Kirin Holdings president Yoshinori Minakata drew criticism after telling reporters that, while alcohol can cause physical harm, moderate consumption may have a positive effect on mental health. Speaking on the sidelines of a drinking event last week, Minakata said, "From a spiritual point of view or mental health point of view, I think alcohol can be a good thing. From the perspective of physical health, it is true that alcohol can cause some harm." He added, "Alcohol helps people be happy... It energizes society."
The remarks come as major brewers try to adapt to declining drinking trends by expanding low-alcohol and alcohol-free products. Anheuser-Busch InBev, Heineken and Kirin now sell zero-alcohol versions of key brands, including Becks Blue, Heineken 0.0 and Kirin Free. Carlsberg also moved beyond beer, agreeing in mid-2024 to buy British soft drinks maker Britvic for 3.3 billion pounds, partly to broaden its bottling business for PepsiCo and strengthen its position in Britain.
Kirin has been diversifying more aggressively in Japan, where an aging population and falling alcohol consumption, after a peak in the late 1990s, have pressured the beer market. The company entered pharmaceuticals in the 1980s and is now expanding in health sciences using its fermentation and biotechnology expertise. Its shares are up more than a third over the past 12 months, though they have lagged the Nikkei 225.
The strategy has included the 2023 purchase of Australian health brand Blackmores, the acquisition of Fancl a year later, and the sale of Four Roses Bourbon in April. Kirin expects Blackmores to serve as a platform for vitamins and supplements across Asia, including its LC-plasma immune-support product. Even so, analysts and investors question whether the company can grow health sciences fast enough to offset declining alcohol sales before the mix of beer, supplements and probiotics becomes too unfocused. One person familiar with management thinking said Kirin needs to "pray to God that health sciences will take off" before Japanese alcohol consumption drops sharply.
