Voluntary Report - public distribution

**Date:** 1/21/2004

**GAIN Report Number:** JA4501

JA4501

**Japan**

**Market Development Reports**

**Food Business Line**

###### Periodic Press Translations from ATO Tokyo

**2004**

**Approved by:**

![](media/image1.wmf)Kevin Sage-EL, Deputy Director

ATO Tokyo

**Prepared by:**

Akiko Matsuyoshi, Marketing Clerk

**Report Highlights:**

From America's largest overseas food and agricultural export market as
translated from Japan's mass media and food industry news. This issue
includes: *Seiyu* will begin using *Walmart's* "Retail Link" data
inventory and tracking system, in mid-December; Major supermarket
operators are increasing the number of part-time workers they employ in
order to cut personnel costs; *WDI Corporation* of Japan plans to open
the first overseas branch of New York's famous "Grand Central Oyster Bar
and Restaurant in Tokyo; The Hilton hotel chain plans to open a
super-luxury Conrad hotel in Tokyo; Turkey and turkey meat sales
gradually expanding in Japan and; *Lawson* plans to ban the use of all
artificial seasonings that are required to be labeled under the Food
Sanitation Law.

Includes PSD Changes: No

Includes Trade Matrix: No

Unscheduled Report

Tokyo ATO \[JA2\]

\[JA\]

**Food Business Line**
![](media/image2.png){width="0.7423611111111111in"
height="0.6381944444444444in"}

> *Periodic Press Translations from ATO Tokyo Vol IV, Issue 41 Nov.
> 15-30, 2003*

####### Retail/Wholesale

-   *Seiyu* will begin using "Retail Link", the data inventory and
    tracking system, in mid-December, in an effort to lower its
    procurement costs. "Retail Link", is the largest private-sector
    sales/inventory data system in the world developed by *Wal-Mart*.
    The system is designed to provide sales/inventory information via
    the internet to *Seiyu*'s supermarket outlets, its distribution
    centers and to its suppliers to prevent a shortage of goods at
    *Seiyu's* outlets and assist in the company's sales promotion
    planning. It is expected to take two to three years for the system
    to cover all of *Seiyu*'s 400 supermarkets nationwide. (a 11/16)

-   Major supermarket operators are increasing the number of part-time
    workers they employ in order to cut personnel costs. Since many of
    them are female housewives, the companies also plan to utilize their
    knowledge and get suggestions on what would better meet the needs of
    local customers and ways to improve customer service. *Aeon* even
    plans to promote part-timers to managerial positions. (a 11/16)

-   Total sales of department stores and supermarkets in October 2003
    increased due in part to a sales campaign related to the two
    successful professional baseball teams. According to the *Japan
    Chain Store Association*, total sales of supermarkets in October
    increased by 0.6% for the first time in 16 months on a same-store
    basis compared to the same month last year. Food sales also
    increased by 0.1%. According to the *Japan Department Store
    Association*, total sales of department stores in October increased
    by 0.2% for the first time in 19 months on a same-store basis
    compared to the same month last year. Food sales declined for 0.2%.
    (a 11/26)

-   *Aeon*'s profit for the fiscal year 2004 is likely to expand rapidly
    thanks to its recent acquisition of failed supermarket chain
    operator, *Mycal*. It is also expected to narrow the profit gap
    between itself and *Ito-Yokado*, the leading Japanese retailer. (a
    11/29)

######## Food Service

-   *Starbucks Coffee Japan* plans to cut the number of new store
    openings this fiscal year to 70 from the original plan for 80 new
    stores. *Starbucks Coffee Japan* also plans to put more strength in
    renovating present stores. (b 11/25)

-   *WDI Corporation* of Japan plans to open the first overseas branch
    of "Grand Central Oyster Bar and Restaurant," a famous oyster
    restaurant founded in New York City. The locations of the original
    and new restaurant will have something in common. The original is
    located in New York's Grand Central Station and the new restaurant
    will be located inside the new station complex in Shinagawa, Tokyo.
    (b 11/25)

