The 'Sober Curious' Lifestyle: Choosing Not to Drink Alcohol. Smart Drinking Co., Ltd.'s Approach to "People Who Don't/Can't Drink" (Part 1)

As times change, so too does the relationship with alcohol. In Western countries, a mindset called "sobercurious" (a portmanteau of "sober" and "curious") is spreading, particularly among young people. This means more people are choosing not to drink alcohol, even without health concerns. Within Japan too, the number of people who don't drink or can't drink alcohol is on the rise. This likely reflects growing dissatisfaction with traditional, uniform approaches to enjoying alcohol, alongside a desire among more people to enjoy comfortable moments at their own pace, driven by diversifying lifestyles.

Amidst this, in December 2020, Asahi Breweries, Ltd. proposed "Smart Drinking®" to realize a society where drinkers and non-drinkers mutually respect each other. Dentsu Digital Inc. endorsed this philosophy and has supported Asahi Beer's initiatives. Following this journey, in January 2022, they established "Smart Drinking Co., Ltd.", a joint venture between Asahi Beer and Dentsu Digital Inc. Focusing on people who don't drink or can't drink, they disseminate various information and opened "SUMADORI-BAR SHIBUYA" in Shibuya – a bar where you can enjoy yourself without drinking alcohol.

To mark Smart Drinking Co., Ltd.'s first anniversary, we interviewed Mizuho Kajiura, President and CEO, and Miharu Hamada of Dentsu Digital Inc., a founding member. In Part 1, we discuss the concept of "Smart Drinking®" and the background behind establishing the new company.

Advocating "Smart Drinking®" where drinkers and non-drinkers mutually respect each other

Q. As a precursor to establishing Smart Drinking Co., Ltd., Asahi Breweries proposed "Smart Drinking®" in December 2020. What is the concept behind this?

Kajiura: For over 130 years since its founding, Asahi Breweries has made alcoholic beverages its core business. We expanded our share of the domestic beer market with our flagship product, Asahi Super Dry, and actively pursued overseas expansion. However, we faced the challenge that the alcoholic beverage category itself might struggle to grow going forward. Indeed, our 2022 survey estimated that out of approximately 90 million people aged 20 to 70, about 50 million either cannot drink alcohol or choose not to. This means that non-drinkers/those unable to drink constitute over half the domestic population. We believed that by offering products and services tailored to these individuals, we could open up a new market.

The concept we adopted for this was "Smart Drinking®," an approach already gaining traction overseas. This philosophy involves enjoying alcohol responsibly, selecting alcohol content suited to one's constitution and physical condition, and choosing flavors based on personal preference. We believed that by promoting this style in Japan, not only drinkers but also the remaining 50 million who do not or cannot drink could become our customers.

Thus, on December 10, 2020, Asahi Breweries issued the "Smart Drinking Declaration." Specific measures include disclosing the pure alcohol content (in grams) of major alcoholic beverages sold domestically on our website. We also aim to increase the proportion of products with an alcohol content of 3.5% or less and non-alcoholic products to 20% of our portfolio by 2025.

That said, creating new products and services targeting those who don't drink or can't drink is also necessary. However, Asahi Beer is fundamentally an alcoholic beverage manufacturer, so most employees basically like alcohol and drink it. It was in this context that I met Mr. Hamada, who was seconded from Dentsu Digital Inc. to Asahi Beer at the time. We discussed how digital marketing could reach new target audiences, and learned that Dentsu Digital Inc. also has many employees who do not drink alcohol. This led to the idea: "Why don't we build a company together?" About a year after the "Smart Drinking Declaration," in January 2022, Asahi Breweries and Dentsu Digital Inc. established the joint venture company, Smart Drinking Co., Ltd.

The Strong Commitment to "Smart Drinking®" Embodied in the New Company's Establishment

Q. Rather than just creating products and services for those who don't drink or can't drink, starting a company outright seems like a bold challenge. Why did you choose to establish a new company rather than pursue this as a new venture within Asahi Breweries?

Kajiura: Asahi Beer is a large company. While it excels at dynamic moves, decision-making inevitably takes time. We judged that establishing a smaller company would enhance agility. Outsourcing was an option, but we believed launching a company would foster a stronger sense of responsibility toward the business.

Hamada: Plus, Asahi Beer has "beer" in its name, right? I thought some people who don't drink or can't drink alcohol might turn away just hearing "Asahi Beer has launched a new product."

Actually, even though I was seconded to Asahi Beer, I can't drink beer myself. That's precisely why I understand the feelings of those who don't drink or can't drink. While there are many advantages to pursuing this business as Asahi Beer, having the company name too prominent would likely be a significant disadvantage for a product targeting non-drinkers or those who can't drink. Therefore, we removed the Asahi Beer name and chose a company name that avoids words like "beer" that evoke alcohol.

Q. What was your position at Asahi Beer when you founded Smart Drinking Co., Ltd.? Were you originally in a department focused on creating new businesses?

Kajiura: At the time, I was the head of the New Value Creation Promotion Department at Asahi Beer. It's a department tasked with creating flagship products on par with Super Dry, challenging everything. Before that, I had experience in sales, marketing, and international marketing. During that time, I was also stationed in Indonesia for about two years.

In Indonesia, about 90% of the population is Muslim, so most people don't drink alcohol. The remaining 10% could drink, but in social settings, nobody actually does. People who enjoy alcohol are a minority, which was a real discovery for me – "So this kind of world exists too." Having had this experience, coupled with my assignment to the New Value Creation Promotion Department, I think it helped the idea of "expanding the non-alcoholic category for those who don't drink or can't drink, and making it a new business pillar" gain traction quite smoothly.

Q. Mr. Hamada, what led you to join this project?

Hamada: I was seconded to Asahi Breweries from Dentsu Digital Inc. After about two years, I requested a transfer to the New Value Creation Promotion Department. That's where I met Mr. Kajiura, the department head, and I really wanted to work with him on new business development.

Q. Asahi Beer already sold non-alcoholic beer, and the group includes companies like Asahi Beverage Co., Ltd. that handle various beverages. How was the decision to deliberately launch a new company received within Asahi Beer?

Kajiura: Asahi Beer's management recognized the significance of Smart Drinking Co., Ltd. and responded positively, saying, "This is definitely a challenge worth taking on." Fundamentally, Smart Drinking Co., Ltd. is a company with a very strong message. The very nature of the business—marketing specifically to those who don't drink or can't drink—serves as a powerful advertisement for Asahi Beer. Establishing a store and office in Shibuya also generated a lot of surprise. We even had people from other companies remark, "You're serious about this, huh?" (laughs). I believe the very act of Asahi Beer establishing a new joint venture and investing sends a message: Asahi Beer will prioritize Smart Drinking® moving forward. It also signals their stance that Asahi Beer itself is undergoing significant change in step with the times.

Legally, over half of the domestic population who can drink alcohol now choose not to drink or are unable to drink, demanding a major business transformation from alcohol manufacturers. Amidst this, Smart Drinking Co., Ltd. is responding to the trend and further advancing business development by launching a "new company," not as "Asahi Beer's new business division." In the second part, we'll explore the impact that the founding of Smart Drinking Co., Ltd. has had internally, its current state after one year, and future prospects.