Consumption Of Alcoholic Beverages in Japan

•For a long time, Japan has

been a “Beer country", a
reference in terms of
production and consumption
of Beer.

•This accounts for two thirds

of the 9 billion liters of
alcohol consumed.
Potential Market for
Heineken in Japan
•Japan consumes --% of
world’s consumption as per
the statistics of 2010.
•Japan imports ---% of world’s
share

•Beer is produced & imported

in the nation, and it imports
other categories of alcohol
like vodka and scotch.
 India Process
• Pls read the below pointers. Can we take this as base for our case study.
• Heineken contracts 20,000 farmers in the southern Indian state of Karnataka to grow barley for all
the beer they sell in India & export — including Heineken beer, which is branded as European but
brewed in India.
• The company has been operating in India since 2009, and last year made a profit of about $7.5
million on $230 million in revenue — enough to convince it to invest $500 million more in India
over the next five years.
• Heineken has been in India less than three years, but the company is expanding.
• Heineken bought a 37.5% interest in India's largest alcohol company, United Breweries,
• Settlement of Bills: The Government prescribes conditions for exchange control and settlement of
bills related to exports under the authority of the Foreign Exchange Regulation Act, 1973. For
normal commercial exports to all countries, except Nepal and Bhutan, exporters are required to
complete the GR Form in duplicate. The GR Form covers exports not made by post.
• With few exceptions, all exports must be declared on the appropriate form and the exporter's code
number as assigned by the Reserve Bank of India must be shown on the form.
• The payment arrangements are letter of credit, sight draft, time draft and shipment on
consignment. The time limit for settlement of export proceeds, that is, the amount representing
the full export value of the goods, is six months. A maximum of 15 months is allowed for exports to
Indian-owned warehouses abroad.
Documents: The following documents are required for exports:

• GR form;
• export license;
• export declaration;
• customs entry form;
• customs invoice;
• commercial invoice;
• certificate of origin;
• bill of lading/air waybill;
• packing list.

Special documents may be required depending on the type of product or destination. Certain export
products may require a quality control inspection certificate from the Export Inspection Agency.
Some food and pharmaceutical product may require a health or sanitary certificate for export.
• To cover products under GSP (generalized system of preferences) a certificate of origin may be required. The
Export Inspection Agency, the various export promotion councils, chambers of commerce or the regional offices of
the Chief Controller of Imports and Exports are the responsible bodies for issuing the certificate of origin.
• Today, Indian beer is brewed at various places in the country and is mainly top-fermented. Indian rums have
developed a reputation for smoothness and flavors. The demand of India’s Alcoholic Beverages products like Beer
Made From Malt,
• India is the third largest market for alcoholic beverages in the world.There are 12 joint venture companies having
a licensed capacity of 33,919 kilo-litres p.a. for production of grain based alcoholic beverages. Around 56 units are
manufacturing beer under license from the Government of India.The two segments in the liquor segment, country
liquor and Indian Made Foreign Liquor, both cater to different sections of society.

India Facts and Figures:

The country has exported 1,32,113.32 MT of Alcoholic products to the world for the worth of Rs. 790.20 crores during
the year 2010-11.
Major Export Destinations (2010-11) :United Arab Emirates, Angola, Ghana, Singapore, Nepal, Netherland and Oman
during the period
 KEY TRADE
BARRIERS AND
ISSUES:
So How can we Export??
 Points to Note in Exports to and Sales in Japan

• As per the act alcoholic beverages are subject to food sanitation, which is
conducted to assess the types and details of the raw ingredients, and to test the
The Food types and contents of additives, pesticide residues, mycotoxins.
Sanitation Act

• Under the law, wholesaling of alcoholic beverages is operated in a licensing

system, in which those that have obtained a wholesale dealer's license for all
The Liquor Tax alcoholic beverages or imported alcohol beverages from the director of a tax
Act office are authorized to wholesale imported alcoholic beverages.

• Under the Customs Act, the importing of cargo with labeling that falsifies the
The Customs origin of the contents, etc. is banned.
Act
Procedures for Authorization of Importing and Sales

Tobacco, drugs, medicines, weapons and their parts, strategic materials

and their parts, CITES commodities, alcohol and all other licensable
commodities cannot be processed under the simplified
declaration procedure.
 Documents Required for Imports
1. Bill of Lading
2. Certificate of Origin
3. Certificate of Origin Form A: Required for
imports of Beer from India
4. Commercial Invoices
5. Dangerous Goods Certification
Flow chart for the process
DISTRIBUTION
 Overseas Manufactures Domestic Manufacturers

General Distributor
(Exporters, Japanese
arms of foreign
manufacturers, domestic
manufacturers)

Primary Wholesalers

Secondary Wholesalers