Helping a Japanese Sake Company Enter the US Market

Sake has been deeply rooted into Japan’s culture for thousands of years. Originally seen as a mythological drink that allowed their all conquering hero, Susano to defeat the hydra-like monster Orochi, sake in Japan is not only seen as a gastronomic drink, but also used in the ceremonial aspects of Shintoism. Yet, what has been a bedrock staple of the Japanese identity in Japan has recently started experiencing shifts with younger generations and women showing a preference for different types of alcoholic beverages due to the import of foreign alcoholic beverages including spirits, beer, and wine. As a result Japanese preferences for sake have shifted to lighter, fruitier sake varieties and sparkling sake, aligning with global trends towards more diverse and accessible alcoholic beverages. Additionally, the craft sake movement is gaining momentum, with smaller breweries experimenting with unique flavors and brewing techniques, catering to a growing interest in artisanal and premium alcoholic experiences. This evolution reflects a broader trend in consumer preferences towards personalized and quality-driven drinking options. Given the vast domestic competition and market saturation, Japanese sake producers have been looking for ways to further expand their market share beyond the Japanese market and have started looking abroad.

In 2019, one of Japan’s largest sake producers, we’ll call them Fujita Kaisha, was looking for a way to expand their market share internationally. The company, one of the largest soft and alcoholic drink producers in the country, was competing with other producers such as Suntory Beverage & Co Ltd, Asahi Brewing, and Kirin Holdings. The problem facing Fujita Kaisha is that while demand for their beer and soft drinks domestically was strong, the market for Japanese sake, their premium product, was stagnating. The company had seen decreasing sales domestically due to the shift in consumer preferences. However, the company had noticed that Japanese culture and curiosity for gastronomy had been expanding around the world. Looking to the United States, the company decided that it would try to export some of the products that it had typically reserved for the domestic market and sell them in the United States as a way to test new waters.

When Fujita Kaisha came to Mir Meridian, our team quickly went to work on how to create a comprehensive strategy for the company to expand their sake brand internationally. Our team came up with a multi variable strategy that would include the following:

• Cultural Storytelling
• Strategic Partnerships
• Advertising in Tailored Channels

With this strategy, the Mir Meridian team went to work with Fujita Kaisha and started developing a Go-to-Market entry strategy for the company to enter the US market and then other international destinations.

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Storytelling

The first part of the strategy was to create a narrative around the high-quality world and meticulous nature of Japanese sake tradition. Our first output was to focus on the flagship product within the sake category for Fujita Kaisha. The reason for our selection is Junmai Ginjo’s status as the pinnacle of traditional Japanese brewing artistry. The very special sake typically commands a premium due to the exhaustive efforts behind its production. In our discussions with Fujita Kaisha, we understood why this sake was perfect for storytelling since the brewmasters at their Tokyo headquartered brewery used only the finest rice, polished to remove at least 40% of the outer layer. While some sake brewers would see this amount of polishing as pedantic, the brewmaster at Fujita Kaisha told us that such a process was indispensable in producing a purer, more refined flavor. On top of the grinding process, brewing was a meticulous labor of love, requiring precise temperature control, constant monitoring, and a deep understanding of fermentation nuances. The result of such attention to detail by the brewmasters ended in a sake that not only embodies the rich heritage of Japanese craftsmanship but also delivers an exquisite taste experience, making it highly valued among connoisseurs worldwide.

Focusing on these insights, Mir Meridian began creating a marketing campaign that leveraged storytelling to create marketing campaigns aimed at US consumers. The output of the campaign was outlined by our 

"Embrace the Essence of Tradition with Fujita Kaisha’s Junmai Ginjo”

This campaign was created to celebrate the exquisite craftsmanship behind Japan’s premium Junmai Ginjo sake. Highlighting the cultural traditions, meticulous attention to detail, and dedicated work effort, we invite connoisseurs and new enthusiasts alike to experience the pinnacle of sake quality. Through our exclusive tasting events, and educational content, we'll share the journey from rice field to glass, showcasing why our Junmai Ginjo is a luxurious embodiment of Japanese heritage and brewing excellence.

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The deployment of this campaign through online channels as well as traditional social media resulted in the United States market becoming more aware of Fujita Kaisha’s high-end product. However, in addition to storytelling about the product Fujita Kaisha also needed to create demand and buzz around their sake to have a successful strategy.

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Strategic Partnerships

As Mir Meridian and Fujita Kaisha deepened the collaboration around sake, Fujita Kaisha wanted to better understand what network and ecosystem design they would need to create in the United States in order to bolster and support the nascent campaign created with Mir Meridian. 

