Geography and demographics

Capital : Tokyo
Location : East Asia. Japan is an archipelago in the Pacific Ocean, made up of 6852 islands with 4 main islands. The country is over 3000 kilometres long from north to south.
Surface area : 378 km2, around 70% of which is mountainous.

Climate

Japan has a very varied climate. At Sapporo, on the northern island Hokkaido, the summer is warm and the winters are long, cold and snowy. Tokyo, in the centre of the largest island, has fairly mild winters with little snowfall, hot and humid summers, and a rainy season from June to mid-July. Okinawa in the south has a subtropical climate. The Japanese archipelago is often hit by typhoons, especially in summer.

Source : Japan Meteorological Agency

Total population : 127.74 million (2008)
Source : Ministry of Internal Affairs and Communications Statistics Bureau
www.stat.go.jp/english/index.htm

Politics

Government : Constitutional monarchy
Emperor : Akihito (2008)
Prime Minister : Yasuo Fukuda (2008)

Japan is a constitutional monarchy, therefore the emperor is the head of state. Executive power belongs to the cabinet, which made up of the prime minister (elected by indirect universal suffrage) and other ministers chosen by the prime minister. Legislative power belongs to the two-chamber parliament : a chamber of representatives (Shugi-in) of 480 members elected by universal suffrage for a 4 year period, and a chamber of councellors (Sangi-in) of 242 members elected in the same way for 6 years, half of them changed every 3 years. Judicial power belongs to the tribunals.

Constitution de Japon

The current constitution is "Nipponkokukenpo", adopted on 3rd May 1947. Its three main principles are popular sovereignty, pacifism and human rights. The controversial Article 9 states that Japan does not have an army, however there is an unofficial army which is called the Self Defence Force.

Regions

Japan is divided into 47 departments and 1804 communities. There are three different types of community (depending on the number of inhabitants) : 782 cities (shi) with more than 50 000 inhabitants, 827 towns (cho, machi) with more than 8 000 inhabitants and 195 villages (son, mura). The larger cities are divided into districts (ku). Tokyo has 23 autonomous districts.

Main cities

Tokyo : 8.7 million inhabitants
Yokohama : 3.6m
Osaka : 2.6m
Nagoya : 2.2m
Sapporo : 1.9m
Kobe : 1.5m
Kyoto : 1.5m
Fukuoka : 1.4m
(2008)
Source : City of Yokohama

Economy

Currency : JPY (yen)
Exchange rate : 168 yen / euro (2008)
GDP : 516 billion yen (2007)
Source : Cabinet Office, Government of Japan http://www.cao.go.jp/index-e.html

Growth rate in 2007 : 1.6% Source : Nikkei Inc
Working population : 67.48 million (2008) Source : Statistics Bureau
Unemployment rate : 4% (2008) Source : Statistics Bureau

Exported products : Cars (15%), semiconductors (6.7%), steel (4.6%)
Main exporters : US, China, South Korea, Taiwan, Hong Kong
Main importers : China, US, Saudi Arabia
Exports in 2007 : 83 931 400 million yen
Imports in 2007 : 73 135 900 million yet
Source : Ministry of Finance Japan
http://www.customs.go.jp/toukei/info/index_e.htm

Tourism

Policy
There are many more Japanese that travel abroad than tourists who come to Japan. In 2007, the number of visitors was around 8.35m , 5.95m of whom were tourists, whereas the number of Japanese tourists abroad was 17.29m. In order to redress the balance, the development minister introduced a special programme in 2007 to promote tourism.

Facts and figures
Total number of Japanese travellers abroad in 2007 : 17 295 000

Source : Japan Tourism Marketing Co.
http://www.tourism.jp/english/

Japanese tourists in France by region in 2007.

 Source : Japan Tourism Marketing Co.
http://www.tourism.jp/english/

Number of visitors to Japan in 2007

 Source : Japanese National Tourism Office
http://www.tourisme-japon.fr/

Winegrowing

Total surface area : 18 600 hectares
Annual production (2007) : 209 100 tonnes
Wholesale price (July – October 2007) : 665 yens / kg of grapes
Grapes exported (2007) : 362 tonnes, 413.66m yen 
Grapes imported (2007) : 8069 tonnes, 1 938.24m yen

Production is declining and the ageing population of winegrowers is having trouble finding successors. In 2007, the annual production was 1400 tonnes less than in 2006.

