Sake Industry & Export.

Sake Labels: Terms and Indications
Philipp Maas Philipp Maas

Sake Labels: Terms and Indications

The terms on a sake label are defined by the Japanese tax laws and include mandatory as well as optional elements:

  • Mandatory elements on sake labels are ingredients, production date, storage/serving hints, country of origin, producer name, producer address, container volume, sake indication, alcohol percentage, and underage drinking warnings.

  • Among the optional sake label elements are various production-related terms like “Namazake” (unpasteurized sake), the region of origin, and the storage/aging period.

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Sake Brewing Experiences - Become a Sake Brewer
Philipp Maas Philipp Maas

Sake Brewing Experiences - Become a Sake Brewer

A new side of sake brewery tourism is sake brewing experiences, which are offered by a couple of sake breweries across the country:

  • Obata Shuzo’s Gakkogura on Sado Island is a sustainable microbrewery that allows a small group of students to brew their own sake tank in the course of one week.

  • In the mountainous region of Nagano, the Kurabito Stay is a two-nights three-days sake making experience, which will let you stay in a renovated guest house directly on-premise.

  • Two sake breweries near Tokyo host small groups of sake enthusiasts in a compact one-night two-days sake making experience during the sake brewing season.

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Japanese Sake Cost Breakdown
Philipp Maas Philipp Maas

Japanese Sake Cost Breakdown

Japanese sake is still strongly marketed with cost-based pricing, as compared to distilled spirits where branding influences the price largely:

  • The production costs of sake are closely related to the polishing ratio of the rice and the used sake rice. Over 70% of the ingredient cost are associated with sake rice. Some other factors like the pressing method or fermentation starter method play also a role in the sake production cost.

  • A Junmai sake 720ml bottle can be purchased in Japan for around 1,000-2,000 yen. More expensive Junmai Daiginjo sells for over 5,000 yen in Japan.

  • Exported sake in the USA is about 2 to 3 times the Japanese retail price. For example, a Kubota Manju Junmai Daiginjo goes over the counter in San Francisco for 59.98 USD per 720ml bottle.

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White and Private Label Sake
Philipp Maas Philipp Maas

White and Private Label Sake

Beyond the classical reselling of existing sake products, white or private label sake might be a viable option to consider going forward. One can expect higher profit margins when promoted correctly. It can be a cost-effective way of owning your sake brand and testing before eventually making higher investments.

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Sake Production in Japan
Philipp Maas Philipp Maas

Sake Production in Japan

Summary of the sake production statistics from 2019:

  • In total over 1,168 sake breweries produced sake in Japan.

  • Niigata has the most sake breweries (85 regional breweries).

  • The total volume of produced sake was 340,496 kl (down 10.8% from the previous year).

  • 148,832 kl (down 6.9% from the previous year) premium sake was brewed.

  • Within the premium sake category, the share of Junmai sake (without the addition of distilled alcohol) is increasing.

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Sake Export Market Overview 2020
Philipp Maas Philipp Maas

Sake Export Market Overview 2020

Summary of the Japanese sake export statistics in 2020:

  • The total exports of Japanese alcohol were 71,091 million JPY (CAGR 14.8 %) in 2020.

  • The biggest categories are Japanese whiskey and sake.

  • The Japanese sake exports almost tripled from 2010 to 2020 with an annual export value of 24,141 million JPY (CAGR 11%).

  • The top 3 export markets for Japanese sake are Hong Kong, China, and the USA (per value).

  • In 2020 the average export value per liter exceeded for the first time 1000 JPY with an average of 1109 JPY per liter exported Japanese sake.

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