Suntory Lost Case Against Asahi Over Non-Alcoholic Beer

A dispute over non-alcoholic beer was settled at Tokyo District Court, October 29, as the court turned down Suntory's plea. It's a battle for hegemony over the fast-growing market of non-alcoholic beer in Japan between Suntory (All Free) and Asahi (Dry Zero).

Suntory patented its All Free in October, 2013, assigning extract component, sugar content, pH level for a non-alcoholic drink "tasting like beer". Asahi had "renewed" their own non-alcoholic beer "Dry Zero"  in September that year and Suntory had it analyzed to find Dry Zero's contents within the scope of their patent.

Suntory then asked Asahi to review the contents of Dry Zero; Asahi insisted the Suntory patent void. Both exchanged views verbally as well as in writing but failed to reach an agreement. Early this year Suntory resolved to file a suit against Asahi.

Kirin Beer was the first to market a non-alcoholic beer, "Kirin Free", 2009, and found customers among truck drivers and women. Other beer breweries followed suit and the market fast zoomed from 5 million cases (20 large bottles to a case) in 2009 to 16.4 cases in 2014.

Non-alcoholic beer is tax-free and high in profitability. Further, the beer market is shrinking as youths are drifting away from alcoholic drinks.

Both had once disputed over naming but reached a compromise. The current dispute over the contents is likely to affect business as court verdicts often weigh heavily on the sales.

Suntory declared in a communique that they would now turn to the Intellectual Property High Court for further legal action, appealing that the company can not  pretermit their intellectual property forever violated.

Suntory and Asahi are racing for the leadership in the non-alcoholic beer market and the customers are watching with interest which will come out winner - Suntory All Free or Asahi Dry Zero.