Regions

The two adjoining departments near the slopes of Mount Fuji represent 40% of Japan's annual production.
- Yamanishi (west of Tokyo) has 4080 hectares of vineyards producing on average 51 400 tonnes of grapes mainly of the Koshu variety.
- Nagano (west of Yamanishi) has an average annual production of 30 700 tonnes.

Source : Ministry of Agriculture, Forestry and Fisheries
http://www.maff.go.jp/e/index.html
Ministry of Finance Japan
http://www.customs.go.jp/toukei/info/index_e.htm

Destination of the grapes

In Japan, 80% of grapes grown are sold as food, 10% are used for making wine and 10% are used in the food industry, for making sweets, jam etc. This is the opposite of the general worldwide pattern, where 80% of grapes are used for making wine.

Source : Wikipedia

Three main Japanese grape varieties

In Japan, the same grape varieties are used both for eating and for making wine. Because of this, Japanese grapes are rounder and more sugary than European varieties.

Koshu : A white-fleshed variety that has been cultivated for more than 1000 years.

Muscat Berry A : A red variety created in 1927.

Kyoho : This variety , known as the "king of grapes", is the most widely cultivated in Japan. It is sugary and delicate and is mainly used for "eating" grapes.

Source : Association of Nippon’s Wine Lovers　
http://www.jp-wine.com/

(Koshu - around 4%)

Source : Ministry of Agriculture, Forestry and Fisheries
http://www.maff.go.jp/e/index.html

Production History

There are two legends about Koshu, Japan's most famous grape. The first is that in 718 a monk was carrying Koshu grapes with him when he was inspired to build the Daizen-ji temple. He built the temple and grew vines there. The second is that in 1186 a man called Amemiya Kageyu found a wild vine in the mountains and planted it. After 5 years he harvested wonderful grapes from this vine, and so he planted it all over the village.
It was many years before the grapes were used to make wine. In 1870 Mr Yamada and Mr Takuma founded the first cellar at Kofu (Yamanashi) and in 1874 they created around 900 litres of white wine and 1800 litres of red wine. This is the first recorded wine made in Japan.
In 1877, a wine business was started and two men (Mr Takano and Mr Tsuchiya) were sent to France to learn about winegrowing. In 1879, having finished their studies, they returned to Japan and started to make wine with Koshu grapes : they succeeded in producing 5400 litres of wine.
In 1891, Mr Kawakami, known as the "father of Japanese wine", planted the first vines at Niigata and created several Japanese hybrid varieties. In 1927, he created the hybrid "Muscat Berry A", which today produces 17000 tonnes of grapes in Japan, 2000 of which are used for red wine.
It was only after the Osaka World Fair in 1970 that wine became more popular. With increasing westernisation, its popularity grew, and Japanese wine production developed rapidly.

Source : Association of Nippon’s Wine Lovers　
http://www.jp-wine.com/

Production Trends

After the Second World War, wine really took off in Japan as an effect of westernisation. Its popularity peaked in 1998. Since then it has declined steadily - by 55% between 1998 and 2006.

Source : Yamanashi-ken Wine Center
http://www.yitc.go.jp/wine/

In 2006, 653 550 hl of wine were produced.

Source: National Tax Agency
http://www.nta.go.jp/

Wine represents justs 0.74% off all alcohol drinks produced.

Happoshu = Malt beer
Shochu = Distilled alcohol
Mirin = Rice wine for cooking

Source: National Tax Agency
http://www.nta.go.jp/

Japanese Wineries

Wineries can be found all over Japan but especially in Yamanashi, the cradle of Japanese wine, as well as Hokkaido, Yamagata and Nagano, which all produce high quality wine. Japanese wines go with western food as well as Japanese.

Members of the "Japan Wineries Association" number 79 in Yamanashi, 25 in Nagano, 11 in Yamagata and 11 in Hokkaido. But it is estimated that there are more than 90 wineries in Yamanashi alone.

