Weak Sales from Sluggish Domestic Alcoholic Beverage Demand

「Domestic sales are growing steadily, but exports have been significantly affected by a decline in orders, particularly from Taiwan, leaving sales roughly in line with the previous year.」

「The easing of COVID-19 restrictions revitalized restaurants and tourism, resulting in domestic taxable sales above the previous year. Although sales of liqueurs to Taiwan declined sharply, total sales exceeded the previous year.」

「During the fiscal year, easing COVID-19 restrictions revitalized restaurants and tourism, resulting in sales above the previous year.」

「Despite the prolonged impact of COVID-19, sales and profit were recovering across all categories.」

「Despite the prolonged impact of COVID-19, sales and profit were recovering across all categories, particularly exports of liqueurs to Taiwan.」

「Despite the prolonged impact of COVID-19, sales and profit were recovering across all categories, particularly exports of liqueurs to Taiwan, which increased 242.9% year on year.」

「Domestic sales of sake, shochu and liqueurs were sluggish,」

「Compared with the previous year, sake sales were strong, but sales of shochu and liqueurs were sluggish. Overall sales declined because of prolonged emergency declarations centered on the Tokyo metropolitan area, restaurant closures and restrictions on serving alcoholic beverages. Profit also declined because repairs exceeding ¥18 million were incurred due to aging equipment and other factors.」

「Compared with the previous year, sake sales were strong, but sales of shochu and liqueurs were sluggish. Overall sales declined because of the prolonged COVID-19 emergency declarations centered on the Tokyo metropolitan area, restaurant closures and restrictions on serving alcoholic beverages,」

「The domestic alcoholic beverage market as a whole remains a very difficult operating environment,」

「From September onward, sales showed signs of recovery helped by the government’s Go To measures, but the outlook remained uncertain and a decline in consumption was a concern as new infections began to spread again from December 2020.」

「After the state of emergency was lifted in June, restaurant sales showed signs of gradual recovery, while sales at supermarkets and liquor stores remained strong. Total business sales in June were recovering toward the previous fiscal year’s level, but torrential-rain damage to a logistics warehouse in July caused a shipment suspension of approximately 2 weeks, and product shortages continued through August, limiting sales growth.」

「During the state of emergency from April to May 2020, restaurant sales were almost nonexistent as the spread of COVID-19 continued. Sales at supermarkets and liquor stores increased from the previous fiscal year because of demand for drinking at home, but total sales for the business in April and May declined substantially from the previous year.」

「In a difficult environment where, excluding RTDs, all sake, shochu and beer categories in the domestic market were said to be below the previous year,」

「In a difficult domestic market where, excluding RTDs, sake, shochu and beer were all said to be below the previous year, our business was no exception,」

「In a difficult domestic market where, excluding RTDs, sake, shochu and beer were all said to be below the previous year, our business was no exception. However, the impact of the sales decline from last year’s restructuring and discontinuation of unprofitable sake and other products finally began to subside. Exports to Asia increased and temporary front-loaded demand arose in the second half ahead of the consumption-tax increase. Sales were slightly below the previous year, but profit remained solid.」

「At the business, our core sake and shochu products have struggled somewhat, while liqueurs have remained strong.」

「While sake and shochu are sluggish as consumers move away from alcohol, liqueurs are driving the market. However, our product mix has not yet shifted sufficiently to follow this trend. As demand for core shochu products declined sharply, the increase in discontinued items from the product-mix review forced a substantial decline in sales. As a result, sales were ¥1,861 million, down 9.0% year on year, and segment profit, or operating profit, was ¥83 million, down 39.2%.」

「While sake and shochu are sluggish as consumers move away from alcohol, liqueurs are driving the market. However, our product mix has not yet shifted sufficiently to follow this trend. Demand for core shochu products fell sharply because of poor weather and extreme summer heat, forcing a substantial decline in sales. As a result, sales were ¥1,112 million, down 6.3% year on year, and segment loss, or operating loss, was ¥3 million, compared with segment profit of ¥27 million.」

「While sake and shochu are sluggish as consumers move away from alcohol, liqueurs are driving the market. However, our product mix has not yet shifted sufficiently to benefit fully from this trend,」

「The industry has long faced declining birth rates and younger people moving away from alcohol. To respond to changes in market structure and a shrinking market, we aim to build a structure capable of securing stable earnings over the medium to long term,」

「As consumer preferences, particularly among younger people, shift sharply from shochu toward lower-alcohol liqueurs, wine and whiskey, we continued to focus on developing and selling high-value-added products to benefit from new demand and inbound demand. Poor weather nationwide during the summer reduced customer traffic at restaurants, while concentrated heavy rain in northwestern Oita temporarily reduced visitors to major tourist destinations, also affecting the business to some extent, particularly commercial sales.」

「As consumer preferences, particularly among younger people, shift sharply from shochu toward lower-alcohol liqueurs, wine and whiskey, we continued to focus on developing and selling high-value-added products to benefit from new demand and inbound demand, but」

「Although liqueur products maintained their strong performance from the previous fiscal year, sales of shochu in large containers, packaged shochu and sake were sluggish.」