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Japanese Wine Market. Sebastian Teunissen Haas School of Business University of California, Berkeley. My Background. Undergraduate degree in Economics and Mathematics, University of Guelph, Canada Graduate Degree in Economics, Duke University, USA

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Japanese Wine Market

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japanese wine market

Japanese Wine Market

Sebastian Teunissen

Haas School of Business

University of California, Berkeley

my background
My Background
  • Undergraduate degree in Economics and Mathematics, University of Guelph, Canada
  • Graduate Degree in Economics, Duke University, USA
  • Assistant Secretary, Commercial Policy, Department of Finance, Papua New Guinea
  • Faculty, Fuqua School of Business, Duke University
  • Director, Far East Management Study Program, Wake Forest University
  • General Manager, Kinoshita International, Osaka, Japan
  • Consultant to wine industry
  • Director, Vinhos Barbeito (Madeira)
  • Faculty, Haas School of Business, University of California, Berkeley, USA

This is the text box

  • History
  • 2
  • Madeira wine
  • Product Recall
  • 3
  • 4
  • 5
  • 6
consumer patterns
Consumer Patterns
  • The princess of the business world is the young Japanese working woman. They are fueling the continuing wine boom. They love Italian food and love eating it with Italian wines.
  • Men drink sake or whisky if they have money, cheaper shochu spirits if they are hard up. Cocktails are usually shochu-based. They make fortunes for restaurants and bars.
consumer patterns7
Consumer Patterns
  • Wine consumption almost tripled in the 4 years ending in 1997.
  • In 1997 alone wine consumption increased by 32.1%
  • In the first half of 1998 wine imports tripled over the same period in 1997.
  • In 1998 consumption of red wine exceeded that of white wine for the first time ever.
the red wine boom
The Red Wine Boom
  • “The appetite for red wine really took off in Japan in 1997, after a number of television shows played up the advantages of red wine.”
  • “A new TV series called “Sommelier” features a teen-age heartthrob playing the lead role of a wine expert.”

CNN 1/1/1999

  • “In the past, French wine had a luxurious image, while Californian wine was thought to be cheap, in terms of price and taste. But, people are looking at other labels now, including those from California.”
  • Japanese imports of California wine rose 242 % in 1998
california wines find growing market in japan
California wines find growing market in Japan

1999 CNN story on the wine boom in Japan

california wines find growing market in japan12
California wines find growing market in Japan

1999 CNN story on the wine boom in Japan


Wine (off-trade) in Japan

Euromonitor 2003


Beer (off-trade) in Japan

Euromonitor 2003


Spirit (off-trade) in Japan

Euromonitor 2003

convenience stores
Convenience Stores

Number of Stores – End of Fiscal Year 2001

  • Seven- Eleven 9,116 stores
  • Lawson 7,734
  • FamilyMart 5,287
  • C&S 4,721
  • Daily Yamazaki 2,281
  • Mini Stop 1,395
  • Am/pm 1,096
  • Seicomart 970
convenience stores26
Convenience Stores

New Store Openings in 2002 (estimated % increase)

  • Seven- Eleven 5.3 %
  • Lawson 0.7
  • FamilyMart 0.2
  • C&S 5.2
  • Daily Yamazaki -5.2
  • Mini Stop 3.3
  • Am/pm 3.4
  • Seicomart 0.8
a fad driven market
A Fad Driven Market
  • Japan's well-heeled consumer market is often fueled by fad. Steven Tolliver, the Japanese-speaking marketing executive of Spain's Codorniu Group, likes to point to the "tiramisu tsunami" of a decade ago. Top women's magazines featured stories on the Italian dessert, and before you could say "chocolate" it was featured in every trendy restaurant, supermarket and fast food chain in the country. Once universally available, it lost its exclusive allure and sales fell.
1999 white wine revival
1999 White Wine Revival
  • How come the white wine revival? Tokyo wine guru Sandra Shoji said that chemists at Suntory Laboratory put e-coli into a lot of sample dishes, along with whisky, vodka, sake, beer, antibiotics, gin, red wine, white wine. Voila! The white wine killed more bacteria, faster. In the humid heat of a Japanese summer when raw fish attracts bacteria, this is a powerful selling tool. Drink white and protect your tummy.
  • Overnight, red is out, white is in. Get on an aircraft these days taking off from Narita and every Japanese on board will be drinking white. Last month, it was red. (Think of the problems for the purchasing officers of large airlines, scrabbling to get their hands on palatable whites! Think of the opportunities for nimble winemakers and merchants!).
Food Sanitation Law http://www.jetro.go.jp/se/e/standards_regulation/food2003mar-e.pdf

On May 1, 2003 a ¥10.48 per 750ml bottle increase in duty


Wine consumption is increasing significantly in China, according to information from the China Vintage Industry Association (CVIA). Statistics show that Chinese people consumed 390 million liters of wine in 2001, with per capita consumption reaching 0.27 liters. China's wine output rose by 30 percent between 1994 and 2000. It produced 300,000 tons in 2001, a rise of 19 percent on a yearly basis. China also imports about 50,000 tons of wine annually. Although wine production in the country dates back more than 2,000 years, wine consumption in the past was very low. Influenced by traditional habits and customs, and mode of production, Chinese people greatly prefer distilled wine and millet wine. But these days more and more Chinese people were drinking wine,a result of rapid economic development, marked improvement in people's living standards and people's awareness of health needs, said Geng Zhaolin, a CVIA senior executive. Yantai city in east China's Shandong Province is the only Chinese wine city named by the Office International De La Vigne etdu Vin. However the managers of several restaurants told Xinhua that the number of people drinking white wine had dropped drastically compared with the past. At present, China has about 450 wineries. Among them, 10 are capable of producing more than 10,000 tons each annually. Geng said China's annual wine output was expected to reach 500,000 tons by 2005.