Source : Japan Wineries Association  http://www.winery.or.jp/Statistics/shipment.html

Source: National Tax Agency
http://www.nta.go.jp/

Japan's most famous wineries

Mercian
The largest wine business in Japan, Mercian is over 100 years old. The company was originally called "Dai Nippon Budoshu gaisha" and was Japan's first ever wine business, founded in 1877.
In 1996, when the Japanese were beginning to discover the health benefits of polyphenols, Mercian launched "Bon Rouge", a polyphenol-rich wine. In keeping with current fashion, they are now launching a natural wine without additives.
The brand "Château de Mercian" which is produced in Katsunuma (Yamanashi), has won several awards in international competitions.
Mercian owns three wineries : one in Yamanashi, one in California and one in Bordeaux. Bottling (at which point the wines are blended with imported wines) takes place at Kanagawa.

Mercian corporation  http://www.mercian.co.jp/e/index.html

Suntory
Suntory launched their first red wine in 1907. In 1936 they started to cultivate wines in Yamanashi in collaboration with Mr Kawakami and produced the red wine "Tomi" from European grape varieties.
In 1983, Suntory bought the Château Lagrange in Bordeaux and under their management the wines have had an internationally recognised renaissance.

Suntory Limited http://www.suntory.co.jp/

Kikkoman
The largest producer of soy sauce, Kikkoman was founded in 1917 and started to produce wine in 1964. The company owns two large wineries in Yamanashi and Nagano.

MANNS WINE CO. , LTD http://www.kikkoman.co.jp/manns/

Asahi
The number one producer of beer and other drinks in Japan. In 2002, Asahi bought a winery founded in Yamanashi in 1947 and created "Saint Neige" with the European varieties Cabernet, Sauvignon and Semillon.

ASAHI BREWERIES,LTD. http://www.asahibeer.co.jp/english/

Sapporo
A large beer company founded in 1869, which also produces wine. Sapporo owns two wineries, in Yamanashi and Okayama.

Sapporo Breweries Ltd. http://www.sapporobeer.jp/english/index.html

Japanese Grape Varieties

Red
- Muscat Berry A : a hybrid created in 1927 by Mr Kawakami. The wine is dark, rounded and fruity.
- Black Queen : also created by Mr Kawakami in 1927. The wine is purple, full-bodied and acidic.

White
- Koshu : the speciality of Katsunuma, a city in the Yamanashi region. This is Japan's symbolic grape. The aroma and flavour are subtle and calm.

Other Varieties

Red
- Merlot
- Cabernet Sauvignon
- Pinot Noir
- Zweigeltrebe : cultivated in Hokkaido

White
- Chardonnay
- Seibel
- Muller-Thurgau
- Kerner
- Riesling
- Semillon

New Hybrids

Red
- Suntory noir : cultivated by Suntory. The wine is dark and rich.
- Kai noir : created in Yamanashi in 1990, a cross between Black Queen and Cabernet Sauvignon. The wine is very dark.
- Kiyomi : created from Seibel in Hokkaido
- Yama Sauvignon : a cross of Yamabudo and Cabernet Sauvignon created in 1990 at the Yamanashi university.

White
- Riesling Lion, Riesling Fort : crosses between Riesling and Japanese varieties.
- Shinano Riesling : a Riesling-Chardonnay hybrid created by Kikkoman.
- Kai Blanc : created in 1991 in a laboratory in Yamanashi from a cross between Koshu and Pinot Blanc. The wine is acidic and fruity.

Source : Association of Nippon’s Wine Lovers　
http://www.jp-wine.com/

Japan Wineries Association
http://www.winery.or.jp/

Wine as Medicine

Some pharmacies sell wine as a tonic.

Source : Wikipedia

AOC

Japan has not yet adopted the AOC system, but some regions, for example Yamanashi and Nagano have begun to apply a similar system in order to maintain quality standards.

Source : Wikipedia

Competitions

As the quality of Japanese wine continues to improve, Yamanashi now organise a yearly national wine competition in order to promote native Japanese grape varieties. From small winemakers to large companies, everyone competes to produce the best quality wine.

Source : Japan Wine Compétition http://www.jwine.jp/

Oenology

In 2007, the Yamanashi university awarded oenology degrees for the first time, to 7 winemakers. The degree is modelled on that of Bordeaux university, to stimulate the wine industry in Yamanashi.

