liquor Tax Law<br />
The Liquor Tax Law requires a business license from the competent tax office in order to manufacture or<br />
sell liquors. Any person or entity may import liquors without restriction, but without a liquor vendor’s license,<br />
it is not permitted to ship imported liquors out of the bonded area. Therefore, it is essential to first obtain a<br />
liquor vendor’s license to sell imported liquors.<br />
In addition to customs duties, liquor taxes are collected when the liquors are shipped from the bonded area.<br />
In <strong>Japan</strong>, the Liquor Tax Law subjects all forms of beverages with an alcohol content of 1% or higher to<br />
taxation. <strong>Beer</strong>, wine and other beverages containing less than 1% alcohol are not classified as alcoholic<br />
beverages under the Liquor Tax Law. These products are sold as soft drinks instead, thus they are not subject<br />
to the Liquor Tax Law. In addition, please be aware that the Liquor Tax Law limits additives can be used as<br />
preservative mixtures by type of liquor.<br />
(2) Regulations and Procedural Requirements at the Time of Sale<br />
The domestic sale of liquor is subject to the Liquor Tax Law, the Liquor Business Association Law, the Food<br />
Sanitation Law, the Measurement Law, the Act Against Unjustifiable Premiums and Misleading<br />
Representations. Products that infringe intellectual property rights are regulated by the various intellectual<br />
property laws (Trademark Law, Patent Law, Unfair Competition Prevention Law, <strong>etc</strong>.). Prospective exporters to<br />
<strong>Japan</strong> must be aware of these considerations, as rights holders may initiate legal action.<br />
Containers and packaging may also be subject to identifier labeling provisions of the Law for Promotion of<br />
Effective Utilization of Resources, and recycling provisions of the Containers and Packaging Recycling Law.<br />
Please contact one of the agencies listed below for more complete information.(see (6)Regulatory Agent<br />
Contact)<br />
1) Liquor Tax Law<br />
All those engaged in the business of selling liquors must obtain a license for each sales location from the tax<br />
office with jurisdiction over the sales location. Applicants must conform to personal and location<br />
qualifications, <strong>etc</strong>. No license is required for restaurants that serve the liquor at their own restaurants and do<br />
not sell to other restaurants or to customers. The 3-Year Deregulation Plan (1999) relaxed qualifications for<br />
obtaining a general liquor retailer’s license (see below). Beginning September 1, 2003, limitations were<br />
abolished on grants of general liquor retailer’s licenses by retail sales area (annual license limits).<br />
Note: An emergency measure was issued in July 2003, regulating that, in a district where there is a noticeably high<br />
percentage of alcohol retailers with management difficulties, the director of the taxation office of a district shall<br />
not to grant authorization for the issue / transfer of a new license for certain period. 1,274 districts (37.7% of<br />
entire district) were designated as “emergency regulating districts" in the 2004 licensing year (September 1,<br />
2004 - August 31, 2005), regulating that in these districts where there is a noticeably high percentage of alcohol<br />
retailers with management difficulties, the director of the taxation office shall not to grant authorization for the<br />
issue / transfer of a new license for certain period. This measure was cancelled after the available period was<br />
postponed to August 31, 2006.<br />
There are several kinds of licenses for the sale of alcohol, depending on the category of business (wholesale<br />
business, retail business), and product line (full range, only imported products, <strong>etc</strong>.). The licenses required to<br />
handle imported alcohol are listed below.<br />
<br />
License for Wholesale of Alcohol<br />
a) General liquor wholesaler’s license<br />
Holders of this license are authorized to sell all liquors, regardless of domestic or imported, as a<br />
