Japanese current market regarding Beer including size of the market, consumption by comparison with other countries, entertainmet featured marketing activities, etc.

1. < Outline of trend Analysis >
Japanese Beer Market
Japanese Brewers’
Entertainment MKTG
Sept, 2010
Cozy Mizoguchi
cozymizo@hotmail.co.jp / +81-80-1205-8448

2. Japanese Beer Market
Japanese Brewers’ Entertainment MKTG
1 Volume of Japanese Beers Market
Index 2 Beers Consumption by Japanese local
3 Beers Consumption by Country / Top5 Brewers
4 Top 5 Country by 1 adult consumption
5 Japanese Beer Market Shares by Brewers
6 Japanese Beers Market Shares by Products
7 Popular Beer Brand in Japan
8 The Main Reasons for Selecting Beers
9 Main Retailers to buy Alcohol by Drinking Frequency
10 Drinking Alcohol Frequency by Age
11 Media Strategy
12 -15 Entertainments featured Marketing <1> - <4>
16 – 17 Marketing Direction <1> - <2>Cozy Mizoguchi, all rights reserved 2010

3. １ Volume of Japanese Beers Market
< # of sold beers in Japan / 2010 Jan – Jul >
- Japanese Brewers = 1,585,233KL 95.5% from last year
- Foreign Brewers = 3,774KL 71.3%
- Total Consumption = 1,589,007KL 95.5%
< Trend of market size in past 6 years >
Units: trillion yen
2.9 3.0 3.1 3.0
2.9
2.9
Japanese Beers
market to be stable,
but various new
kind of beers
2003 2004 2005 2006 2007 2008 released
*resources from Japanese Brewers Association Cozy Mizoguchi, all rights reserved 2010

4. 2 Beers Consumption by Japanese local
< Top10 prefecture for consuming beers by 1 adult annually >
#1 Tokyo = 87.4 bottles / 55.4L
#2 Kouchi = 73.3 / 46.4
#3 Oosaka 72.0 / 45.6
#4 Nagano 64.8 / 41.0 8
#5 Ishikawa 64.5 / 40.8
#6 Kyoto 64.3 / 40.7 59
7 4
#7 Fukui 61.9 / 39.2 6
10 3 1
#8 Akita 60.7 / 38.4
#9 Toyama 59.6 / 37.7 2
#10 Hiroshima 58.8 / 37.2
*resources from Japanese Brewers Association
Cozy Mizoguchi, all rights reserved 2010

5. 3 Beers Consumption by Country / Top5 Brewers
2008 Beers Consumption by countries
Country Kilo Litters shares % of Growth
Top 5 Brewers’ shares, worldwide
1 China: 4,081.7 22.9% 4.3% 2005
InVeb/ Belgium
2 USA: 2,503.5 14.1% 0.5% SAB Miller/ UK+S
Africa
3 Russia: 1,091.0 6.1% 1.5%
Anheuser-
4 Brazil: 1,004.5 5.6% -0.4% Busch/ USA
others
5 Germany: 911.3 5.1% -0.8%
Heineken/
6 Mexico: 644.0 3.6% 1.0% Netherlands
7 Japan: 611.1 3.4% -2.7% Carlsberg/
Denmark
8 UK: 512.8 2.9% -4.1%
9 Poland: 356.2 2.0% 1.7% *resources from Nikkei
Associates
10 Spain: 342.3 1.9% -6.0%
*resources from Japanese Brewers Association Cozy Mizoguchi, all rights reserved 2010

6. 4 Top 5 Country by 1 adult consumption
2008 Beers Annual Consumption by 1 adult
Country Litters Bottles@633ml times Japanese
1 Chez 149.9L 236.8 3.1times
2 Ireland 124.8 197.2 2.6
3 Germany 110.6 174.7 2.3
4 Austria 109.5 173.0 2.3
5 Poland 92.5 146.1 1.9
14 UK 83.5 131.9 1.8
16 USA 82.3 130.0 1.8
39 Japan 47.9 75.7
54 China 29.0 45.8 0.6
*resources from Japanese Brewers Association Cozy Mizoguchi, all rights reserved 2010

7. 5 Japanese Beer Market Shares by Brewers
Shares by Brewers
Japanese Beers
market to be
covered by 4 Majors
2008 J F M A M J J A S O N D
*resources from Nikkei Associates Cozy Mizoguchi, all rights reserved 2010

8. 6 Japanese Beers Market Shares by Products
Shares by Beer Shares by Low-Malt Beer
Shares by Premium Beer Shares by Quasi Beer
The most growing category with 14.8%
*resources from Nikkei Associates increasing from last Mizoguchi, all rights reserved 2010
Cozy year.

