21 December 2007 – Sapporo Breweries Ltd will raise prices for its beer products for the first time since 1990 in a bid to absorb rising material costs, the company has announced.
The brewer estimates that higher prices for such commodities as malt, corn, fuel, aluminium and cardboard, will add three billion yen (USD 26.4 million) to its procurement costs in 2008.
The exact amount of the price increase has not yet been disclosed, but retail prices are expected to rise by 3 to 5% from 1 April 2008, when the hike comes into effect.
The decision follows similar announcements by Japan’s top two brewers, Asahi Breweries Ltd and Kirin Brewery Co. Kirin decided to raise the prices of its beer products by 3 to 5%, effective 1 February 2008, as reported on FLEXNEWS at the end of October. Asahi also decided on a 3 to 5% increase, effective 1 March 2008. Another Japanese brewer, Suntori, could be following suit.