wholesaler to liquor retailers, but not to consumers or restaurants as a retailer.<br />
b) Western-style liquor wholesaler’s license<br />
Holders of this license are authorized to sell western-style liquors (wine, whisky, spirits, liqueur,<br />
and miscellaneous spirits only), as a wholesaler to liquor retailers, but not to consumers or<br />
restaurants as a retailer. The holders also are not authorized to wholesale beer.<br />
c) <strong>Beer</strong> wholesaler’s license<br />
Holders of this license are authorized to wholesale beer only, but not to consumers or restaurants<br />
as a retailer.<br />
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201
C-2. <strong>Alcoholic</strong> <strong>Beverages</strong> (<strong>Beer</strong>, wine, whisky, <strong>etc</strong>.)<br />
d) Imported liquor wholesaler’s license<br />
Holders of this license are authorized to sell all imported liquors, as a wholesaler to liquor<br />
retailers, but not to consumers or restaurants as a retailer. The holders also are not authorized to<br />
wholesale liquors made in <strong>Japan</strong>.<br />
License for Retail Sale of Alcohol<br />
e) General liquor retailer’s license<br />
Holders of this license are authorized to sell all liquors to consumers or restaurants as a retailer<br />
within the sales territory. The holders also are authorized to import liquors directly and retail<br />
them. In order to exhibit imported liquor at a trade fair, holders must apply to the local tax office<br />
with jurisdiction over the trade fair venue for temporary permission to sell at a location other<br />
than the license holder’s regular sales location.<br />
f) Mail order liquor vendor’s license<br />
Holders of this license are authorized to sell specific liquors by mail order to consumers or<br />
restaurants.<br />
2) Liquor Business Association Law<br />
(Law Concerning Liquor Business Association and Measures for Securing Revenue from Liquor Tax)<br />
When alcoholic beverages are sold, it must be labeled in accordance with provisions of the Liquor Business<br />
Association Law. (see (3)Labeling)<br />
“Liquor sales manager system” was established. The purpose of the program is to assure appropriate retail<br />
control over alcoholic beverages, including proper container recycling, and prevent underage drinking. Under<br />
this program, liquor retailers must appoint liquor sales manager for each sales location no later than the date<br />
upon which alcoholic beverage sales commences. Within two weeks of appointment, the retailer must submit<br />
the “Sales Manager Appointment Notification” form to the competent tax office. For more complete<br />
information, please consult with the competent tax office with jurisdiction over the sales location.<br />
3) Food Sanitation Law<br />
The Food Sanitation Law prohibits the sale of foods containing toxic or harmful substances and foods that<br />
are unsafe for human health. When alcoholic beverages are sold, it must be labeled in accordance with<br />
provisions of the Food Sanitation Law. (see (3) Labeling)<br />
4) Measurement Law<br />
<strong>Alcoholic</strong> beverages sealed in wrapping or containers are required to indicate the net content to certain<br />
accuracy. (see (3) Labeling)<br />
5) Act Against Unjustifiable Premiums and Misleading Representations<br />
The Act prohibits a form of improper labeling exaggerated or false labeling that mislead consumers about<br />
the nature or quality of products, The Fair Trade Commission, when necessary to judge the labeling is lawful<br />
or false, can request the enterprisers concerned to present the data for reasoning of the labeling contents. If<br />
they fail to present the requested data, the Fair Trade Commission will regard the case unlawful. Also vague<br />
or confusing labeling that makes it difficult to discern the actual country of origins is also prohibited as a<br />
form of improper labeling. The country of origin is defined as “a country in which a treatment of process<br />
effecting substantial change to the substance of the goods made.”<br />
<br />
<br />
