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Japan’s biggest brewer Asahi trying to attract sober Generation Z

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Mariko Oi,Business reporter

Getty Images People drinking beer at a year-end party at a pub in Tokyo.Getty Images

Nommunication has traditionally played an important role in Japanese businesses

For thousands of years, alcohol has been used as a social lubricant. In Japan, it is known as nommunication – a combination of the Japanese word for drink, nomu, and communication.

The idea is that drinking alcohol creates a more relaxed environment.

Businesses have even tackled difficult issues in pubs, rather than conference rooms.

The late former chairman of then-bankrupt Japan Airlines, Kazuo Inamori, explained in 2012 how he used beer to get his employees to open up.

But there is now a whole new generation that chooses not to drink as much. Multiple studies in the UK, the US and Australia show that people from Gen Z are more sober than their parents and grandparents.

In Japan, faced with declining alcohol tax revenues, the authorities even arranged a national competition, named Sake Viva!, in an effort to reverse the trend in 2022.

The sober generation does not only affect Japan’s tax revenues, it also offers a whole new challenge for businesses that make and sell alcohol.

Getty Images Atsushi Katsuki, chief executive officer of Asahi Group Holdings.Getty Images

Atsushi Katsuki, chief executive officer of Asahi Group Holdings

“We have realised that younger people are increasingly choosing not to drink as much alcohol,” said Atsushi Katsuki, the chief executive officer of Asahi Group Holdings.

However, Japan’s biggest brewer sees this as both a risk and an opportunity.

“Our firm is quite unique because while the majority of our sales comes from beer and alcoholic beverages, we also have the capability to produce non-alcoholic beverages or soft drinks which gives us a competitive advantage,” he said.

Asahi is also pushing its non-alcoholic and what it refers to as low alcohol offerings – such as alcohol-free beer or drinks with less than 3.5% alcohol – outside of its home market.

“By 2030, we want to double the share of beverages with zero or low alcohol to 20% of our overall beverage sales,” he said.

They are already popular in its home market. Mr Katsuki said that alcohol-free beers account for 10% of Asahi’s beverages sales in Japan as people avoid drink driving.

But the Japanese market is shrinking because of an ageing population and falling birth rates.

“Alcoholic beverages sales in Japan will continue to decline because we cannot go against the shrinking population, which means we cannot expect the Japanese market to grow massively,” he said.

That means Asahi’s main growth opportunities are overseas, and it has been expanding rapidly abroad for 15 years. Today, more than half of its sales are generated outside Japan.

One major market the firm has yet to tap is the US. The question is: can alcohol-free beer get as popular there as it is in Japan?

Vincent Ball Vincent Ball and Samantha Benaitis.Vincent Ball

Vincent Ball and Samantha Benaitis choose not to drink much alcohol

Vincent Ball and Samantha Benaitis are a 20-year-old couple who live in Jacksonville, Florida. In the US, laws relating to alcohol vary in different states but the minimum age for purchasing it is 21 across the country.

While those above the age of 40 in their families enjoy boozy nights, the Gen Zers do not drink much alcohol.

“I think drinking in moderation is perfectly fine,” said Vincent, adding that he would enjoy having a beer after work but “not crazy parties”.

“I just find other things more enjoyable, and I don’t find drinking very important, especially in party settings.”

For Samantha, it was a lesson learnt from seeing others drinking heavily.

“I definitely was influenced by everybody around me in my life getting way too drunk or hammered, and making mistakes that impact them for a lifetime rather than just for that night.”

So instead, Samantha drinks kombucha – a fermented black or green tea, which is often flavoured – because “if you’re just drinking water, I’ve been asked many times, oh, are you really just drinking water?”

To avoid peer pressure, would they drink alcohol-free beer? Their answer was a resounding “no”.

Layla Neal Josie Ball.Layla Neal

Josie Ball, 18, says she understands why some people drink heavily

Asked how Asahi would tackle new, non-drinking, consumers like Samantha and Vincent, Mr Katsuki said the firm has learned an important lesson.

“We realised that we have been producing non-alcoholic beverages from the point of view of alcohol drinkers,” he said, admitting that Asahi has not yet been particularly successful in appealing to non-drinkers.

“We’ve been collecting data in Japan by asking those who cannot or choose not to drink alcohol to understand what kind of products they want.”

In a sign of uphill battle drinks companies face as they try to win over Gen Z, Vincent’s younger sister, Josie, explained how she feels about people getting drunk.

“I definitely understand people who overdrink. Would I do it myself? I hope not because people kind of tend to make a fool of themselves when they overdrink.”

