Deregulation movement in Japan has led the Japanese government
to revise its Liquor Tax Act, lowering the required minimum annual
production volume for issuance of a beer production license from
2000kl to 60kl. In response to this deregulation, two local breweries
of Nigata and Hokkaido obtained license to produce beer in December
9, 1994, which became an epoch-making start of Japan’s local beer
brewing history. At the same time, license to produce ‘sparkling
liquor’ was issued to those local breweries producing local beer
classified as ‘sparkling liquor’ according to Japan’s Liquor Tax
Act. The reason why some of these local beer brands were classified
as ‘sparkling liquor’ and not ‘beer’ was not because they were
low in quality, but simply because they were using ingredients
that did not fall under the definition ‘beer’ in Japan’s Liquor
Tax Act. In fact, these local breweries are using ingredients
that are making full use of each brewery’s local distinctive feature
and/or brewery’s well-thought-out original recipe, making their
beer taste very original. After this deregulation, local beer
breweries producing both ‘beer’ and ‘sparkling liquor’ appeared
one after another.
Now, only after four years from the deregulation, there are more
than 240 local beer breweries all over the nation competing with
each other in making their own unique local beer. As a consequence,
Japanese consumers are now able to drink unusual handmade beer
anywhere in the country. Even the local beer breweries having
the biggest ambitions towards their future beer business must
have not thought that the effect of the deregulation would be
this immediate and noticeable.
Effect of deregulation was also significant in a sense that the
base of new local beer breweries stemmed out not only from the
existing liquor industry, but from variety of other industries
as well. Till then, Ministry of Finance controlled Japanese liquor
industry was a rather suffocating world. The deregulation opened
up a way for many venture minded parties outside the industry
to participate in the market, which resultingly injected fresh
vital energy to the old traditional world of Japanese liquor industry.
After experiencing continual series of trial and error at the
start of the business, Japanese local beer breweries today is
again taking to their heart the importance of offering a stable
quality product which makes the best use of each brewery’s distinctive
feature. We believe this is the only way we are able to achieve
consumer’s long lasting support.
Though we are using expensive ingredients than major beer producers,
the rate of tax which will ultimately be handed over to consumers
does not differ. Moreover, we must offer many types of beer with
small scale production. To overcome these disadvantages and to
continue offering beer which consumers will find fond of drinking
for a long period of time, as well as to make us local beer houses
flourish and evolve, we think it is strictly important to stop
emphasizing mere rarity or novelty as a sales point, but in turn,
try to make consumers recognize the real value of our beer which
is far more valuable than currently acknowledged.
Thinking of our future direction as above, and comparing it with
our current situation, following demands and thoughts come and
go through our mind.
1) We would like to master brewing and quality management technologies
for producing good quality beer and secure rational distribution
system.
2) Current liquor tax rate is imposing a severe burden on local
beer houses. Is there any way to lighten this burden?
3) Ingredients such as malts are expensive. Knowing a way to lighten
these material cost would be a great help.
4) We would like to master a effective way to operate and manage
mini-brewery house and restaurant with high operation rate attached
to it.
5) One rotten apple injures its neighbor. If there is any low
quality local beer in the market, it may lead to disfavor of all
local beer brands. If we are able to establish an official evaluation
system for all local beer brands in the nation and point out matters
that should be improved, it will raise the standard of Japan’s
local beer quality as a whole.
Many local beer breweries all over the nation are assumed to have
these kind of demands and thoughts. Therefore, for coexistence
and co-prosperity of local beer breweries which together have
grown to the scale of an independent industry, we think the time
has come for an establishment of a nation wide scale organization
that takes part in providing and sharing related information,
as well as enriching training courses to improve breweries’ skill
and operation stability.
These are the reason why we drew up this prospectus to propose
the establishment of Japan Brewers Association towards all our
fellow traders in the nation.
Concrete objectives and activities of Japan Brewers Association,
together with regulations of the association, will be discussed
in the future with the support and approval of members. The basic
policy is to establish an organization consisting of interested
brewers, of which nation’s local beer brewers with basically the
same ambitions can gather around to make contribution towards
stabilization of local beer brewing operation.
We are setting a following picture in our minds about the overall
structure of the association. If there is any existing local brewers
association in the jurisdiction district of any Regional Taxation
Bureau or prefectures, we will cooperate with these existing associations.
In either case, we will closely keep in touch and work together
with the competent authorities, Regional Taxation Bureau and National
Tax Administration Agency, to make sure our steady operation lasts
for a long period of time.
We hope to obtain as many support as possible to our proposal
of establishing this association and asking you to indicate your
positive intention towards participation.
Japan Brewers Association Proposition Members
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