The industry has voluntarily adopted these guidelines in order to assure consumer product choice<br />
availability and preserve fair competition, based on the Act Against Unjustifiable Premiums and Misleading<br />
Representations. It consists of labeling guidelines and premiums guidelines (Fair Competition Code<br />
concerning Restrictions on Premiums, <strong>etc</strong>. in the Importation and Sale of Liquors). (see (3) Labeling)<br />
6)Law for Promotion of Effective Utilization of Resources<br />
Among wrappings and containers of alcohol products, identifier labeling is required for steel and aluminum<br />
cans, PET bottles, paper (cardboard boxes and paper containers not containing aluminum and cardboard<br />
containers) and plastic container materials (see (3) labeling).<br />
7)Containers and Packaging Recycling Law<br />
(Law for Promotion of Sorted Collection and Recycling of Containers and Packaging)<br />
The Law was enacted to promote recycling of containers and packaging waste materials. It provides for<br />
sorting by consumers, sorted collection by municipalities, and product reuse (recycling) by product makers<br />
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C-2. <strong>Alcoholic</strong> <strong>Beverages</strong> (<strong>Beer</strong>, wine, whisky, <strong>etc</strong>.)<br />
and distributors for glass bottles, PET bottles, paper and plastic containers and packaging. Consequently,<br />
alcohol product importers and vendors incur the obligation for recycling of containers and packaging. The<br />
small-scale importers are exempt from the recycling duty, however, the containers and packaging must carry<br />
the identifier labels. (see (3) labeling)<br />
(3) Labeling Regulations at the Time of Sale in <strong>Japan</strong><br />
1) Legally Required Labeling<br />
[1] Liquor Business Association Law , Food Sanitation Law, Measurement Law<br />
The Liquor Business Association Law, the Food Sanitation Law, and the Measurement Law specify the<br />
following label items for alcoholic beverages. Liquors made from genetically modified agricultural products<br />
are required by the Liquor Business Association Law to display labeling compliant with provision of the<br />
Product Quality Labeling Standards for Genetically Modified Foods under the JAS Law. In the case of<br />
imported alcoholic beverages, the labeling obligation falls upon the importers and vendors.<br />
① Category of liquor (the phrases “fruit wine,” “sweetened fruit wine,” “beer,” or “whisky”)<br />
② List of food additives used (anti-oxidants or synthetic preservatives, <strong>etc</strong>.)<br />
③ Alcohol content<br />
④ Content volume (expressed in milliliters or liters)<br />
⑤ Whether or not effervescent, and applicable classification for rate of duty<br />
⑥ Importer’s name and address<br />
⑦ Distributor (rebottling plant) address<br />
(In case of imports, address of distributor or rebottling plant receiving wine from bonded area. May be<br />
omitted if it is the same as importer address.)<br />
⑧ Labeling to prevent consumption by minors<br />
(All liquor containers must clearly state that “consumption of liquors by minors is prohibited” or<br />
“liquors may only be consumed by those age 20 and over,” <strong>etc</strong>.)<br />
Under the “Geographic Labeling that Conforms to the Standard”, products such as Bordeaux and Chablis<br />
whose product quality and reputation fundamentally arise from the geographic place of origin, it is not<br />
permitted for labels to use the place name unless the product actually comes from that place.<br />
[2]Law for Promotion of Effective Utilization of Resources<br />
The Law requires that all canned or PET-bottled beverages carry identifier mark affixed or printed on at<br />
least one spot on the side of the container. In addition, when paper (excluding cardboard box and paper pack<br />
not using aluminum) or plastic is used as packaging material for caps, labels, external packaging or elsewhere,<br />
material identifier label must be displayed with information where the material is used.<br />
Equilateral triangle<br />
with <strong>Japan</strong>ese characters<br />
for “aluminum”<br />
<br />