If you, or someone you know, has been affected by issues with alcohol, the BBC Action Line has details of organisations which may be able to help.



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Keir Starmer hails historic Labour victory as Conservatives sink to worst-ever result

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Sir Keir Starmer has declared a historic Labour victory in Britain’s general election, urging the country to embrace “the sunlight of hope” as he headed for a huge House of Commons majority of about 180 seats.

Outgoing prime minister Rishi Sunak conceded his Conservative party had suffered a devastating defeat, as it sank to its worst-ever result. The Tory vote was decimated by Nigel Farage’s populist Reform UK.

Labour is set to win 413 House of Commons seats out of 650, according to a Financial Times projection that takes into account the 13 seats yet to declare as of 7.25am. The Tories were projected to slump to 122.

But Starmer will formally become Britain’s new prime minister knowing that Labour’s public support is shallow.

The party was set to win power with 34 per cent of the national vote, the lowest-ever winning share and only 10 percentage points higher than the Conservatives.

For most of the election campaign, polls had put Labour 20 points ahead.

“We can look forward again,” Starmer told party activists at London’s Tate Modern at 5am. “Walk into the morning — the sunlight of hope, pale at first, but getting stronger through the day.”

Labour last won an election under Sir Tony Blair in 2005.

In a highly symbolic moment, former prime minister Liz Truss was among the big Tory names to lose their seats. Her 49-day premiership, and the economic havoc it spawned, contributed to the Conservative meltdown.

The party’s performance is a personal triumph for the former chief prosecutor, who became Labour leader in 2020 after the party’s worst postwar election defeat. His victory is similar in scale to Blair’s 1997 Labour landslide.

But the party’s success was delivered on a vote share that was a much smaller share than the 40 per cent secured by leftwing Labour leader Jeremy Corbyn in his 2017 general election defeat.

Labour won scores of seats because of the rise of Reform UK, which split the rightwing vote, punishing the Conservatives under the UK’s first past the post electoral system.

“This looks more like an election the Conservatives have lost than one Labour have won,” pollster Sir John Curtice told the BBC.

Speaking at his count in Clacton, Reform’s leader Nigel Farage said his party would come second in swaths of seats as well as securing a “bridgehead” in parliament, adding: “This is the start of something that is going to stun all of you.”

Turnout was on course to be about 60 per cent, close to a record low, suggesting general public dissatisfaction with mainstream politics.

Starmer admitted that he faced an immediate task of reconnecting mainstream politics to voters. “The fight for trust is the battle that defines our age,” he said.

As of 7am, Labour had secured 34 per cent of the vote, Conservatives 24 per cent, Reform 14 per cent and Liberal Democrats 12 per cent.

By that time Labour had won 409 seats, the Conservatives 117, the Lib Dems 70 and Reform four.

The centrist Lib Dems’ tally smashed the party’s modern-era 62-seat record in 2005, as it made big gains in the Tory “blue wall” of well-heeled seats in the south of England.

The Scottish National party was behind Labour in Scotland with just eight seats, delivering a hammer blow to the party’s dream of securing independence.

The results confirmed the overwhelming sentiment reported by candidates from all parties that Britain wanted “change”. Outgoing chancellor Jeremy Hunt, who narrowly held his own Surrey seat, called it a “crushing defeat”.

But Hunt added that Starmer and shadow chancellor Rachel Reeves were “decent people and committed public servants who have changed the Labour party for the better”. He urged them to reform the NHS, adding Labour might be better placed than the Tories to achieve that goal.

Grant Shapps, defence secretary; Penny Mordaunt, leader of the House of Commons; Gillian Keegan, education secretary; Sir Jacob Rees-Mogg, former cabinet minister; and Alex Chalk, justice secretary, were among the high-profile Tory casualties on a night of Tory desolation.

Corbyn held his Islington North seat, standing as an independent, while George Galloway, the leftwing pro-Palestinian MP for Rochdale, lost his seat to Labour.

But Labour lost two seats — including one held by shadow cabinet member Jonathan Ashworth — to pro-Palestinian independent candidates, an indication of how Starmer’s position on the Israel-Hamas war has hurt his party among many Muslim voters.

The Green party also won all its four target seats in the general election, quadrupling the number of MPs it will send to Westminster and bringing its total in line with Reform UK.

Under 14 years of Conservative rule, five prime ministers presided over economic austerity, Brexit, a pandemic and an energy price shock, while frequently engaging in bouts of civil war. “We forgot a fundamental rule of politics,” Shapps said. “People don’t vote for divided parties.”

