Michael Porter Diamond Model
■ World’s total consumption volume was around 150.392 million kL (up 4.2% from the previous
year) and growth has been recorded for 19 consecutive years. Total consumption volume is
equivalent to filling 121 Tokyo Domes.
■ As for individual countries, China was the biggest consumer (up 14.6% from the previous year),
topping the list for 2 years in a row. Russia has recently shown a noticeable growth (up 11.1%
from the previous year) to move up one rank, sharing the 4th position with Brazil. Also, the
Japanese market has grown from the previous year (up 0.7%) for the first time since 2001.
■ Regionally, Asia is coming close to Europe, which is the world’s largest beer market. This is
due to the growth in China, of course, but is also attributed to a significant increase in Thailand
(up 10% from the previous year) and the Philippines (up 15.6% from the previous year).
1. Beer Consumption by Country (Table 1)
2.Beer Consumption by Region (Table 2)
3.Per Capita Beer Consumption (Table 3)
Worldwide, beer consumption in 2004 increased by approximately 6.1 million kL (equivalent to 9.64
billion bottles in standard size 633-mL bottles) from the previous year, amounting to around 150.392
million kL (up 4.2% from the previous year; equivalent to 237.59 billion bottles in standard size 633-mL
bottles), recording 19 years of consecutive growth.
If Tokyo Dome, which has a capacity of 1.24 million kL, is compared to one beer mug, the total
consumption volume in the world would be equivalent to 121 mugs and the increase from previous
year 4.9 mugs. If Osaka Dome with a capacity 1.2 million kL is used in the comparison, the total
consumption would amount to 125 mugs and the year-on-year increase 5.1 mugs.
Moving up one rank last year, China has secured its No. 1 position again this year. The volume
consumed in China is 4.67 million kL more than that in the US, which firmly establishes this Asian
country as the worldï¿½s largest beer market. Compared to last year, Chinaï¿½s growth rate has
increased, which suggests a greater potential for the market to expand. Furthermore, due to a growing
health consciousness, people in Russia are switching from vodka to lighter alcoholic beverages such
as beer. This trend is reflected in the rapid growth of the Russian beer consumption market, which
now shares a high rank with Brazil. Asian countries enjoying strong economic growth, Thailand and
the Philippines in particular, also demonstrate a rapid growth. The market in Japan remains at the
same position in the ranking but has grown 0.7% after 2 years of decline due to the record-breaking
heat-wave and introduction of new genre in 2004.
All regions except for Oceania have demonstrated growth, boosting the worldwide consumption
volume. The growing Asian market has pushed the world consumption volume up, and is coming close
to Europe, which is the largest beer market.
No significant changes are seen in the top ranking, but the mature markets in European countries
have all shown a decrease, including the Czech Republic which has been on the top for 12 years. Per
capita consumption in Japan has increased from last year by approximately 0.6 bottles in standard
size 633-mL bottles, but dropped to the 32nd position.
In Japan,Kirinhasrecentlyterminatedhigh-profile mergertalkswithrival SuntoryHoldingsLtd.
‘‘While mergertalkshave failed,marketandcompetitionenvironmentchangeshave promptedthe two
companies(the first- andsecond-largestfoodmakersinJapan) tohave negotiationsonagrand design,’’
Miyake said.‘‘International foodindustryrealignmentwill accelerate inthe future.’‘
Miyake saidhe will tryto achieve the groupsalestargetof 3 trillionyenfor2015, comparedwith2.28
trillionyenfor2009. ‘‘The keypointisthatall groupcompaniesshouldenhancecooperationin
In domesticoperations,KirinplanstolaunchinApril the new healthfoodbrandof Plus-Iunderwhich
groupcompanieswill launchproductsfortheirrespective businessareas.
