Declining Demand for Alcoholic Beverages Due to Growing Health Consciousness and Younger People Moving Away from Drinking

「At the Alco Unit, sales of craft whisky and craft gin performed well, while sales of premium-priced products, particularly domestic whisky that had performed well in the same interim period of the previous year, struggled.」

「In addition to the contraction of the night market, sales of premium whisky and high-priced wine struggled as consumers became more focused on protecting their household finances amid price increases for a wide range of goods. However, sales expanded as the company broadened sales channels targeting growing inbound consumption and focused on developing new business partners.」

「In addition to the contraction of the night market, sales of premium whisky and high-priced wine struggled as consumers became more focused on protecting their household finances amid price increases for a wide range of goods. However, sales expanded as the company broadened sales channels targeting growing inbound consumption and focused on developing new business partners.」

「At the Alco Unit, profit declined partly because of the impact of closing sales at the Our Liquor Okihama and Our Liquor Aizumi stores. Meanwhile, sales of premium-priced whisky and luxury brandy performed well at individual stores and on the e-commerce site.」

「At the Alco Unit, sales at each whisky specialty store performed well, partly due to inbound demand resulting from the sharp depreciation of the yen, while sales of premium champagne, which had performed well in the same quarter of the previous year, struggled.」

「At the Alco Unit, sales of champagne, which had performed well in the same quarter of the previous year, struggled. Meanwhile, sales of whisky ranging from everyday-drinking products to highly rare, high-priced whisky, as well as brandy, performed well.」

「In the Arco Unit, sales of sake and shochu, for which domestic shipments have been declining year by year, decreased. However, sales of high-priced whisky, champagne and other products remained strong at each store, including the e-commerce site.」

「At the Alco Unit, sales of sake and other products, whose domestic shipment value was trending downward, declined. However, sales performed well for premium champagne on the e-commerce site, domestic whisky sold regularly at events, and cask-strength whisky sold by measure.」

「In particular, consumption of champagne, which has strong luxury appeal, showed no recovery and sales remained weak. Meanwhile, as prices of a wide range of products continued to rise, ¥500 wines with strong price appeal and low-priced whisky offering good value for money and suited to at-home drinking demand remained firm. At the Rokko Mountain Distillery, active participation in nationwide and specialist trade shows raised awareness and expanded the customer base, resulting in steady sales.」

「At the Alco Unit, large orders for year-end gifts received in the previous consolidated fiscal year fell away, but sales performed well across a range of whisky products, from everyday-drinking whisky to highly rare whiskies and cask-strength whisky sold by measure.」

「At the Alco Unit, sales of sake and shochu, whose domestic shipment volumes were trending downward, declined. However, sales of premium-priced imported whisky performed well at stores in the Kobe area, supported by events including free tastings of world malt whiskies and blind tastings of whisky sold by measure.」

「Following the full lifting of the priority preventive measures in March 2022 and the easing of restrictions on activities, demand for premium whisky and premium-priced champagne expanded, particularly at food-service establishments, resulting in strong sales of value-added products.」

「Consumers showed a tendency to drink slightly higher-quality whisky and other beverages than usual at home, and sales of mid-priced single-malt whisky and similar products performed well. Meanwhile, sales of sake, shochu and commercial beer for food-service establishments declined, partly because domestic shipment volumes of these products were trending downward.」

「Following the full lifting of the state of emergency and other measures in September 2021, the food-service market gradually began to reopen, leading to a recovery in sales, while sales of premium-priced champagne and whisky performed well.」

「As the global whisky boom expanded, sales performed well for whisky, supported by expanded sales-floor space and a stronger range of domestic and imported single-malt whiskies, as well as scarce, high-priced domestic whiskies in high demand as gifts. At the same time, sales in the beer category and other products for the on-premise market declined, partly because demand for drinking at home increased due to the impact of COVID-19 prevention measures.」

「Demand for drinking at home increased due to the impact of COVID-19 prevention measures, while sales to restaurants in the on-premise market became increasingly difficult, causing the beer category in the alcoholic beverages division to struggle. At the same time, sales of whisky, for which the range of domestic and imported single-malt whiskies was expanded amid the global whisky boom, and fruit wine imported by the company performed well, driving increases in sales, gross profit and segment profit for the unit.」

「As people spent more time at home due to refraining from going out to prevent the spread of COVID-19, demand for drinking at home increased, driving sales to online retailers and retail stores. As whisky culture became more diverse, demand grew and sales expanded across a broad range of whiskies, from low-priced whisky that could be enjoyed casually at home to higher-priced whisky offering greater added value, whiskies made in countries such as France and Norway, and rare premium whiskies sold in limited quantities each year. However, conditions remained difficult even during the peak year-end and New Year demand season due to people refraining from going out and reduced hours and voluntary closures at restaurants and other establishments, causing sales to wholesale alcohol distributors serving the on-premise market to decline and preventing the segment from increasing sales and gross profit.」