Circle with<br />
<strong>Japan</strong>ese characters for<br />
“steel”<br />
Equilateral triangle<br />
with “PET”<br />
<br />
Circle with<br />
<strong>Japan</strong>ese characters<br />
for “paper”<br />
Rectangular with<br />
<strong>Japan</strong>ese characters<br />
for “plastic”<br />
(2) Voluntary Labeling based on Provisions of Law<br />
<br />
Imported alcoholic beverages that display the <strong>Japan</strong>ese-language terms for “organic” on their labeling must<br />
conform to standards based on the Liquor Business Association Law.<br />
(3) Voluntary Industry Labeling<br />
[<strong>Wine</strong>]<br />
<strong>Wine</strong>s made from mixtures of domestic and imported wines must list the wines in order of preponderance in<br />
the mixture; for example “made from domestic wine and imported wine.” Industry standards also mandate<br />
that the label list in <strong>Japan</strong>ese, variety of grape, vintage, location of the vineyard, and any special winemaking<br />
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C-2. <strong>Alcoholic</strong> <strong>Beverages</strong> (<strong>Beer</strong>, wine, whisky, <strong>etc</strong>.)<br />
procedures employed, in as much as consumers may not understand such label information on the original<br />
winery label.<br />
[<strong>Beer</strong>]<br />
<br />
Under the Code, importers are required to display a list of ingredients, country of origin, method of<br />
preserving, caution of handling, <strong>etc</strong>. Importers must label the list of ingredients, except water, in the order of<br />
and under the names that stipulated by the Liquor Tax Law.<br />
Contact: <strong>Japan</strong> <strong>Wine</strong>s and Spirits Importers Association TEL: 03-3503-6505<br />
<br />
Use of any of the following terms on the product label signifies that the beer satisfies certain established<br />
criteria. These criteria must be met before the terms can be used, but their usage is optional. The label may<br />
contain any or all of these terms for which the product meets the defined criteria.<br />
① Lager beer: <strong>Beer</strong> aged during storage<br />
② Draft beer: Unpasteurized beer<br />
③ Black beer: Dark-colored beer made partly from dark-colored barley<br />
④ Stout beer: Dark-colored, strong-tasting beer made partly from dark-colored barley<br />
<br />
<strong>Beer</strong> makers that belong to the Brewers Association of <strong>Japan</strong> began voluntarily including in labeling a<br />
statement that drinking during pregnancy or while nursing may adversely impact the growth and development<br />
of the fetus or infant. This practice started with beer manufactured in June 2004. Consideration is being given<br />
to extending the practice to happoshu, chuhai and other liquors as well.<br />
[<strong>Whisky</strong>]<br />
<br />
Under the Code, importers are required to display a list of ingredients and country of origin.<br />
Contact: <strong>Japan</strong> <strong>Wine</strong>s and Spirits Importers Association TEL: 03-3503-6505<br />
(4) Key Considerations for entering the <strong>Japan</strong>ese Market<br />
Before entering the <strong>Japan</strong>ese liquor market, prospective importers must first make sure that all necessary<br />
business licenses for sale of liquors under the Liquor Tax Laws have been obtained. In the case of alcoholic<br />
beverages, coloring agents and preservatives are sometimes used as additives. Products containing additives<br />
that are not approved for use with food products under <strong>Japan</strong>ese standards, or in excess of permissible<br />
quantities may not be imported into <strong>Japan</strong>. When the alcoholic beverage is being imported into <strong>Japan</strong> for the<br />
first time, voluntary inspection performed in advance by official laboratories registered with the Minister of<br />
Health, Labor and Welfare in <strong>Japan</strong> or registered official laboratories in the exporting country may be essential.<br />
<strong>Alcoholic</strong> beverages must contain less than 1mg/cubic cm of methanol. Prospective importers should obtain<br />