Source : University of Yamanashi http://www.yamanashi.ac.jp/english/index.html

Export

In 2007, Japan exported 3 386.8 hl of wine (around 237.42 million yen or 1.41 million euros) : 26.34 hl of sparkling wine (10.42m yen or 62 017 euros), 3 137.41 hl of bottled wine (221.79m yen or 1.32m euros) and 223.05 hl of wine in bulk (5.2m yen or 30 964 euros).

Source : Ministry of Finance Japan
http://www.customs.go.jp/toukei/info/index_e.htm

Source : Ministry of Finance Japan
http://www.customs.go.jp/toukei/info/index_e.htm

Currently, Japanese winegrowers, especially those from Yamanashi, are making efforts to promote the exportation of white wine from Koshu grapes to Europe.

2007 wine imports by volume : 1 666 643 hectolitres

- Sparkling wine : 207 132 hectolitres
- Bottled wine : 1 199 462 hectolitres
- Wine in bulk : 260 050 hectolitres

2007 wine imports by value : 145 265.29 million yen (864.67m euros)

- Sparkling wine : 42 832.23m yen (254.95m euros)  
- Bottled wine : 98 714.63m yen (587.59m euros)
- Wine in bulk : 3 718.43m yen (22.13m euros)

Source : Ministry of Finance Japan
http://www.customs.go.jp/toukei/info/index_e.htm

Import figures were very high in 1998 thanks to the red wine boom following the discovery of the health benefits of polyphenols. After this peak, the volume of exports stabilised where as the value has risen steadily since 2000. This shows that the Japanese are developing a taste for higher quality wines.

Sparkling wine

Imports of sparkling wine have also risen. In 2007, Japan imported 207132 hectolitres of wine for 42 832.22m yen (254.95m euros). According to the economic review Fuji Sankei Business, the increased export figures are due to its popularity with women, who are attracted to sparkling wine because it is elegant and goes well with food. Champagne has also been very successful, despite its daunting price, after distributors had the idea of selling it in half bottles to make it more affordable.

Source : Ministry of Finance Japan
http://www.customs.go.jp/toukei/info/index_e.htm

Suppliers

France has long been Japan's number one importer and in 2007, France supplied 38.6% of imports in volume and 66.1% in value.

Source : Ministry of Finance Japan
http://www.customs.go.jp/toukei/info/index_e.htm

New World Wines

Even though New World wines are not yet very popular in Japan, imports are increasing gradually, especially of Australian wine.

Source : Ministry of Finance Japan
http://www.customs.go.jp/toukei/info/index_e.htm

French Wine Imports

2007 imports of French wine by volume : 643 364 hectolitres

- Sparkling wine : 98 983 hectolitres
- Bottled wine : 526 117 hectolitres
- Wine in bulk : 18 264 hectolitres

2007 imports of French wine by value : 96 062.39m yen (571.80m euros)

- Sparkling wine : 35 695.93m yen (212.48m euros)
- Bottled wine : 59 673.12m yen (355.19m euros)
- Wine in bulk : 693.34m yen (4.13m euros)

Overall, import volumes of French wine have remained stable after the peak of 1998, whereas their value has risen steadily ever since 2000.

Source : Ministry of Finance Japan
http://www.customs.go.jp/toukei/info/index_e.htm

Looking at 2007 month by month, there is a peak in November thanks to Beaujolais Nouveau. 19.85% of French wines imported during the year were imported in November.

Source : Ministry of Finance Japan
http://www.customs.go.jp/toukei/info/index_e.htm

Almost 50% of all Beaujolais Nouveau produced is exported to Japan. The arrival of Beaujolais Nouveau is a big event each year, even in Japan where fashions change frequently. Media coverage, the craze for polyphenols and the pride of being the first to taste the new wine (Tokyo is 8 hours ahead of Paris) are all contributing factors to its success.
8 million bottles were imported in 2007, as opposed to 10 million in 2004. Despite this drop, the figure is still very high. The Japanese currently have a taste for the more complex and aromatic Beaujolais Nouveau.