Starmer becomes only the seventh Labour prime minister in the party’s history, and his victory is the first since 2005 for the centre-left party. Labour last ousted the Tories from power in 1997.

He will move into 10 Downing Street on Friday and immediately form his cabinet, with an instruction to ministers to quickly deliver policies to jolt Britain out of its low-growth torpor.

An exit poll forecasting the Labour landslide indicated that Starmer’s avowedly pro-business agenda had paid off, as Labour bucked international political trends. Far-right parties have performed strongly in recent European and French elections, while Donald Trump is leading in polls for the US presidential race.

Chancellor-in-waiting Reeves has said she hopes investors will now see the UK as a “safe haven”.

Starmer has promised to work with business to stimulate growth, with an agenda that includes planning reform and state investment in green technology. Labour will also pursue a traditional agenda of reforms to worker rights.

For Sunak, was a personal disaster. He chose to hold an early election — against the advice of his campaign chief Isaac Levido — and ran an error-strewn six-week attempt to turn around his party’s fortunes.

The party’s projected total of 122 seats is lower than the party’s worst-ever result of 156 in 1906. Starmer’s expected seat haul is close to the 418 seats won by Tony Blair in his 1997 landslide victory.

Defeats for Tory cabinet members including Shapps and Mordaunt has reduced the cast list of potential contenders for the party leadership if, as expected, Sunak stands down.



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Democratic donors say they won’t finance party until he drops out

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U.S. President Joe Biden walks to deliver remarks after the U.S. Supreme Court ruled on former U.S. President and Republican presidential candidate Donald Trump’s bid for immunity from federal prosecution for 2020 election subversion, at the White House in Washington, U.S., July 1, 2024. 

Elizabeth Frantz | Reuters

President Joe Biden is facing an uprising from some his own party’s wealthy donors, including an heiress to the Disney family fortune, who say they will no longer fund the Democratic Party until Biden steps down following his disastrous debate performance.

Abigail Disney, the granddaughter to Roy O. Disney, who cofounded The Walt Disney Company, told CNBC on Thursday that she plans to withhold donations to the party she has funded for years until Biden drops out. The president has said he has no plans to withdraw from the race, despite calls for him to do so.

“I intend to stop any contributions to the party unless and until they replace Biden at the top of the ticket.  This is realism, not disrespect. Biden is a good man and has served his country admirably, but the stakes are far too high,” Abigail Disney said in a lengthy statement to CNBC. “If Biden does not step down the Democrats will lose. Of that I am absolutely certain. The consequences for the loss will be genuinely dire.”

The Democratic Party at large has been in a state of panic since Biden struggled to perform in the debate against former President Donald Trump last week. Rep. Lloyd Doggett, D-Texas, called on Biden to drop out of the race, suggesting the debate performance proved to voters that the president is incapable of taking on Trump and unable to overcome his distance in the polls.

A New York Times/Sienna College poll taken after the debate showed Biden behind Trump by 6 percentage points among likely voters.

Representatives for the Biden campaign did not return requests for comment.

Abigail Disney has been a longtime supporter of Democrats. She gave $50,000 to the Jane Fonda Climate political action committee in April, according to a Federal Election Commission filing. The PAC has given $35,000 to Democrats running for congressional seats, according to data from OpenSecrets.

Disney gave $150,000 in 2014 to Planned Parenthood Votes, a PAC affiliated with the health care nonprofit, according to OpenSecrets. That PAC this election cycle has spent over $400,000 supporting Democrats, including $26,000 for Biden.

Disney pointed to Vice President Kamala Harris as a solid alternative to Biden, arguing she’d be able to defeat Trump.

“We have an excellent Vice President.  If Democrats would tolerate any of her perceived shortcomings even one tenth as much as they have tolerated Biden’s (and let’s not kid ourselves about where race and gender figure in that inequity) and if Democrats can find a way to stop quibbling and rally around her, we can win this election by a lot,” Disney said.

And she’s not the only one pausing gifts until Biden steps down. Gideon Stein, the president of the Moriah Fund, said he’s decided to pause planned donations of $3.5 million, earmarked for nonprofits and political organizations aligned with the presidential race.

“Joe Biden has been a very effective president, but unless he steps aside my family and I are pausing on more than $3 million in planned donations to nonprofits and political organizations aligned with the presidential race, with the exception of some down ballot work,” Stein said. “Virtually every major donor I’ve talked to believes that we need a new candidate in order to defeat Donald Trump.”