samples and check thoroughly in advance to determine whether the product conforms to <strong>Japan</strong>ese standards.<br />
[<strong>Wine</strong>]<br />
Importing and selling wines require some knowledge of the characteristics of the product. In particular, the<br />
delicate flavor of wine requires that it be stored and transported under precisely controlled temperature<br />
conditions. Ships from Europe and Australia must pass through tropical regions where the temperature rises<br />
as high as 40 degrees Celsius. Because of this, many exporters ship wine in reefer containers that keep the<br />
wine at a set temperature. In addition, while in storage wine should be kept in a wine cellar or an equivalent<br />
facility where the temperature can be maintained at 15-20 degrees Celsius.<br />
[<strong>Beer</strong>]<br />
Prospective beer importers should also bear in mind the following points:<br />
• Study carefully the <strong>Japan</strong>ese taste preferences, then establish a distinctive identity and appeal that sets<br />
them apart from domestic beers. Unsold stocks will deteriorate, resulting in flat beer, broken bottles and<br />
crusted cans. Defective will have to be discarded, which is costly in it. Also, customs duties and liquor<br />
taxes are not refundable. For these reasons, prospective importers would be well advised to begin by<br />
importing and test marketing only a small quantity of beer in <strong>Japan</strong>.<br />
• Must have a thorough understanding of beer distribution and retailing practices in <strong>Japan</strong>.<br />
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C-2. <strong>Alcoholic</strong> <strong>Beverages</strong> (<strong>Beer</strong>, wine, whisky, <strong>etc</strong>.)<br />
[<strong>Whisky</strong>]<br />
It is essentially the same as beer, but in the case of whisky, product quality and brand management are more<br />
important than beer.<br />
(5)Considerations for Related Products<br />
① Other alcoholic beverages<br />
Other forms of imported alcoholic beverages include brandy, liqueur and other distilled sprits. Under the<br />
law these beverages are treated much the same as wine, beer and whisky. Please note that customs and tax<br />
authorities classify products differently according to different levels of alcohol content. Check with customs to<br />
determine the taxes and duties applicable to a particular product.<br />
② Non-alcoholic beverages<br />
<strong>Beverages</strong> containing less than 0.5% alcohol are classified as non-alcoholic beverages. Any foods and<br />
beverages are subject for the Food Sanitation Law, when they are imported for the purpose of sale or for other<br />
commercial purposes. <strong>Beverages</strong> with an alcohol content of 0.5-1.0% are classified as alcoholic beverages for<br />
the purpose of customs clearance, but are not classified as alcoholic beverages under the Liquor Tax Law.<br />
These products are sold as soft drinks.<br />
(6)Regulatory Agency Contact<br />
・Liquor Tax Law / Liquor Business Association Law<br />
Liquor Tax and Industry Division, Taxation Department, National Tax Agency<br />
TEL: 03-3581-4161 http://www.nta.go.jp<br />
・Food Sanitation Law<br />
Office of Imported Food Safety, Inspection and Safety Division, Department of Food Safety,<br />
Pharmaceutical and Food Safety Bureau, Ministry of Health, Labor and Welfare<br />
TEL: 03-5253-1111 FAX: 03-3503-7964 (Direct) http://www.mhlw.go.jp<br />
・Measurement Law<br />
Measurement and Intellectual Infrastructure Division, Industrial Science and Technology Policy and Environment Bureau,<br />
Ministry of Economy, Trade and Industry<br />
TEL: 03-3501-1511 http://www.meti.go.jp<br />
・Act Against Unjustifiable Premiums and Misleading Representations<br />
Consumer Related Trade Division, Trade Practices Department, Fair Trade Commission of <strong>Japan</strong><br />
TEL: 03-3581-5471 FAX: 03-3581-1754 (Direct) http://www.jftc.go.jp<br />
・Law for Promotion of Effective Utilization of Resources / Containers and Packaging Recycling Law<br />
Recycling Promotion Division, Industrial Science and Technology Policy and Environment Bureau,<br />
