Suntory's Kinmugi becomes a beer: Japan's unified liquor tax and the everyday pint

How the unified liquor tax is changing Japan’s beer market

In Japan, beer-flavoured drinks are divided into “beer” and “happoshu” (low-malt sparkling liquor) according to factors such as the amount of malt used. There is also a “new genre” (the so-called third beer), which uses ingredients other than malt, and the differences in tax rates between these categories have translated directly into differences in shelf prices. Under the liquor tax reform of October 2026, the tax on beer fell, while the tax on happoshu, including the new genre, rose. As a result, the tax rates across beer-type drinks have been brought into line. At a brand briefing held in Osaka on 3 September, Kenichi Suzue, Suntory’s Managing Executive Officer and head of its Kinki Sales Division, explained that at the time of the previous reform in 2023, the beer-type market as a whole shrank by about 4%. He added that if nothing were done, the market could continue to shrink this time as well.

Over 50% malt: reworking the recipe

The company has therefore rebrewed Kinmugi and Kinmugi (75% Less Sugar), previously popular and affordable happoshu, as beer. The proportion of malt has been raised to over 50%, giving a taste in which the flavour of the barley comes through more clearly. Because the wheat spirits (a distilled spirit made from wheat) used until now could no longer be used, the brewing and fermentation conditions were also reviewed. The aim is to strengthen the body of the beer while keeping the clean finish that is the brand’s hallmark. The newly added Kinmugi (Hojun) uses a malt the company calls “diamond malt”, the double decoction method known from traditional German and Czech brewing, and mashing in copper kettles.

‘Daily beer’: aiming for a fifth of the beer-type market

The expected price of a six-pack of 350 ml cans was about 880 yen before tax. The company calls beer in this kind of everyday price range “daily beer” and expects it eventually to account for about a fifth of the entire beer-type market. The target for the Kinmugi brand is 35 million cases, converted to large bottles. To coincide with the launch on 6 October, the packaging was changed so that it is clear the product has become a beer. In the Kansai region, the company also ran advertising at stations and on public transport, as well as tasting sessions for business partners. Distributors have expressed approval of the taste as well as expectations of large-scale promotions, and orders reportedly exceeded the plan before the launch.

Although Kinmugi is still rarely seen in Europe, this move reflects a change across Japan’s beer aisles as a whole. If you pick up a can of beer imported from Japan, try checking whether the Japanese-language “item” (hinmoku) field says “beer” or “happoshu”. You will begin to see the link between tax systems and the way a drink is made. Readers in Germany and the Czech Republic, who are familiar with decoction brewing, might enjoy comparing the malt body of this lager from a major Japanese brewer with that of their local beers. Light, clean Japanese beer should pair easily with salty dishes such as fried food and yakitori.

Sources Shokuhin Shimbun, “Kinmugi becomes beer: Suntory to create a ‘daily beer market’”