Karla Jurvetson, a philanthropist and major Democratic donor, hinted as recently as Tuesday in a private donor call that she agrees with the sentiment on pausing donations until Biden steps down and could end up making such move, according to a person familiar with her remarks. The person was granted anonymity in order to speak freely about a private conversation.

A spokesman for Jurvetson did not return repeated requests for comment.

Jurvetson is among the top 50 donors this cycle across the country, donating over $5 million to Democrats, according to OpenSecrets. She’s given over $200,000 to the Biden Victory Fund this cycle, according to FEC records.

Jurvetson gave over $30 million to Democrats in 2020, according to the data.



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Civics are becoming a 21st-century business skill

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The Fourth of July is a day typically filled with food, festivities, and fireworks in the U.S., as our nation celebrates the passage of the Declaration of Independence in 1776. But this day commemorates something else, too.

Our celebration of Independence Day is an opportunity to reflect on our country—the progress we have made and the work we must still do to strengthen our democracy and communities as we look toward the future.

Like a successful business, democracy only works when all of its components function well. The very skills that formed this great experiment are the same skills that spark the inspiration and innovation necessary for breakthrough ideas and continued economic growth. In other words, civics is a 21st-century business skill.

Critical thinking, problem-solving, negotiation, curiosity, adaptability, shared risk-taking, and other so-called “soft skills” are increasingly called “durable skills” because there’s nothing soft about them. In fact, a recent LinkedIn survey found that nine out of 10 global executives say they are more important than ever in the workplace.

Collaboration and shared risk-taking

in government, facilitating and making decisions requires people to work together. Whether it’s running a polling station on Election Day or serving on a municipal committee, the path to getting things done includes working with others who may hold opinions and ideas that are quite different from your own.

While our neighborhoods, houses of worship, schools, and other places where we gather with others may be homogenous, in the workplace, we are likely to encounter people who are different from us.

When team members with varied opinions and perspectives can work respectfully and effectively together, organizations win. Companies and teams adept in durable skills can be expected to deliver greater employee morale, improved product service or quality, and increased innovation, to name a few.

Defusing conflict and solving problems

Failure to understand how our government works is preventing people from finding common ground on basic issues. This lack of knowledge foments division, frustration, and ultimately, incivility and an inability to communicate effectively with others, especially those who see the world differently.

Most Americans believe the nation’s tone is uncivil (58%). However, when people have a shared understanding of organizations and processes, they can listen to others’ arguments and make strong rationales of their own. In doing so, they can better use reason to compromise and manage conflict.

Honing negotiation skills

Think about the way legislation is often crafted: Someone has an idea for change. Others may disagree. In an ideal world, they discuss their differences, find common ground, and draft legislation made stronger by a range of viewpoints.

Increasingly, managers are concerned about their team members’ unwillingness to compromise and inability to sit together and come to an agreement. By many accounts, our founding fathers held wildly differing opinions and argued fiercely. However, they were able to reach compromises that became our nation’s foundation.

Training critical thinking

While sometimes met with chagrin, jury duty is one of the most important ways citizens participate in our system of governance.

Being a good juror requires weighing evidence, questioning our own preconceptions, and asking good questions. These are the same critical thinking skills necessary in making key organizational decisions.

Building leaders

Understanding and participating in how our government is run teaches us how to operate in complex systems, navigate change, and use good judgment and reason to reach a goal. In short, civic engagement builds leaders who can apply those skills in myriad ways, including in the workplace.

Americans are eager for employers to help build bridges, create healthier discourse, and strengthen cooperation in the communities they serve. Eighty-two percent of Americans believe that businesses can play a role in bringing our country together, and nearly 75% of voters agree that businesses have a responsibility to protect our economic system and national environment.

Businesses can take small yet meaningful steps to boost civic engagement. For example, employers may offer their employees time off to serve as nonpartisan poll workers during local, state, and national elections, addressing a critical shortage across America. Or they can support employees selected for jury service by providing resources to help them prepare for their duties. They can also provide educational experiences that reintroduce employees to civics basics, empowering them to learn more about how our government works and how they can meaningfully participate. The U.S. Chamber of Commerce Foundation runs one of several such initiatives that help employers enhance civic skills within their teams.

As we prepare to celebrate Independence Day, now is the time for the business community to commit to elevating civics education and skills in the workplace.

More must-read commentary published by Fortune:

The opinions expressed in Fortune.com commentary pieces are solely the views of their authors and do not necessarily reflect the opinions and beliefs of Fortune.



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