Ministry of Economy, Trade and Industry<br />
TEL: 03-3501-1511 http://www.meti.go.jp<br />
Office of Recycling Promotion, Policy Planning Division, Waste Management and Recycling Department,<br />
Ministry of the Environment<br />
TEL: 03-3581-3351 FAX: 03-3593-8262 (Direct) http://www.env.go.jp<br />
Food Industry Environment Policy Office, Food Industry Policy Division, General Food Policy Bureau,<br />
Ministry of Agriculture, Forestry and Fisheries<br />
TEL: 03-3502-8111 FAX: 03-3508-2417 (Direct) http://www.maff.go.jp<br />
4. Tariff Duties and Consumption Tax in <strong>Japan</strong><br />
(1) Tariff Duties<br />
Figure.14 presents tariff duties on alcohol beverages. In case of confirming the tariff classification or<br />
applicable tariff rate in advance, it is convenient to use the “advance counseling program”. By making<br />
inquiry to the customs orally, or through documents or e-mail, the customs will reply to such inquiry.<br />
Contact: Customs website http://www.customs.go.jp/index_e.htm<br />
[Preferential Tariff System]<br />
In order to apply for preferential tariff rates on alcohol beverages imported from preferential treatment<br />
countries, the importer should submit a certificate of preferential country of origin (Form A) issued by the<br />
customs or other issuing agency in the exporting country (not required if the total taxable value of shipment is<br />
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205
C-2. <strong>Alcoholic</strong> <strong>Beverages</strong> (<strong>Beer</strong>, wine, whisky, <strong>etc</strong>.)<br />
no greater than ¥200,000.-). For some type of alcoholic beverages, it is not required to present a certificate of<br />
preferential country of origin. For more details, please contact the Customs and Tariff Bureau, Ministry of<br />
Finance.<br />
[EPA (Economic Partner Agreement)]<br />
Between <strong>Japan</strong> and <strong>ASEAN</strong> countries, EPA (Economic Partnership Agreement) negotiation is being<br />
promoted. In the areas of Agriculture, Forestry and Fisheries, also, abolition and reduction of tariff rates are<br />
being reached for consent. By <strong>Japan</strong>-Singapore EPA for New Era (effective on Nov. 30, 2002) and<br />
<strong>Japan</strong>-Malaysia EPA (effective on July 13, 2006), the EPA tariff rates are applicable for the import of certain<br />
consented items of Singapore and Malaysian origin.<br />
Application of tariff rates on <strong>ASEAN</strong> countries are as follows :<br />
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206<br />
Applicable Rates <strong>ASEAN</strong> Countries<br />
LDC Preferential Rate Myanmar, Cambodia, Laos<br />
Preferential Rate Thailand, Indonesia, Philippines, Vietnam<br />
<strong>Japan</strong>-Singapore EPA Rates Singapore (note)<br />
<strong>Japan</strong>-Malaysia EPA Rates Malaysia (note)<br />
WTO Rate Brunei<br />
Note: In case the imported item is not included in the consented items list, WTO tariff rates will apply to the import<br />
of Singapore origin and Preferential rates is valid for the import of Malaysian origin.<br />
(2) Consumption Tax<br />
(CIF + Tariff duty) x 5%<br />
5. Related Organizations<br />
・Nippon <strong>Wine</strong> Importers Association TEL: 03-5630-1012<br />
・<strong>Japan</strong> <strong>Wine</strong>s and Spirits Importers Association<br />
TEL: 03-3503-6505 FAX:03-3503-6504 http://www.youshu-yunyu.org/<br />
・Brewers Association of <strong>Japan</strong><br />
TEL: 03-3561-8386 FAX: 03-3561-8380 http://www.brewers.or.jp
Fig. 14 Tariff duties on alcoholic beverages<br />
C-2. <strong>Alcoholic</strong> <strong>Beverages</strong> (<strong>Beer</strong>, wine, whisky, <strong>etc</strong>.)<br />
HS No. Description<br />
General WTO<br />
Rate of Duty<br />
Preferential Temporary JSEPA JMEPA<br />
2204.10-000 Sparkling wine ¥201.60/liter ¥182/liter ¥145.60/liter<br />
*Free<br />
21-010 Sherry, port and other fortified<br />
wines<br />
(In containers holding 2 liter<br />
or less)<br />
¥123.20/liter ¥112/liter<br />
-020 Other wine<br />
21.3% or 15% or<br />
(In containers holding 2 liter<br />
or less)<br />
