Whither Japanese beer?

Need another reason to abandon artificial contraception (besides the whole mortal-sin-that-will-get-you-sent-straight-to-Hell thingee)? A lack of kids will end beer as we know it!

The Press-Enterprise: Temporary Toast
Resurgence in popularity likely to be short-lived as nation gets old
By HANS GREIMEL of The Associated Press

TOKYO - The flaming barbecue grills aren't alone in whipping up a thirst for cold brew at Shiodome Garden, a rooftop beer restaurant surrounded by flashing neon billboards. Also whetting the appetite is Japan's rekindled economy.

"I love beer," declared Akihiro Seki, a 39-year-old insurance accountant, downing his fifth icy glass in the muggy open air. "We know the economy's getting better so we feel more confident spending a little extra."

Japanese beer shipments are on the rise for the first time in a decade, as the world's second-largest economy toasts a brisk recovery from years of doldrums. But the future of Japan's $24.8 billion beer industry is anything but bubbly.

Changing tastes, healthier lifestyles and Japan's shrinking population are all looming buzz kills for an industry that has already undergone painful restructuring during a recently ended decade of economic stagnation.

Struggling to keep the profits coming, Japan's big brewers -- Kirin, Asahi, Sapporo and Suntory -- are trying everything from diversifying into baby food to expanding into China and introducing soybean beer.

So far, they've had mixed results.

"Until now, the beer market has been shrinking because people wanted cheaper drinks," said Shuji Takimoto, spokesman for the Brewers Association of Japan. "But just judging by the changing population, the future of beer also looks tough."

The good news is that in the first half of 2006, domestic shipments of beer rose 0.3 percent, the first increase in a decade, as rising wages and consumer optimism encouraged people to dine out. Shipments of all beer products, climbed 1.1 percent to 230.66 million cases, its first increase in five years.

The Japanese weren't even brewing their own beer until 1872. But by 2004, Japan was the world's sixth-biggest consumer, guzzling 1.7 billion gallons a year. On a per-capita basis, the country is Asia's No. 1, with each Japanese quaffing an annual average of 13.5 gallons -- or one 12 ounce can every 2 ½ days.

But that grand drinking tradition is under attack from several corners.

To bolster sales during the economic slump when drinkers watched their wallets, Japanese beermakers introduced new products to dodge the so-called "taste tax" that accounts for almost half the price of a can of regular Japanese beer. For example, a 12-ounce can of Asahi Super Dry costs around $1.80, 66 cents of that goes to the government.

The tax applies only to beers containing more than 67 percent malt. So the Japanese rivals raced to roll out low-malt drinks, which substitute rice or corn syrup for malt.

Raise a Kirin, kiddies, before it is too late.