「Demand for drinking at home increased, and sales of low-priced whisky developed in-house performed well. However, sales of luxury champagne and highly luxurious premium Scotch whisky to wholesale alcohol distributors serving the on-premise market declined due to people refraining from going out and the effects of reduced hours and voluntary closures at restaurants and other establishments, preventing the segment from increasing sales and gross profit.」

「As people spent more time at home due to refraining from going out amid the spread of COVID-19, sales increased for low-priced whisky and wine that could be enjoyed casually at home, as well as larger-format whisky offering good value in a somewhat higher price range and standard mid-priced malt whisky supported by core consumers, alongside the expansion of stay-at-home demand. However, sales and gross profit did not increase because sales to wholesale alcohol distributors serving the on-premise market declined as people refrained from going out and restaurants and other establishments closed to prevent the spread of COVID-19.」

「Low-priced wine and sparkling wine products performed strongly, and sales of original products increased as distribution channels expanded, particularly to restaurants. At the same time, declining consumption in the champagne category and price competition continued through the peak year-end demand season, with demand for luxury-oriented, high-priced champagne falling particularly sharply.」

「Sales of whisky continued to perform well, and demand expanded, particularly from September to November 2019, as the Rugby World Cup held in Japan increased opportunities to drink whiskies from various countries. However, sales and gross profit did not increase due to slower growth in consumption of sparkling wines such as champagne and the impact on the market after the consumption tax increase in October of that year on alcoholic beverages in other categories.」

「The whisky category, which is experiencing a global boom, performed well as the company differentiated itself by promptly handling whiskies released one after another by various brands from various countries, in addition to luxury-brand whiskies. Sales of original products also increased as the company handled market-oriented and distinctive products, with the number of products handled expanding. At the same time, the environment remained difficult due to slower growth in domestic champagne consumption and intensified price competition.」

「The difficult environment caused by slower growth in domestic champagne consumption and intensified price competition continued, preventing the division from increasing sales and gross profit.」

「The slowdown in the expansion of domestic consumption in the champagne category, which had previously performed well, and increased price competition became factors pushing down sales and gross profit for the business division as a whole.」

「In the alcoholic beverages division, its main business, beer, sake and shochu, which account for a large share of sales, performed poorly due in part to younger people moving away from beer and changes in consumer preferences toward selective consumption, such as choosing only preferred varieties and savoring them in small quantities rather than drinking large amounts.」

「Sake and shochu, which account for a large share of the product mix, performed poorly amid declining demand due to population decline in recent years, particularly as younger people moved away from alcohol, as well as changes in consumer preferences toward selective consumption, such as choosing only preferred varieties and savoring them in small quantities rather than drinking large amounts.」

「Amid declining demand due to population decline, particularly as younger people increasingly move away from alcohol, restrictions on discount alcohol sales were enforced in June 2017 in connection with revisions to the Liquor Tax Act. Although the number of beer units sold declined from the previous fiscal year due to consumers holding back on purchases following price increases and a decline in customer numbers, sales increased slightly because the average unit price rose, and gross profit has been trending upward.」

「Although demand was supported by growing health consciousness in recent years and younger people drinking less, as well as rush demand for beer-based beverages in May 2017 ahead of the enforcement in June of restrictions on discount alcohol sales accompanying revisions to the Liquor Tax Act, sales did not increase after June because higher prices led consumers to hold back on purchases and reduced customer numbers.」

「At the Alco division, sales in the alcoholic beverages division, its main business, declined from the previous fiscal year due in part to growing health consciousness in recent years and younger people drinking less. However, the gross profit margin and average spend per customer exceeded the previous fiscal year's results, helped by the introduction and installation of sake cellars at all Hour Liquor stores at the end of March, efforts to strengthen sales of cellar products such as sake and wine, and rush demand for beer-based beverages ahead of the enforcement in June of restrictions on discount alcohol sales accompanying revisions to the Liquor Tax Act. In the food division, the company strengthened sampling sales through promotional events for Italian and Hokkaido fairs and proposals for new grocery products.」

「At the Alco division, sales in the alcoholic beverages division, its main business, declined from the previous fiscal year due in part to growing health consciousness in recent years and younger people drinking less. However, the gross profit margin improved as sales increased in high-margin categories such as wine and whisky.」

「At the Alco division, sales in the alcoholic beverages division, its main business, declined from the previous fiscal year due in part to growing health consciousness in recent years and younger people drinking less, although the gross profit margin improved.」