The Container Problem

Why are Returnable Bottles Decreasing?

The percentage of returnable bottles in beverage containers is going down. The percentage of containers represented by the traditional 1.8-l isshobin returnable bottle dropped from 75% in 1989 (based on liquid volume) to 47% in 1998. Beer bottles are also on the decrease.

* There are reasons for the decline in returnable bottle use:

Reasons for the Decline of the Returnable

Consumer * More convenient, faster-paced lifestyles * Expansion of the "disposable" lifestyle

Distribution * Decrease in home delivery * Effective sales

Manufacturer * Inexpensive one-use materials * Development of glass alternatives * Marketing through container design * Increase in cost of returnable containers (increase in price differential with one-way containers)

* Returnable Bottle Use at Takara Shuzo

Taking a pro-returnable stance, we introduced a new 720 ml returnable containers, which we used for our new "Arack" shochu product in FY99. Furthermore, in order to maintain a returnable bottle system, we worked toward a strong infrastructure for returnables, participated in the establishment of a bottle washing company and a P-box rental company. However, the decline of returnables is inevitable in light of the lifestyles of our consumers and the economics involved. In order to expand the use of returnables, we all need to create and support a social system that goes beyond support by consumers.

720 ml returnable bottle