‘‘Thisisa newbusinessforthe future,’’Miyake said.‘‘We aimtoachieve 30billionyeninsalesforthe
Aims of 2007-2009 Medium-term Business Plan Position KIRIN as a brand that symbolizes trust
and vitality Deliver the enjoyment of food and health through products and services in each
operational area Contribute to the continuous development of a safe and secure society,
maintaining a strong reputation as a corporate group that values its coex istence with
communities Basic strategy 1. Strengthen Kirin's business foundations and realize a quantum
leap in growth (1) Create renewed growth in the domestic alcohol beverage business (2) Move
further toward becoming a comprehensive beveragesgroup (3) Internationalize Kirin's business
(4) Develop the health food and functional food business (5) Accelerate growth in
pharmaceuticals and leverage proprietary strengths to develop the agribio business 2. Pursue a
financial strategy that maximizescorporate value 3. Adopt a new group management structure 4.
Raise KIRIN brand value and implement Kirin Group CSR Quantitative targets
2009 target 2006 forecast Change KV2015 targets
including liquor tax
¥2.15 trillion ¥1.68 trillion +28.0% ¥3 trillion
excluding liquor tax
¥1.7 trillion ¥1.27 trillion +33.9% ¥2.5 trillion
Operating income ¥150 billion plus ¥117 billion +28% plus ¥250 billion plus
Operating profit margin 7% plus 7% - 8% plus
Note 1: Total consumption volume in Japan includes that of beer, happo-shu (low-malt beer) and new
Note 2: Figures in 2003 may have been corrected from the previous survey. In that case, updated
figures are used.
Source:Kirin’s original survey conducted on beer associations around the world
ERC Statistics International Ltd.
The Barth Report ï¿½Hopsï¿½ 2004/2005 (Joh. Barth & Sohn) and others
* Attachments:Beer Consumption by Country, Beer Consumption by Region, Per Capita Beer
Consumption by Country (one page each)
including liquor tax
Operating profit margin
excluding liquor tax
9% 9% - 10% plus
ROE 7% plus 5.4% + 1.6 points 10%
Secure higher levels of customer support and loyalty in the growing new genre category,
and strengthen Kirin's sweeping position in the happo-shu category. Reinforce core
brands in the beer category
Further strengthen Kirin's top position in the RTD (Ready to Drink) category for pre-
mixed cocktails, aiming to develop our product portfolio and grow overall demand.
Expand Kirin's presence in the markets for type A and type B shochu
Strengthen marketing activities tailored to individual areas, reinforce quality
improvement and safety and reliability in our raw materials and at our production
facilities, and pursue efficient SCM strategy to ensure that each division produces,
transports and sells products of value to customers
Create synergies with other Kirin group companies such as Kirin Beverage and Mercian,
targeting all parts of the value chain from product development through to sales
Develop our own social contribution program based around the themes of the
environment, product development, and food safety and reliability, and making use of
using the technology of Kirin Group
Motorola picking system streamlines
Kirin Brewery supply chain
When Japanese soccer fans settle down in front of the TV to watch this year’s soccer World Cup in
Germany, there’s a good chance they’ll do so while enjoying a Kirin beer
After six years as No. 2, Kirin this year looks set to become Japan’s biggest brewer, outselling
archrival Asahi Breweries during the first three months of 2006. And as sponsor of Japan’s
national soccer team, Kirin reckons the World Cup will help increase beer sales by 5% this year.
The early signs are good. More than 5 million beer-loving fans have signed up for a promotion
offering a chance to win soccer T-shirts in return for buying Kirin brews.
Kirin Brewery Co., the official sponsor of the Japanese team, has released a limited edition beer,
with pictures of team members on the cans.
TROPICANA PRODUCTS AND KIRIN BREWERY ESTABLISH JOINT VENTURE
FOR JUICES AND FRUIT-BASED BEVERAGES
MONTREAL, Oct. 12 /PRNewswire/ -- The Seagram Company Ltd. (NYSE: VO) announced
today that its Tropicana Products, Inc. subsidiary and Kirin Brewery Co., Ltd. of Japan have
signed an agreement to establish a joint venture in Tokyo to produce and market juices and fruit-
based beverages. The joint venture will be called Kirin-Tropicana, Inc.
Robert L. Soran, Tropicana president, said: "We established our Tropicana International Group
in 1989 to implement expansion into worldwide markets. Our agreement with Kirin marks the
first such …