9. 7 Popular Beer Brand in Japan
＜ Top 5 Popular Beers＞ ＜ Top 5 Popular Quasi＞
1 Super Dry 1 Kinmugi
2 Ichiban Shibori 2 Nodogoshi-Nama
3 Ebisu 3 Clear Asahi
4 The Premium Malts 4 Mugi to Hop
5 Lager 5 Draft One
＜ Top 5 Popular low-Malt＞
1 Tanrei
2 Honnama Draft
3 Tanrei Green Label
4 Tanrei Zero
5 Enjuku Cozy Mizoguchi, all rights reserved 2010

10. 8 The Main Reasons for Selecting Beers
Low-
Beer Malt Quasi Beer
Tastes
The street of
the throat is
feelings good
Price
Low
Calorie
Brewers
*resources from Kakaku.com
Cozy Mizoguchi, all rights reserved 2010

11. 9 Main Retailers to buy Alcohol by Drinking Frequency
GMS Discount Stores Liquors
CVS eCommerce Others
Everyday
4,5 times
per week
2,3 times
per week
1 time per
week
1 time per
2 weeks
1 time per
1 month
*resources from Kakaku.com Cozy Mizoguchi, all rights reserved 2010

12. 10 Drinking Alcohol Frequency by Age
Every 4,5 times 2,3 times
day per week per week
1 time per 1 time per 1 time per Less than 1 time
week 2 weeks 1 month per 1 month
20s
30s
40s
50s
60s
*resources from Kakaku.com Cozy Mizoguchi, all rights reserved 2010

13. 11 Media Strategy
Brewers to try to reach targeting users efficiently
by maximizing various kind of media
*resources
from NRI with
Possibility to Feedback via AD
1 Brewer’s reach those media Effectiveness
media
development # of people to reach
Entire relevant market
x # of Encouraged to buy
# of people to reach
= # of Encouraged to buy
Entire relevant market
T V 49% +2.5% +1.2%
Magazine 9% +2.2% +0.2%
Papers 62% +2.9% +1.8%
WEB 23% +2.8% +0.6%
Brewers to try to get attentions from users by
effectively leveraging various Entertainments Cozy Mizoguchi, all rights reserved 2010

14. 12 Entertainments featured Marketing <1>
From more than 30 years ago, they have been sponsoring
Japanese nation soccer team, organizing “Kirin Cup” = national
matches with so many kind of countries
Heineken = OEM from Kirin to
promote it by various kind of
Music related campaign,
Smirnoff to be expanded brand
awareness by Comedian featured
web centric campaign. Cozy Mizoguchi, all rights reserved 2010

15. 13 Entertainments featured Marketing <2>
Asahi is very eager to create image with MUSIC, by sponsoring
various kind of concerts, displaying billboard @ lots of Live venues,
etc. Used to pursue special campaign with MTV.
Web centric “Short films” campaign
sponsoring WBC = World Baseball Classic
Cozy Mizoguchi, all rights reserved 2010

16. 14 Entertainments featured Marketing <3>
Suntory is very famous as Entertainment supportive
company, having their own classic concert facility, etc.
Featuring 1 of top ranked rock
artist to promote their
Premium category beer.
Sponsoring Ladies Golf Tournament.
Organizing Senior
Baseball game
featuring various
famous ex- players
Having their own Rugby team.
Cozy Mizoguchi, all rights reserved 2010

17. 15 Entertainments featured Marketing <4>
Sapporo is strongly supporting Japanese
national level kind of event “Hakone Ekiden”
Doing special campaign including
various kind of celebrities from
Artists to Athletes by effectively
leveraging among TV + Web.
Launching 1 of Japanese
Professional soccer team
logo featured beer.
Cozy Mizoguchi, all rights reserved 2010

18. 16 Marketing Direction <1>
< Direction >
Access to Targeting Cluster by building
up effective Cross Promotional media
Ground media × Aerial media
GOAL = Sell more Beers! Cozy Mizoguchi, all rights reserved / 20100823

19. 17 Marketing Direction <2>
- Main Targeting Users by Accessing Tools to Internet
based on Age / Gender –
-MALE:50.3% -Ave Age:43.5
= Female: housewife /30s ELDER
above + Male: Office
Workers/50s above, having
his own house – Less Using P C Main
Married %:68.3% Group -MALE:63.6% -Ave
Group Age:41.3 = Male:
-MALE:47.5% - Office Workers/30s -MALE:81.7%
Other above, having his
Ave Age:41.0 = Devises -Ave Age:30.7 =
Female: own house –
Group Male: IT, Tech
housewife /30s Married %:51.8%
related, Services,
above + Male: Media, etc / 20 -
Office Workers / 30s,
FEMALE MALE
50s above, having
PC + Mobile -having his own
his own house
Married %:57.4% Group house
-MALE:58.4% -Ave -Married %:32.5%
-MALE:46.9%
-Ave Age:33.2 = Mobile Main Age:30.6 = Female: -Higher PC = Mac
students / Under Usage, Higher
Female: housewife, Group Smart -
Students /10-30s + YOUNGER 20s + Male: expenditure to Net
Students, Tech phone
Male: Students/ 20-30s related
related / Under 30s, Group
Married %:47.1%
Married %:33.3%
*resource from impress R&D, 2010 Cozy Mizoguchi, all rights reserved 2010