Japan liquor businesses turn to non-alcoholic drinks to attract Gen Z

By Irene Wang and Tom Bateman

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

“If I’ve to stand up early, and I believe ‘Oh, I ought to maintain off on ingesting,’ then I’m going for a non-alcohol drink to get a way of alcohol once I’m ingesting alone,” Okamoto, 22, stated at a Tokyo restaurant. “And naturally, when hanging out with pals who do not drink, it is good to have one thing 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 acutely aware. The worldwide market worth for the section rose to simply below $10 billion in 2021 from $7.8 billion in 2018, in response to researcher IWSR.

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

Dealing with a gentle decline in income from alcohol gross sales, Japan’s tax workplace in July launched a contest in search of concepts on stimulate demand amongst youthful folks.

Japan’s main drinks makers are additionally wanting outdoors the nation for development. 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 current afternoon within the leisure district of Roppongi, teams of principally younger girls gathered at a no-alcohol “beer backyard” arrange within the shadow of considered one of Tokyo’s tallest buildings.

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 an alternative.

“Shoppers are usually not having fun with simply alcoholic drinks. We expect they worth extra of the communication that is generated when ingesting or want to benefit from the ambiance of the place the place they drink,” stated Suntory common supervisor Masako Koura.

Competitor Kirin Holdings Co additionally gives non-alcoholic wines, cocktails and beer. The corporate 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%.

In Shibuya, the newly opened Sumadori Bar – a play on the Japanese phrases for “good ingesting” – gives elaborate, sugary cocktails that may be made with no alcohol or as much as 3%. It gives an setting the place everybody can take pleasure in 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 purpose of this bar is to worth clients who can not drink in order that they’ll fortunately come right here with individuals who do drink,” Kajiura stated. “If different eating places and bars can perceive our purpose, I believe they’d get extra clients.”

(Reporting by Irene Wang, Tom Bateman, Akiko Okamoto, and Rocky Swift. Enhancing by Gerry Doyle)