Published on January 13, 2026
The expansion, which coincides with a simultaneous entry into the United States, introduces Thai consumers to the Yatsushiro Shiranuigura distillery’s craftsmanship through two distinct product lines: the craft gin Yatsushiro Shiranuigura Yatsu Boshi and the export-exclusive shochu brand Yatsu.
Strategically, this expansion allows the Japanese giant to exploit two key growth drivers in the Southeast Asian kingdom: Thailand’s maturing cocktail culture and the continuing popularity of Japanese gastronomy.
The main goal of this launch is to highlight the local character of Kumamoto Prefecture. Mercian is leading with Yatsushiro Shiranuigura Yatsu Boshi (43% ABV), a “Precious Citrus Gin.” This gin stands out from the many London Dry gins on the market because it uses local Japanese citrus fruits instead of the standard varieties found in most other gins.
The gin features Shiranui (a sweet decopon mandarin), Banpeiyu (a massive pomelo variety), and Aoyuzu (green yuzu). The result is a spirit designed to be complex enough for neat sipping but robust enough to stand out in a gin and tonic – a critical versatility for Thailand’s premium on-premise sector.
The citrus-driven gin features mandarin orange, pomelo and green yuzu [Image: Yatsushiro Distillery]
The decision to identify Thailand as a Tier-1 expansion market is driven by several factors, beginning with the enduring power of the “J-Wave” in gastronomy. Thailand continues to have one of the highest concentrations of Japanese restaurants in Southeast Asia.
As Thai consumers become more sophisticated diners, the demand for authentic beverage pairings has moved beyond standard beer and sake listings. Mercian is betting that high-quality shochu and Japanese craft gin are the natural next steps for this demographic.
This culinary trend runs parallel to a broader resurgence in the Kingdom’s bar scene. Post-pandemic, Bangkok has aggressively reclaimed its status as a global cocktail capital, driving resilient growth in the “premium white spirits” category—particularly gin.
According to industry data, while mass-market volumes fluctuate, the appetite for craft and provenance-led spirits remains strong in urban centers.
Crucially, this market opportunity is underpinned by a major structural pivot. In late 2025, Kirin established a new regional headquarters, Kirin Brewery Southeast Asia Sdn. Bhd., in Kuala Lumpur. By shifting strategic oversight from Singapore to a dedicated regional hub, Kirin aims to execute faster, more localized decision-making, transitioning from a more distant exporter model to an active, on-the-ground brand manager.
This launch does not happen in a vacuum. It builds upon Kirin’s existing regional efforts, most notably the push for Fuji Japanese Whisky, which the company designated as one of its “three flagship pillars” for global growth in late 2025.
By adding Mercian’s craft portfolio to a stable that already includes Fuji Whisky and the Four Pillars Gin brand (owned via their Australian subsidiary, Lion), Kirin is rapidly transforming from a “beer-first” company into a comprehensive “lifestyle beverage” player in Southeast Asia.
Mercian’s aggressive moves must be viewed against the backdrop of a challenging domestic reality – Japan’s major brewers are facing what some analysts call an “existential crisis” at home.
With a rapidly aging population and a younger generation that drinks significantly less alcohol than their parents, the domestic Japanese beer market has been contracting by approximately 1–2% annually for decades. To survive, Japan’s “Big Four” (Kirin, Asahi, Suntory, Sapporo) have had no choice but to look overseas for growth.
For Kirin, this has manifested in a series of high-profile acquisitions in the craft beer space, most notably the acquisition of Lion in Australia and New Belgium Brewing in the United States. These investments allowed Kirin to capture value in mature craft beer markets where consumers are willing to pay a premium—a strategy they are now replicating with Mercian’s spirits.
However, Kirin’s overseas journey has not been without significant stumbling blocks. While the Mercian launch represents a carefully controlled, premium brand entry, Kirin is simultaneously grappling with its investment in India’s Bira 91 (B9 Beverages).
Kirin, which holds a significant stake (approx. 20%) in the Indian craft brewer, has faced challenges as the Indian brand navigates deepening financial distress. Bira 91 reported a net loss of approximately 7.48 billion rupees (approx. USD 83.87 million) in FY2024, plagued by operational disruptions and rising debt.
The contrast between the two markets is stark. In Thailand, Kirin is building a brand from the ground up with full control over the “premium” narrative through its own subsidiary. In India, they acted as a minority investor in a high-volume, capital-intensive price war that has proven difficult to sustain.
The potential restructuring or re-evaluation of the Bira 91 investment suggests a maturing of Kirin’s global strategy: a willingness to cut losses or pivot in high-risk ventures while doubling down on high-margin, brand-led expansions like Mercian’s push into Thailand.
Mercian’s entry serves as a case study in how heritage brands can pivot to capture modern market segments. By leveraging the “Craft Japan” halo effect and aligning with Thailand’s culinary and cocktail boom, Mercian elevates its strategy from a simple export operation to the delivery of a distinct cultural experience.
As distribution rolls out across Bangkok’s top-tier venues this quarter, the industry will be watching closely. If Mercian can succeed where others have stalled, it may prove that the future of Japanese alcohol exports lies not in volume, but in value.
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