During the collaboration, Mir Meridian held a workshop with the leadership, procurement, marketing, and distribution teams at Fujita Kaisha to determine the relevant stakeholders, collaborators, and incentive loops that needed to be created in order for the Go-to-Market strategy to succeed.  As an output of the discussion, the joint team identified Distributors, local wine shops, Japanese restaurants, tasting menus, and educational events to be pivotal in creating consumer awareness for a new sake in the United States. The reasoning behind this is that distributors can position the sake in key markets where interest is high. Wine shops offer a direct retail channel, often hosting tastings that introduce consumers to the sake's unique qualities. Japanese restaurants provide the perfect culinary backdrop, enhancing the dining experience with sake pairings. Lastly, tasting menus, especially curated, offer an educational journey, fostering appreciation and buzz among enthusiasts eager to explore sophisticated flavors and the cultural depth of sake.

Given what we uncovered in the discussion we helped Fujita Kaisha implement the following roadmap for partnership success:

1. Partnership Development: Establish partnerships with key distributors specializing in premium alcoholic beverages. In the United States, Umami Mart, Japanese/East Asian Supermarkets, Whiskey retailers, and other merchants were identified to ensure widespread availability across major markets. Simultaneously, Fujita Kaisha collaborated with local wine shops, Sequoia and Takara Sake in San Francisco & Berkeley to create brewing collaborations, and Japanese restaurants that align with the sake's brand image for targeted promotions.
2. Education and Tasting Events: Fujita Kaisha created a budget within food focused trade shows to create tasting events and introduce consumers to the sake, focusing on its heritage, brewing process, and tasting profiles. This was in part also subsidized by the Japanese External Trade Organization (JETRO)
3. Restaurant Collaboration: Given the exclusivity of the product, Fujita Kaisha called on some of the best Japanese chefs in the United States and used their restaurants as exclusive places for having their sake.
4. Influencer and Sommelier Engagement: Mir Meridian created a campaign to Engage with sommeliers, chefs, and influencers within the food and beverage industry to create buzz around the sake. Encourage them to share their experiences and recommendations through social media and their professional networks

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Advertising in Tailored Channels

As a last part of Fujita Kaisha’s Go-to-Market strategy, the company wanted to prominently advertise their product in American gastronomy magazines. There was one problem, with all of the other marketing activities and costs quickly adding up, the company had a limited budget to pay for advertising. As a result, many of the traditional channels that the company would rely on to get their message across were prohibitively expensive. 

Given the constraints and importance of getting the message across, Mir Meridian went to work on bootstrapping an advertising effort that could get brand awareness without breaking the bank. The first step was to create bespoke advertising in two dedicated channels, the first was Wine Spectator  and the second was Food & Wine. Full page ads were run in conjunction with paid for articles that complimented the ads with stories focused on Japanese gastronomy or culture. While this action burned most of the budget for marketing, it did allow room for readers to see the sponsored content and relate it back to Fujita Kaisha’s sake brand.

With the remaining budget, Fujita Kaisha decided to create their own version of a magazine that could also bring awareness to Japanese gastronomy aficionados through a short magazine called Tokyo Yushoku Dining. This became one of the first international magazines dedicated entirely to the world of Japanese gastronomy, dining, and sake. With a focus on providing comprehensive insights, the magazine covers everything from sake production techniques and the latest industry trends to profiles of brewers and reviews of individual sake brands. Aimed at both sake enthusiasts and those new to the beverage, Tokyo Yushoku Dining serves as a bridge between Japan's traditional gastronomy and sake culture and the growing global interest in this unique beverage, offering readers an in-depth look at the art and science of sake brewing and consumption.

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Conclusion

Working with Fujita Kaisha was a project that allowed Mir Meridian to dive deep into Japanese culture and gastronomy. The project not only highlighted the shifting product perceptions of Japanese products in their domestic market, but also how a highly niche alcoholic beverage could enjoy a revival outside the borders of Japan. Through storytelling, strategic partnerships, and tailored advertising, Fujita Kaisha has started to develop a cult following in the United States. The magazine has since celebrated its 5th year in print and has worldwide subscribers, with new articles constantly being written about Japanese culture and gastronomy in far flung locations. In addition to the cult following, Fujita Kaisha grew distribution by 15% year on year and is currently increasing their margins in order to stave off the demand that their products hold. Mir Meridian is excited to work with Fujita Kaisha again in the future.