Wine Importers

- Japanese wineries.
Mercian, Suntory, Kikkoman, Asahi and Sapporo all import wine. Mercian, Japan's biggest wine producer, is also the largest importer. The company works with 16 French wineries (6 in Bordeaux, 2 in Languedoc-Roussillon, 2 in Champagne, 4 in Burgundy, 1 in the Loire Valley and 1 in Côtes de Rhône). Suntory bought Château Lagrange in Bordeaux in 1983. In addition, the company works with 9 French wineries (2 in Bordeaux, 1 in Languedoc-Roussillon, 1 in Champagne, 3 in Burgundy, 1 in the Loire Valley and 1 in Côtes de Rhône). The other Japanese wineries also work with lots of French wineries, especially in Bordeaux, Burgundy and Champagne.

Mercian corporation http://www.mercian.co.jp/e/index.html
Suntory Limited http://www.suntory.co.jp/

- Wholesalers
In Japan there are many small, medium and large wine wholesalers. They sell wine to department stores, supermarkets, off-licences, hotels and restaurants.

- Foreign food supermarkets
Supermarkets which import foreign food also import foreign wine. For example, the big supermarket chain "Seijo Ishii" imports around 2000 types of wine from all over the world.

SEIJO ISHII CO., LTD. http://www.seijoishii.co.jp/index.html

Regulation of alcohol import and sales

Import licences

There is no limit on alcohol imports, but importers and exporters must have a licence. There are 4 types of licence :

- Wholesaler's licence for importing alcohol. You can import alcohol and sell it wholesale, but you cannot sell Japanese alcohol or sell retail.
- Wholesaler's licence. You can sell alcohol wholesale but you cannot import any alcohol yourself or sell retail.
- General alcohol retail licence. You can retail alcohol but you cannot sell wholesale. However you can import alcohol yourself.
- Licence to sell alcohol by delivery. You can sell alcohol by delivery, but only domestic products whose delivery volume was less than 30 000 hl the previous year, or imported products. Since April 2006, there is no limit for imported products.

Import Process

1. Customs

2. To obtain a licence, importers must request one from the "Zeimusho" (Tax office) and there are certain conditions.

3. The bottle must be marked with the:
- Type of alcohol
- Percentage of alcohol
- Volume of the bottle
- Production process
- Quality
The tickets are validated by the Tax Office. To be classed "organic", they must fulfil the requirements of the JAS (Japanese Agricultural Standard).

4. Imports must be declared to the Ministry of Health, Employment and Social Security.

5. Customs authorises imports on the basis of a statement including the bill, freight bill and insurance policy.

Source : JETRO
www.jetro.go.jp

Customs rates 2008

Customs duties : 80 yen / litres (2006)
Consumption tax : 5% (2008)

Source : Ministry of Finance Japan
http://www.customs.go.jp/english/index.htm

Wine Distributors

Wineries
You can buy wine from the larger wineries. Companies like Mercian sell wine online.

Sapporo
http://www.sapporobeer.jp/wine/products/index.html 
Suntory
http://www.suntory.co.jp/wine/
Mercian
http://www.mercian.co.jp/
Asahi
http://www.asahibeer.co.jp/products/wine/

Department Stores
Department stores like Takashimaya and Mitsukoshi are very popular in Japan. In the food hall there is a wine section selling many different wines. There are sometimes experts on hand to help shoppers choose wine. They also sell wine online.

Takashimaya
http://www.takashimaya.co.jp/
Mitsukoshi
http://www.mitsukoshi.co.jp/index.html

Supermarkets
Most supermarkets have a small wine section selling various sorts of wine. It depends on the size of the shop, but there is not usually a lot of choice.

Itoyokado
http://www.itoyokado.jp/

Convenience Stores
These corner shops can be found everywhere in Japan and are open 24/7. Thanks to the liberalisation of alcohol laws, you can now buy various types of wine in most convenience stores, although the choice is very limited.

Seven Eleven
http://www.sej.co.jp/index.html

Wine Merchants
Many wine merchants are finding it hard to compete with supermarkets and convenience stores following the relaxation of alcohol laws. Certain retailers only sell wine that they have imported directly.

