Required Report - Public distribution

**Date:** 7/10/2008

**GAIN Report Number:** JA8513

JA8513

**Japan**

**Market Development Reports**

**Japan Food Trends July**

**2008**

**Approved by:**

![](media/image1.wmf)Michael Conlon, Agricultural Trade Officer

Agricultural Trade Office, U.S. Embassy, Tokyo

**Prepared by:**

Sumio Thomas Aoki, Senior Marketing Specialist

**Report Highlights:**

Japan is becoming even more eco-friendly as efficiencies are generated
through new technology. Stories about carbon dioxide footprinting, e-car
battery, the battle of the yogurts, and calorie-free products are in
this issue of Japan Food Trends (JFT).

JFT communicates Japanese food and lifestyle trends that we hope will
help U.S. exporters to develop products and generate marketing ideas.

Includes PSD Changes: No

Includes Trade Matrix: No

Annual Report

Tokyo ATO \[JA2\]

\[JA\]

***Editor's Notes***

ATO enjoyed a visit from Dr. Richard Reich (Assistant Commissioner),
Peter Thornton (Assistant Dir. Int'l Marketing) and Scott Bissette
(Int'l Marketing Specialist) of NC Dept. of Ag. and Consumer Services,
who to our delight read beforehand and brought along the June issue of
Japan Food Trends.

Perhaps we are getting closer to the lifestyle of Star Trek than we
realize. There is no need to carry cash these days in Japan and perhaps
not even a photo ID. Cards or mobile phones take care of it all in
Japan. With these cards you can purchase just about anything including
all kinds of yogurts that might help your digestive system, improve your
complexion and more. But that's not all. Soon to come to supermarkets
will be e-battery charging stations for your electric automobiles and
snow stored vegetables. However, what may become more and more difficult
is to purchase calories.

**[Think Eco (Ecology)]{.underline}**

***Sapporo Beer to introduce 'carbon footprinting' labels*** The Daily
Yomiuri, June 20, 2008 p8

![](media/image2.wmf){width="1.3854166666666667in"
height="1.3333333333333333in"}Major beer manufacturer Sapporo Beer will
introduce a label for one of its products in 2009. The label will state
the amount of carbon dioxide emitted during the entire production and
disposal process. The calculation of CO~2~ emission is known as 'carbon
footprinting' and is a practice that will hopefully lead companies to
reduce CO~2~ emission.

According to Yomiuri, "(o)bservers said if such efforts take off it
would give consumers alternative criterion for choosing products in
addition to taste and price, such as taking into account climate
change."

***Aeon in talks on e-car battery chargers at malls*** The Daily
Yomiuri, June 22, 2008 p6

![](media/image3.wmf){width="1.3229166666666667in"
height="1.3645833333333333in"}

The largest supermarket operator in Japan, Aeon, is considering
installing electric car battery chargers at its malls. Affected by high
gasoline prices and a keener conscious of environmental issues,
automakers are planning to develop more e-cars. Supermarkets such as
Aeon will alleviate e-car owners' fear of electricity shortage
(presently, e-cars run only 200 kilometers per charge) if e-battery
chargers are set up throughout the country.

***Aeon to sell vegetables kept cold in snow*** The Daily Yomiuri, June
19, 2008 p9

You probably know that low temperatures activate the conversion of
starch in vegetables into sugar. Snow provides this low temperature
environment to increase sweetness in vegetables. Aeon will store in
their specially designed warehouse vegetables in snow at a low
temperature of 2 degrees Celsius.

**[Health]{.underline}**

***New Product Battle: Yogurt*** Nihon Keizai Shimbun, June 26, 2008,
p35

![](media/image4.wmf){width="1.1354166666666667in"
height="1.0729166666666667in"}Although the total sales of yogurts are
stable, those that offer health benefits continue to increase market
share. Yogurts that help balance intestinal functions are marketed to
women. Probia Yogurt: LG21 Aloe targets women by promoting beautiful
skin.

Three criteria, deliciousness, occasion, and price/appeal were used to
compare products. Deliciousness includes components such as taste, smell
and texture. Occasion includes breakfast, office snack and midnight
snack. In regards to price/appeal, 90 grams per cup is the most suitable
for women and health benefits attract consumers.

For your reference, 2005 total sales for the leading yogurt, Labre, were
US\$3.8 million\*. The predicted sales for 2008 are US\$114 million\*.

\*Exchange rate Yen 105/US\$

***Consumers have appetite for calorie-free products*** The Daily
Yomiuri, June 30, 2008, p8

Shelf-space of calorie-free products seems to continue to grow.
Calorie-free canned coffee, beer, carbonated drinks, and sports drinks,
and yogurts are a few examples that tout calorie-free on their label.

However, the labeling law for calorie-free is fuzzy. For some products,
a zero calorie label is acceptable by the government even though the
calorie level isn't strictly zero. This is because the "standard for a
drink is less than five kilocalories per 100 milliliters (100 grams).

Two issues come to mind. One, fuzzy labeling is tolerated right now
because the Japanese government is fighting metabolic syndrome. Two,
what's the point of this labeling if everybody does it? How much of an
impact will there be on consumers when they become inundated with
calorie-free labeled products?