Japanese liquor companies look to non-alcoholic beverages to attract Gen Z

TOKYO, Sept 12 (Reuters) – Breaking the old stereotype of the heavy drinking college student, Manaka Okamoto thinks about the next day before cracking open an alcoholic beverage.

“When I have to get up early, I think, ‘Oh, maybe I should refrain from drinking,’ and I’m going alone to get a feel for alcohol,” Okamoto, 22, said at a restaurant in Tokyo. “And of course, when you’re with friends who don’t drink, it’s nice to have something to toast with.”

The popularity of low-alcohol and non-alcoholic beverages is growing around the world, accelerated by the pandemic and making many people more health conscious.The global market value of this segment, according to researcher IWSR rose from $7.8 billion in 2018 to just under $10 billion in 2021.

This effect is particularly pronounced in Japan, where the elderly population, who tend to drink more, is rapidly declining. It was just 7.8% in 2019 compared to 20.3%.

Japan’s tax office, which faces a steady decline in income from liquor sales, launched a contest in July for ideas on how to stimulate demand among young people.

Major Japanese beverage makers are also looking abroad for growth. The chief of domestic beer giant Asahi Group Holdings told Reuters last month that he sees North America as an important market. The Suntory Holdings Group aims to expand its canned cocktail business.read more

At home, companies are coming up with new ways to improve the bar experience for non-drinkers.

On a recent afternoon in downtown Roppongi, a group of mostly young women gathered at a non-alcoholic ‘beer garden’ set in the shadow of one of Tokyo’s tallest buildings.

Beer gardens are a summer tradition in Japan, but this beer garden, advertised by Suntory and broadcaster TV Asahi, skipped the beer and instead offered a lineup of mocktails and non-alcoholic wines to patrons.

Masako Koura, general manager of Suntory, said, “Customers don’t just enjoy drinking, but they want to enjoy the communication that comes from drinking and the atmosphere of the place where they drink.” talk to.

Competitor Kirin Holdings also offers non-alcoholic wine, cocktails and beer. Sales of non-alcoholic beer more than doubled in the three months through June compared to a year ago, according to the company.

The newly opened Sumadori Bar in Shibuya, which means “smart drink” in Japanese, serves up elaborate, sweet cocktails that can be made non-alcoholic or with up to 3% alcohol. Mizuho Kajiura, CEO of the joint venture led by Asahi, said the company provides an environment where everyone can enjoy a drink together.

Kajiura said she worked in Indonesia for two years and said her experience in a mostly Muslim country made her appreciate creating a welcoming environment for non-drinkers.

Mr. Kajiura said, “We value people who can’t drink alcohol, and we want to make this a place where people who drink alcohol can feel free to come.” “If other restaurants and bars understand what we are aiming for, I think we will get more customers.”

Reporting by Eileen Wang, Tom Bateman, Akiko Okamoto and Rocky Swift.Editing by Jerry Doyle

Our standards: Thomson Reuters Trust Principles.