Wine Delivery Service
In 2008, 'Rakuten', the biggest online shopping site in Japan, had in stock 36 577 bottles of Bordeaux, 38 969 of Burgundy, 11 065 of Champagne and 21 940 from other regions.

Rakuten
http://www.rakuten.co.jp/

Wine Importers
Certain importers sell directly to consumers.

EX-wine
http://www.exwine.net/

Hotels and Restaurants
There are many French and Italian restaurants in Japan selling good quality wine : some of them have a sommelier.

'Izakaya'
Japan's most popular type of restaurant, an 'izakaya' is a sort of inn, very popular with businessmen and students, where you can order small dishes and drink all sorts of alcohol - beer, cocktails, shochu, sake, whisky. Reasonably priced table wine is usually available. The largest chain, 'Shirakiya', sells 9 different wines, including one French wine, 'J. P. Chenet Cabernet Syrah'.

MONTEROZA INC.
http://www.monteroza.co.jp/

The most widely consumed alcoholic drink in Japan is beer.

Happoshu : Malt beer
Shochu : Japanese spirit
Mirin : Rice wine for cooking

Beer consumption per person was 25.87 litres in 2006. If you add Happoshu (cheaper than beer and very popular), that figure rises to 37.74. Wine represents no more than 2.58% of alcohol consumed in Japan.

Source : National Tax Agency
www.nta.go.jp
Ministry of Internal Affairs and Communications Statistics Bureau
www.stat.go.jp/english/index.htm

Wine Consumption

Consumption Trends

Wine consumption started to rise in the 70s, after the Osaka World Fair, thanks to the importation of alcohol, and continued to grow steadily until 1998. Its development has been marked by several consumption peaks.

Source : National Tax Agency
http://www.nta.go.jp/
Yamanashi-ken Wine Center
http://www.yitc.go.jp/wine/

Peaks
1972 : Liberalisation of wine importation laws in 1970 and advertising by the large wineries
1978 : Launch of '1000 yen' wine, strength of the yen, lowering of customs
1981 : Launch of wine in 1.8 litre bottles
1987 : Success of Beaujolais Nouveau
1995 : Cheaper red wines and the discovery of the health benefits of polyphenols
1996 : New World wines are introduced in Japan
1998 : The peak of popularity for red wine

Current Consumption

Wine consumption in 2006 : 2 286 540 hectolitres
Consumption per person : 1.79 litres
Consumption per person (over 20 years of age) : 2.2 litres

Since 1998, alcohol consumption, including wine, has decreased.

Source : National Tax Agency
http://www.nta.go.jp/

Regions

Almost half of all wine consumed in Japan is consumed in the Kanto region : 26% is consumed in Tokyo itself.

Source :National Tax Agency http://www.nta.go.jp/

The region with the highest wine consumption per person is Yamanishi, the cradle of Japanese wine, where around 40% of wine is produced. Other production regions such as Nagano and Hokkaido also have high consumption rates. Apart from these, wine is mainly consumed in large cities such as Tokyo, Kyoto and Osaka.

Source : National Tax Agency
http://www.nta.go.jp/
Ministry of Internal Affairs and Communications Statistics Bureau
http://www.stat.go.jp/english/index.htm

Trends

1. Wine is especially popular among women, who are attracted by its elegance and refinement, whereas men prefer stronger alcohol.
2. The market is highly reactive to the recommendations of purchasing advisors and rapidly changing fashions.
3. The Japanese are very demanding when it comes to quality and like to have a lot of information about the wine. It is seen as a complex product, and it is difficult to make the right choice when buying, due to the language barrier and different grape varieties and regions.

· Sopexa Japon
http://www.e-sopexa.com/local-offices/japan.html

· Japan Wines and Spirits Importers Association
http://www.youshu-yunyu.org/english/index.html

· Japanese Sommeliers Association
http://www.sommelier.jp/

· Association of Nippon’s Wine Lovers
http://www.jp-wine.com/

· Japan Wineries Association
http://www.winery.or.jp/

· Yamanashi-ken Wine Center
http://www.yitc.go.jp/wine/

· WORLD FINE WINES
http://www.worldfinewines.com/index.htm

FOODEX JAPAN

Foodex is an important annual exhibition of food and drink products from Japan and abroad.

http://www.jma.or.jp/FOODEX/