Kirin capitalizes on Japan’s home alcohol consumption surge with on-the-go bottle formats

26 Jan 2021 --- Mercian, Kirin Holdings’ alcoholic beverage producing unit based in Japan, is celebrating record-high sales for its Frontera brand wine.

The past COVID-19 stricken year expanded luxury home drinking, says Mercian, leading to an annual sales volume growth of 103 percent year on year.

Mercian’s annual sales volume of its Frontera series from the Chilean wine producers Concha y Toro reached 620,000 cases in 2020 – a record high since its launch in 2000 – making it the fourth consecutive year of record sales volume.

In 2019, Chile ranked first in import volume by still wine-oriented country for the fifth consecutive year, contributing greatly to the expansion of the Japanese wine market.

Mercian will also launch two ciders in its Oishii-Sankaboushizai-Mutenka Wine lineup in 290 mL metal cans shaped like bottles at national convenience stores in late March. 

The move aligns with Merican’s expansion into the “casual sparkling wine” category, where its 2020 sales volume has achieved 161 percent of the previous year’s level.

The 2020 launch of Frontera Pinot Noir in 1.5 L PET bottles became popular among customers who frequently drink wine at home.Plastic bottles for “train culture”
Another reason for Frontera’s sales success has been the launch of a 1.5 L PET bottle for its Pinot Noir, popular among customers who frequently drink wine at home. The sales volume grew 140 percent year on year. 

For consumers who buy wine at supermarkets and convenience stores, PET wine bottles’ advantages are their light weight, resilience to breakage, easy disposal and consumption.

“For context, Japan is a ‘train culture,’” Haruna Yamazaki, Kirin corporate communication, tells PackagingInsights.

“Most shoppers will take a train, bike, or even walk to stores as opposed to driving. This means that consumers carry their groceries on the way home. 

“With PET bottles, the burden is lightened and the fear the bottle will break if dropped is mitigated,” she explains. Since PET wine bottles have screw-on caps, they omit the cork, further facilitating bottle use. 

Mercian’s craft sparkling wine.Japan’s higher recycling rates
Post-consumption, the PET wine bottles are easily separated and recycled with other PET bottles such as soft drinks.

“In Japan, we have to separate trash ourselves and throw out the trash on specific days. Thus, the PET bottle can be thrown away with non-wine PET bottles on the specific day to throw away plastics,” Yamazaki explains.

“Plastic bottles use is well received by Japanese consumers because of their high environmental awareness,” she says, pointing out the recycling rate of PET bottles in Japan is higher than that of some other regions.

Casual recappable cans
Previously exclusively available in glass bottles, Mercian is set to launch its antioxidant-free wines and ciders in its Oishii-Sankaboushizai-Mutenka Wine series in 290 mL bottle cans, or cans with a spouted neck. 

The small-volume, recappable bottle cans target women in their 20s and 30s specifically, Yamazaki adds, who do not usually drink wine on a daily basis but are interested.

So far, the company has seen people in their 20s to 40s particularly attracted to the Oishii-Sankaboushizai-Mutenka Wines for its “casualness” and “ease of drinking.”

With a moderate alcohol content of 5 percent, the Delicious Antioxidant-Free Wine Cider is made with 100 percent apple juice without adding antioxidants. 

The grapefruit variant contains 4 percent alcohol, similarly produced with 100 percent grapefruit juice.

Mercian’s ciders will arrive to Japanese convenience stores in recappable bottle cans in March.Just a little alcohol
The “sober curious” movement is gathering pace in the beverage arena as more individuals opt to lower their alcohol intake or remove it altogether for health purposes.

According to Innova Market Insights data, F&B launches with low/no alcohol positionings have risen 21 percent (Global CAGR) between 2016 and 2020. 

Asia is the second fastest-growing region for the positionings, seeing a CAGR of 31 percent, just behind Australasia’s 53 percent (2016-2020).

According to a 2018 survey by the market researcher, China is the top country for consumers to purchase low/no alcohol options, with 28 percent of respondents saying they would typically buy these products on a grocery trip. 

Brazil, Mexico and Germany followed with 25, 19 and 18 percent, respectively. Meanwhile, just 9 percent of UK consumers and 8 percent of US consumers are regularly purchasing low- and no-alcohol beverages. 

By Anni Schleicher