Voluntary Report - public distribution

**Date:** 8/13/2003

**GAIN Report Number:** JA3523

JA3523

**Japan**

**Market Development Reports**

**Food Business Line**

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

**2003**

**Approved by:**

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

#### ATO Tokyo

**Prepared by:**

Akiko Matsuyoshi, Marketing Clerk

**Report Highlights:**

Japan supermarket chain\'s efforts to develop private label brand
products now to include produce as well; Reins International becomes the
fastest growing food service chain operator in Tokyo; Potential
industrial applications for Origami; Both retail sales and food service
use of pre-washed rice continue to increase in Japan and; The Government
of Japan will launch the Cabinet-level, Food Safety Committee, designed
to advise its food and health related Ministries.

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 III, Issue 35 July 1-15,
2003*

###### [Retail/Wholesale]{.underline}

-   On July 30, *Japan Self Service Association* is planning to invite a
    quality control manager from the *HE Butt Grocery Company,* of San
    Antonio, Texas to hold a seminar. The seminar will be on the U.S.
    food safety control system and how HACCP is applied in U.S.
    supermarket operations. (f 7/3)

-   Retailers are developing new private brand fruit and vegetable
    products to attract more consumers. *Ito-Yokado* is promoting its
    private brand watermelon, a watermelon that contains no seeds and is
    sweeter than other seed-free watermelons. This product was jointly
    developed with *Takii Seed Co*. *Ito-Yokado* is also selling
    Philippines bananas that are sweeter than the usual bananas. Other
    future private brand produce offerings will include strawberries,
    peaches, pears, apples, grapefruits and also Japanese pumpkin. (b
    7/10)

> *ATO Comment: The major Japanese supermarkets chains are intensifying
> their efforts to develop a variety of private label brand products,
> including produce. For more information please see GAIN Report#
> JA3050.*

####### Food Service

-   The number of outlets for *Reins International*, an operator of
    "Gyukaku" *yakiniku* grilled beef chain restaurants, is expected to
    reach 1,000 by July 7, 2003. This is only their seventh year since
    it first opened an outlet in Tokyo in October 1995. *Reins
    International* now holds the record for the fastest openings in the
    food service industry! (a 7/5)

-   On July 10, the Nikkei 225 Stock Average topped the psychologically
    important 10,000 level during the day, raising the expectations of
    many officials in hotels, restaurants, and travel industry. However,
    a clear sign of economy's recovery is yet to be seen. (b 7/10)

**[Food Processing/New Products/Market Trends]{.underline}**

-   The Origami Research Task Force, made up of Japanese scientists and
    engineers have launched plans to promote industrial applications for
    Origami, a traditional Japanese craft in which square pieces of
    paper are folded into various shapes. Applications already exist for
    canned beverage products. In another example, using a method created
    by origami artist, Tomoko Fuse, a cup noodle container can be made
    with no glue and only one sheet of paper. (g 7/27)

-   Sales and production of pre-washed rice has increased rapidly in the
    recent years. Most of the retail stores and cooperatives have
    introduced shelf space for pre-washed rice products, in many cases
    accounting for half of all whole rice sold. Also, more food service
    and HMR companies are using pre-washed rice. The market size is
    estimated to exceed one million tons, worth 300 billion yen in
    retail sales for 2003, according to the *Food Industry News*. (f
    7/3)

-   The quantity of imported fresh vegetables increased by 18% in May
    2003 compared to the same month last year. Food service companies
    are substituting imports for domestic vegetables due to continuously
    high domestic vegetable prices. Compared to last year, the import
    quantity of onion was 1.8 times higher and cabbage 2.4 times higher
    in May. Accumulated imports from January to May 2003 were also up by
    53% compared to last year. Chinese imports increased by 36%. (a 7/5)

####### 

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

-   In response to a series of food safety scandals in past years, the
    *Food Safety Committee*, led by the Cabinet Office will be launched
    on July 1. The new committee will have authority to advise the
    Ministry of Agriculture, Forestry and Fisheries (MAFF) and Ministry
    of Health, Labor, and Welfare on the Food Safety Law and evaluate
    safety issues associated with fertilizers, agricultural pesticides,
    food additives, GM foods, and health foods. MAFF will also put into
    effect the same day, a series of food policy reform programs, which
    include abolition of the Food Agency and establishment of a new
    bureau of food consumption and safety. (a 7/1)

-   The *Japan Housewives Association*, *Shodanren* (a nationwide
    consumer liaison organization), *Consumer Union of Japan*, and other
    organizations plan to begin issuing joint rating systems for food
    manufacturers and supermarkets. The criteria will be based on 10
    areas related to consumer interests, including whether they have a
    system in place that allows consumers to file complaints or comments
    about their products. They will also be rated on whether they have a
    structure in place to prevent and contain damage in case of an
    accident that threatens food safety. (a 7/15)

-   Although beverages that contain less than 1% alcohol are not
    considered as liquor under the Japan's Liquor Law, the *Fair Trade
    Committee* advised 11 industry associations such as the *Japan
    Brewers Association* and the *Japan Chain Store Association,* to
    instruct their member companies to correct beverage labels for
    products that actually contain a minimum of alcohol while being
    labeled as "non-alcoholic". (a 7/15)

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

-   The *U.S. Potato Board* held a promotional tasting seminar on U.S.
    mashed potatoes and IQF shredded potatoes on June 25 at the ANA
    Hotel Tokyo, featuring the healthy and low-cost characteristics of
    those products. (f 7/3)

** 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

\(g\) Daily Yomiuri

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.