-   According to the *Japan Food Service Association*, total sales of
    its member outlets in October 2003 increased by 0.8% for the first
    time in four months on an all-store basis compared to the same month
    last year. While there was a decline in sales on a same-store basis,
    the total number of outlets increased by 3.4% and the number of
    customers and unit customer expenditure both saw an increase. (a
    11/26)

-   The Hilton hotel chain plans to open a super-luxury Conrad hotel in
    the Tokyo's business building complex located in Shiodome in spring
    2005, making its first inroad into the Japanese market. (b 11/29)

######## Food Processing/New Products/Market Trends

-   With Japan's frozen vegetable imports still affected by the series
    of agricultural pesticide residue scandals that plagued Chinese
    frozen vegetables in recent years, the total quantity of imported
    frozen vegetables declined by 9.1% from January to September 2003
    compared to the same period last year. In part, it was due to a
    decline in fried potato imports that accounted for one-third of the
    total, reflecting the increased health-consciousness of consumers
    and the waning Japanese interest in fast foods. Overall, frozen
    vegetable imports from the U.S. declined by 10.9%, with its frozen
    potato imports declining by 13%. Imports from China also declined by
    18.3%, losing market share to Taiwan, New Zealand, and Thailand. (f
    11/20)

-   Turkey is gradually expanding its sales in Japan. *Tozai Sangyo
    Boeki*, a major turkey importer that holds 40% of the market, plans
    to introduce small-sized turkeys that could be prepared in smaller
    microwave ovens in Japanese households. *Dotour Coffee* also plans
    to introduce a new menu in its coffee shops using turkey meat
    beginning in December. Total imports of turkey increased by 34.9%
    between January and September 2003 compared to the historic low
    during the same period in 2002. (b 11/20)

-   According to the Ministry of Public Management, Home Affairs, Posts
    and Telecommunications, the consumer price index in October 2003
    went up for 0.1% for the first time in five and a half years
    compared to the same month in 2002. Also, the unemployment rate went
    up by 0.1% in October compared to the previous month, leveling off
    at 5.2%. (a 11/28)

######## Food Safety/Consumer Awareness

-   *Lawson* plans to ban the use of all artificial seasonings that are
    required to be labeled under the Food Sanitation Law, in about 160
    processed food items, such as *bento* lunch boxes, buns and noodles,
    by next March sold at its nationwide "Lawson" convenience stores.
    *Lawson* will ask about 110 major food processors and their
    subsidiaries to use natural seasonings that are classified as foods
    instead. Many other retailers have stopped using preservatives and
    artificial colorings, but *Lawson* will be the first to ban the use
    of artificial seasonings.

(a 11/24)

-   Convenience stores are strengthening food safety controls for their
    deli food products in an effort to prevent any more food safety
    scandals. For example, *Lawson* introduced a new food quality
    control division and quadrupling the size of its quality management
    staff. *Mini Stop* also plans to observe the factories in China more
    carefully, and *Daily Yamazaki* is also planning to do the same. (b
    11/25)

######## ATO/Cooperator/Competitor Activities/Trade Shows

-   *Village Cellars*, a catalog-sales oriented import wine company,
    held a tasting seminar on November 5 at ATO Tokyo's seminar room.
    North American wines such as Oregon wines were presented at the
    seminar and about 100 people attended the tasting. (Shokuryo Jyokai
    11/17)

** Sources **

\(a\) The Japan Economic Newspaper (b) The Nikkei Marketing Journal

\(c\) The Japan Food Journal (d) The Beverage & Food News Commentary

\(e\) The Japan Food News (f) The Food Industry News

DISCLAIMER - *Food Business Line* is derived from major Japanese news
wires, mass distribution press, and food industry newspapers and
magazines. Inclusion of an item in *Food Business Line* does not imply
agreement by USDA or U.S. Embassy/Tokyo; nor does USDA or U.S.
Embassy/Tokyo attest to the accuracy or completeness of the translation
of the news item. ATO Tokyo cannot further translate or send source
materials to users.