¥156.80/liter, ¥125/liter,<br />
whichever is the whichever is the<br />
less, subject to a less, subject to a<br />
minimum minimum<br />
customs duty of customs duty of<br />
¥93/liter ¥67/liter<br />
29-010 Other wine<br />
(In containers holding 150<br />
liter or less)<br />
Ditto Ditto<br />
-090 (Other) ¥64/liter ¥45/liter ¥24/liter<br />
*Free<br />
2205 Vermouth and other wine of<br />
fresh grapes flavored with<br />
plants or aromatic substances<br />
10-000 In containers holding 2 liter or ¥70.60/liter ¥69.30/liter ¥50.40/liter<br />
less<br />
*Free<br />
2205.90 In containers holding more<br />
than 2 liter<br />
-200 Of an alcoholic strength by ¥70.60/liter ¥69.30/liter ¥50.40/liter<br />
volume of more than 1 % vol<br />
*Free<br />
2203.00-000 <strong>Beer</strong> made from malt ¥6.40/liter Free Free Free Free<br />
2206.00-225 Sparkling beverages made, in<br />
part, from malt<br />
(¥6.40/liter) (¥42.40/liter) Free Free Free Free<br />
2208.30 Whiskies<br />
(1) Bourbon whisky (13.7%) Free Free<br />
-011 (a) Of a alcoholic strength by<br />
volume of 50% vol or higher<br />
-019 (b) Other Bourbon, in<br />
containers holding less than 2<br />
litter container<br />
Free Free<br />
(2) Rye whisky (15.7%) Free Free<br />
-021 (a) Of a alcoholic strength by<br />
volume of 50% vol or higher<br />
Free Free<br />
-029 (b) Other Rye, in containers<br />
holding less than 2 liter<br />
container<br />
Free Free<br />
(3) Other whisky Free Free<br />
-031 (a) Of a alcoholic strength by<br />
volume of 50% vol or higher<br />
(¥207.20/liter) Free Free Free Free<br />
-032 (b) Others, in containers<br />
holding less than 2 liter<br />
container<br />
(¥172.50/liter) Free Free Free Free<br />
2206.00-210 Sake (Seishu and Dakushu) ¥70.40/liter (¥70.40/ liter) Free<br />
-221 Mixtures of fermented<br />
beverages<br />
¥30.80/liter ¥27/liter<br />
-229 Other fermented beverages ¥43.10/liter ¥42.40/liter ¥30.80/liter<br />
(for example, cider, perry,<br />
mead)<br />
*Free<br />
2208.40-000 Rum and tafia (20.2%) (18%) Free Free Free<br />
2208.50-000 Gin and Geneva (19% (17.5% or<br />
Free Free Free<br />
or¥86.20/liter, ¥77/liter,<br />
whichever is the whichever is the<br />
less) less)<br />
2208.60-000 Vodka (17.9%) (16%) Free Free Free Free<br />
2208.70-000 Liqueurs and cordials (¥141.10/ liter) (¥126/ liter) Free Free Free<br />
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C-2. <strong>Alcoholic</strong> <strong>Beverages</strong> (<strong>Beer</strong>, wine, whisky, <strong>etc</strong>.)<br />
HS No. Description<br />
General WTO<br />
Rate of Duty<br />
Preferential Temporary JSEPA JMEPA<br />
2208.20 Brandy<br />
-100 (1)(In containers holding more<br />
than 2 liter) Of a alcoholic<br />
strength by volume of 50% vol<br />
or higher<br />
(¥193.20/ liter) Free Free Free Free<br />
-200 (2) Others (¥227.90/ liter) Free Free Free Free<br />
2208.90 (1) Fruit brandy<br />
-111 a) (In containers holding<br />
more than 2 liter) Of a alcoholic<br />
strength by volume of 50% vol<br />
or higher<br />
(¥193.20/ liter) Free Free Free Free<br />
-119 b) Others Fruit brandy (¥227.90/ liter) Free Free Free Free<br />
-129 Distilled alcoholic beverages 17.9% ¥25.20/ liter<br />
-220 Imitation sake and white sake ¥70.40/ liter (¥70.40/ liter) Free Free<br />
-230 <strong>Beverages</strong> with a basis of fruit 35%or¥27/kg, 29.8%or¥23/kg,<br />
27.9% (a<br />
juices<br />
whichever is the whichever is the<br />
specific<br />
greater greater<br />
duty rate of<br />
\21.56/kg<br />
is applied<br />
when the<br />
percentag<br />
e is the<br />
less)<br />
-240 Others ¥89.60/ liter ¥88/ liter Free Free<br />
Note 1: “*Free” in Preferential Rate is applicable only for the Least Developed Countries.<br />
Note 2: Normally the order of precedence for application of tariff rates is Preferential, WTO, Temporary, and General, in that order.<br />
However, Preferential rates are only eligible when conditions stipulated by law or regulation are met. Also, WTO rates apply when<br />
those rates are lower than Temporary or General rates.<br />
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