GM hiccups shaking breweries in Japan

By Yoke Har Lee

Two Japanese brewers, Kirin and Sapporo, this week announced plans to eliminate genetically modified organisms from their beer.

Their action follows advice to investors to avoid putting their money into companies whose earnings might depend on genetically modified products.

Kirin, the largest brewer in Japan, said that by 2001 it would stop using beer ingredients produced from genetically engineered corn.

Two other big Japanese brewers, Asahi and Suntory, were considering similar moves.

New Zealand's main brewer, Lion Nathan, in which Kirin holds a controlling stake, could not be contacted for comment.

The latest action by the two Japanese brewers follows global consumer pressure for food and beverage companies to keep GM ingredients out of their products.

Global consumer pressure is also causing investment analysts to rethink how the use of GM material might destroy product value instead of adding to it.

Deutsche Bank's US analyst Tim Ramsey downgraded the investment rating of seed company Pioneer Hi-Bred to a "sell," and downgraded the seed sector as a whole.

His view was that genetic modification had become a liability to companies. Modified seed was trading at a discount and a two-tier market for grain could develop.

Pioneer Hi-Bred is conducting maize trials in South Auckland.