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HomeBusinessJapan liquor companies flip to non-alcoholic drinks to draw Gen Z

Japan liquor companies flip to non-alcoholic drinks to draw Gen Z

Bucking the age-old stereotype of hard-drinking faculty college students, Manaka Okamoto considers the following day’s schedule earlier than cracking open an alcoholic beverage.

“If I have to get up early, and I think ‘Oh, I should hold off on drinking,’ then I go for a non-alcohol drink to get a sense of alcohol when I’m drinking alone,” Okamoto, 22, stated at a Tokyo restaurant. “And of course, when hanging out with friends who don’t drink, it’s nice to have something to toast with.” 

The recognition of low- and non-alcoholic drinks has risen worldwide, accelerated by the pandemic, which led many individuals to be extra well being aware. The international market worth for the section rose to simply below $10 billion in 2021 from $7.8 billion in 2018, based on researcher IWSR.

The impact has been particularly pronounced in Japan, the place the inhabitants is shrinking and youthful individuals drink far lower than in earlier a long time. Just 7.8% of Japanese individuals of their 20s have been common drinkers in 2019 in contrast with 20.3% of that age group in 1999, based on authorities surveys.

Facing a gentle decline in income from alcohol gross sales, Japan’s tax workplace in July launched a contest searching for concepts on the right way to stimulate demand amongst youthful individuals.

Japan’s main drinks makers are additionally trying exterior the nation for progress. The chief of home beer chief Asahi Group Holdings instructed Reuters final month he noticed North America as a key market. Suntory Holdings Group is trying to develop its canned cocktail enterprise there.

At house, the businesses are arising with new methods to enhance the bar expertise for non-drinkers.

On a latest afternoon within the leisure district of Roppongi, teams of principally younger girls gathered at a no-alcohol “beer garden” arrange within the shadow of considered one of Tokyo’s tallest buildings.

Suntory’s non-alcoholic drinks are pictured throughout a photograph alternative at a non-alcohol “beer garden” in Tokyo. Photo: REUTERS/Kim Kyung-Hoon

Beer gardens are a summer season custom in Japan, however this one – promoted by Suntory and broadcaster TV Asahi – skipped the beer, providing patrons a lineup of mocktails and non-alcohol wine as a substitute.

“Consumers are not enjoying just alcoholic beverages. We think they value more of the communication that’s generated when drinking or would like to enjoy the atmosphere of the place where they drink,” stated Suntory common supervisor Masako Koura.

Competitor Kirin Holdings Co additionally provides non-alcoholic wines, cocktails and beer. The firm stated gross sales of its booze-free beer have been up greater than two-fold within the three months by June in contrast with a 12 months in the past.

Sapporo Holdings Ltd stated home gross sales of low-alcohol and non-alcoholic beer rose 20% within the half 12 months by June, whereas canned beer gross sales slid 4%.

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An worker makes a cocktail with no alcohol at Sumadori Bar in Tokyo. Photo: REUTERS/Kim Kyung-Hoon

In Shibuya, the newly opened Sumadori Bar – a play on the Japanese phrases for “smart drinking” – provides elaborate, sugary cocktails that may be made with no alcohol or as much as 3%. It provides an setting the place everybody can get pleasure from a drink collectively, stated Mizuho Kajiura, chief government of the Asahi-led enterprise.

Kajiura labored for 2 years in Indonesia and stated his expertise within the principally Muslim nation gave him an appreciation for creating hospitable environments for non-drinkers.

“The aim of this bar is to value customers who cannot drink so that they can happily come here with people who do drink,” Kajiura stated. “If other restaurants and bars can understand our aim, I think they would get more customers.”

© Thomson Reuters 2022

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