Combined shipments of beer and "happoshu" low-malt beer by Japan's five major breweries fell 6.3 percent in 2003 from the previous year for the second straight annual decline.

Data released Thursday showed that beer and happoshu shipments by Kirin Brewery Co., Asahi Breweries Ltd., Sapporo Holdings Ltd., Suntory Ltd. and Orion Breweries Ltd. totaled 513.2 million cases last year. One case holds 20 large bottles, or 12.66 liters, of happoshu or beer.

The percentage drop was the second-largest in the postwar period after the 7.4 percent fall marked in 1976.

The sluggish shipments were caused mainly by an unusually cool summer and the May 1 tax hike on happoshu products, industry officials said.

Shipments of happoshu, which is priced lower than beer, fell 1.0 percent to 201.51 million cases, down for the first time since the product was put on the market in 1994.

Beer shipments dropped 9.4 percent to 311.69 million cases for the seventh consecutive yearly decline.

Happoshu accounted for 39.3 percent of the total. However, shipments of happoshu for households represented 52.2 percent, surpassing beer for the first time.

By maker, Asahi achieved a record-high market share of 39.9 percent, maintaining the top spot for the third consecutive year. Kirin came in second with a 35.7 percent share, followed by Sapporo at 13.1 percent, Suntory at 10.4 percent and Orion at 0.8 percent.

Kirin eyes Beijing

Bloomberg Kirin Beverage Corp., Japan's biggest soft drink company, will set up a venture in China with Uni-President Enterprises Co., Taiwan's largest food company, to tap rising demand in the Beijing region.

"Beijing is investing in big projects for the 2008 Olympics and is home to 12 million people," Kirin Beverage said in a news release Thursday. "We expect demand for soft drinks to expand greatly."

Kirin Beverage is majority owned by Kirin Brewery Co., Japan's second-largest beer maker.

Kirin Brewery wants to expand sales of soft drinks and beer in China because demand at home has waned as weak consumer demand and higher liquor taxes have crimped sales. Koichiro Aramaki, Kirin Brewery's president, said earlier this month that the company wants to form ties with brewers in northeast China.