Voluntary Report - public distribution

**Date:** 7/22/2004

**GAIN Report Number:** JA4525

JA4525

**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: *Coop Sapporo* acquires the online procurement services of GNX
(Global Net Exchange); *Daiei* announces plans to boost its profit
margin; *Yoshinoya D&C* is among those major Japanese restaurant chain
operators expanding outlets in China; *Nathan's Franchisee of Japan*
holds its first Japan version of the famous hotdog eating contest;
Powdered *Aojiru*, possibly another successful health product for the
Japanese consumer and; The U.S. Pavilion at the International Food
Ingredients and Additives show in Japan benefits from the record 26,000
visitors to the show.

Includes PSD Changes: No

Includes Trade Matrix: No

Unscheduled Report

Tokyo ATO \[JA2\]

\[JA\]

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**Food Business Line**

*Periodic Press Translations from ATO Tokyo Vol IV, Issue 52 June 1-15,
2004*

###### Retail/Wholesale

-   *Coop Sapporo* plans to reduce its procurement costs by
    approximately 100 million yen through participation in the GNX
    (Global Net Exchange) on-line B-to-B procurement system. Other large
    supermarket operators such as *Carrefour* also participate in the
    system. (b 6/1)

-   *Daiei*'s sales declined by 4% during the period of March thru May
    2004, compared to the same period last year. Unseasonable weather
    conditions are seen as partly the blame for the decline in sales.
    This was also the third straight month the company failed to meet
    its target. *Daiei* plans to boost its profit margin by improving
    inventory turnover for products such as clothing and reduce its
    labor costs. (a 6/10)

####### Food Service

-   *Starbucks Coffee Japan* plans to limit the number of new stores to
    50 in the fiscal year ending in March 2005. *Starbucks* opened 69
    stores in the last fiscal year and for this year, plans to focus on
    strengthening business system infrastructure rather than
    aggressively expanding its business. (b 6/1)

-   More major Japanese restaurant chain operators are beginning to open
    new outlets in China. For example, *Monteroza*, a major Japanese pub
    chain operator, plans to open its first "Shirokiya" pub in Hong Kong
    in September and Shanghai within this year. *Baltic System*, a
    Saitama prefecture-based curry restaurant chain, also plans to open
    its first store in Shanghai as early as September. And *Yoshinoya
    D&C*, which has been suffering from Japan's ban on imports of U.S.
    beef, also plans to accelerate its business expansion in China. This
    company already serves its beef bowls and other dishes at more than
    70 stores in and around Shanghai and Beijing and plans to add 35 new
    stores in the fiscal year ending February 2005. By 2010, *Yoshinoya
    D&C* hopes to have 300 outlets in China. (a 6/3)

-   *Nathan's Franchisee of Japan* opened its second "Nathan's" hotdog
    shop in Japan on May 30 in the new Shiodome Nihon Television Tower,
    Tokyo. On its opening day, *Nathan's* held a hotdog eating contest,
    and the winner earned the right to participate in the world contest
    that is to be held in New York City on the July 4^th^ fourth
    holiday. (b 6/8)

> *ATO Note: ATO Tokyo Director, Mark Dries also gave a short aisatsu
> (speech) at the event while the Deputy Director attempted to compete
> in the contest.*

-   *McDonald's Japan* is planning to introduce its most expensive
    hamburger ever to be sold in its outlets in Japan. Called the
    premium "Mc Gran", it will retail for 350 yen each. There is 80
    percent more meat in the patty compared to their normal burgers. (b
    6/8)

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

-   More and more food companies are introducing the Japanese consumer
    to the new powdered *aojiru* (a green and yellow vegetable
    juice mix) drink products. They are normally sold one serving per
    package and are convenient to carry around. For example, in addition
    to *Kagome* and *Suntory*, *Nisshin Pharma* plans to launch catalog
    sales of their powdered *aojiru* product called "Organic Aojiru"
    which uses young New Zealand wheat for its dietary fiber properties.
    (a 6/8)

-   According to the financial statements for major Japanese food
    companies, in the fiscal year ending in March 2004, 61 out of 97
    companies reported on increase in profit, and only one company
    reported a deficit in its current account. However, total sales for
    all companies declined by 1.6% compared to the same period in the
    previous year. Specifically, fishery-related companies saw declines
    in profits while profits of livestock-related companies improved. (f
    6/3)

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

-   On June 9, Japan's Ministry of Health, Labor, and Welfare
    implemented a temporary ban on imports of frozen *gyoza*
    (Chinese-style steam-baked meat pies) or any ingredients for
    *gyozas* from Korea due to a report that rotten ingredients used in
    the preparations came from that country. (a 6/10)

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

-   IFIA (International Food Ingredients and Additives) Japan 2004 was
    held on May 26-28 at Tokyo Big Sight. The total attendance exceeded
    26,000, which was the record high for this show. Joining U.S. and
    Korea were China and Australia which exhibited at the International
    Pavilion for the first time. The U.S. Pavilion featured products
    such as functional fruits and spice extracts. (Food Chemical News
    6/3)

> For more information on IFIA Japan, please go to our website at:
>
> <http://www.atojapan.org/intro.html> (Click on the "Trade Show" menu)

-   *CP Kelco Japan*, an exhibitor at IFIA Japan, held a reception with
    its Japanese distributors *Dainippon Seiyaku* and *San-Ei-Gen FFI*
    on May 27 commemorating its 30^th^ anniversary of marketing xanthan
    gum in Japan. Its business first started in 1969 when FDA approved
    xanthan gum as a food additive. Mark Dries, Director of ATO Tokyo,
    gave a speech congratulating their effort and success. (Shokuhin
    Kagaku Shimbun 6/3)

**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.