Required Report - public distribution

**Date:** 12/15/2003

**GAIN Report Number:** JA3536

JA3536

**Japan**

**Wine**

**Japan Wine Market Annual Report**

**2003**

**Approved by:**

![](media/image1.wmf)Mark Dries, Director, ATO Tokyo

Agricultural Trade Office

**Prepared by:**

Promer Japan

**Report Highlights:**

Japan\'s bottled wine imports fell 4 percent by volume from June 2002 to
May 2003, but rose 2 percent in value. Despite a sluggish market
overall, US exports rose 23 percent by volume over this same period. US
market share in CY 2002 was slightly less than 11 percent and slightly
more than 8 percent in volume and value terms, respectively, both down
from the previous year. However, figures for 2003 are expected to
improve given the rebound in US exports that began in the second half of
2002. American wine exports continue to face strong competition from
France, although that country\'s market share dipped slightly in 2003.
Australia and South Africa are also increasing exports. Nevertheless,
the outlook is positive for US wine, as the overall market recovers and
imported wine further erodes the market share of traditional spirits and
domestic wine. Moreover, the deregulation of alcohol retailing, which
took effect in September 2003, presents new opportunities.

Includes PSD Changes: No

Includes Trade Matrix: No

Unscheduled Report

Tokyo ATO \[JA2\]

\[JA\]

Table of Contents

######### I. INTRODUCTION....................................................................................................3

1.1 EXECUTIVE
SUMMARY...................................................................................................3

1.2 STRUCTURE OF THIS
REPORT..........................................................................................4

######### II. AN OVERVIEW OF JAPAN'S ALCOHOLIC BEVERAGE MARKET...............................5

2.1 JAPAN'S CHANGING ALCOHOL
CONSUMPTION..................................................................5

2.2 DEMOGRAPHIC BREAKDOWN OF JAPANESE ALCOHOLIC BEVERAGE
CONSUMPTION.............6

2.3 GEOGRAPHICAL BREAKDOWN OF JAPANESE ALCOHOLIC BEVERAGE
CONSUMPTION............6

#### III. WINE MARKET OVERVIEW.................................................................................8

3.1 CONSUMPTION
TRENDS..................................................................................................8

3.2 DOMESTIC
WINE.........................................................................................................
11

3.3 IMPORTED
WINE...........................................................................................................13

3.3.1
US............................................................................................................................15

3.3.2
France........................................................................................................................16

3.3.3
Italy........................................................................................................................\...16

3.3.4
Chile..........................................................................................................................16

3.3.5
Germany..................................................................................................................\....16

3.3.6
Australia.....................................................................................................................17

3.3.7 Promotional activities of European and New World
competitors....................................................17

3.4 DISTRIBUTION
CHANNELS..........................................................................................\...18

3.4.1
Retail.........................................................................................................................18

######### IV. KEY ISSUES AFFECTING THE WINE MARKET.......................................................20

4.1 DEREGULATION OF ALCOHOLIC BEVERAGE
DISTRIBUTION...............................................20

4.2 LIQUOR TAX
INCREASE.................................................................................................20

4.3 EXCHANGE RATE
ISSUES...............................................................................................20

4.4 ORGANIC
WINE............................................................................................................20

######### APPENDIX I: LEGAL REGULATIONS RELATED TO THE WINE TRADE..........................21

1\. FOOD SANITATION LAW
REQUIREMENTS........................................................................\...21

2\. LABELING
REQUIREMENTS.............................................................................................21

3\. REQUIREMENTS UNDER THE NEW PACKAGING RECYCLING LAW
........................................23

4\. TARIFF AND TAX
SITUATION............................................................................................23

######### APPENDIX II: STATISTICAL TABLES.........................................................................26

TABLE 1: WINE IMPORTS BY
TYPE.......................................................................................26

TABLE 2: BOTTLED WINE IMPORTS BY SUPPLYING
COUNTRY..................................................28

TABLE 3: SPARKLING WINE IMPORTS BY SUPPLYING
COUNTRY...............................................29

TABLE 4: WINE COOLER IMPORTS BY SUPPLYING
COUNTRY................................................\...30

TABLE 5: BULK WINE IMPORTS BY SUPPLYING
COUNTRY......................................................31

TABLE 6: GRAPE MUST IMPORTS BY SUPPLYING
COUNTRY....................................................32

TABLE 7: VERMOUTH IMPORTS BY SUPPLYING
COUNTRY......................................................33

TABLE 8: SHERRY/FORTIFIED WINE IMPORTS BY SUPPLYING
COUNTRY...................................34

**JAPAN WINE MARKET ANNUAL REPORT**

# I. INTRODUCTION

## 1.1 Executive summary

Japan's wine market continues to recover from the wine boom/bust of the
mid- to late-1990s. After several years of stagnation, US wine exports
are once again rising. For US producers in particular, there are at
least four reasons for optimism regarding the growth potential of the
Japanese wine market:

-   **[Consumer tastes are changing]{.underline}**. Although total
    alcohol consumption in Japan has been flat to declining in recent
    years (see Fig. 2, p. 3), wine consumption has risen more than
    threefold since 1965 (see Fig. 6, p. 6). Nevertheless, significant
    potential for growth remains. The table below indicates that wine
    accounts for a mere 6.3 percent of the total alcohol consumption in
    Japan, by far the smallest share among large country consumers.

# 

###  Fig. 1: Cross-country comparison of adult per capita alcohol consumption

**(**liters per year)

+----------------+---------------+---------------+--------------------+
| # Countr       | **Total       | **Wine        | **Wine as a share  |
| y {#country-1} | consumption** | consumption** | of total alcohol   |
|                |               |               | consumption (%)**  |
+----------------+---------------+---------------+--------------------+
| ## Portugal    | 16.6          | 7.2           | 43                 |
+----------------+---------------+---------------+--------------------+
| France         | 13.3          | 8.3           | 62                 |
+----------------+---------------+---------------+--------------------+
| Germany        | 12.5          | 3.3           | 26                 |
+----------------+---------------+---------------+--------------------+
| South Africa   | 11.5          | 5.0           | 43                 |
+----------------+---------------+---------------+--------------------+
| Spain          | 11.2          | 4.6           | 41                 |
+----------------+---------------+---------------+--------------------+
| Australia      | 10.3          | 3.4           | 33                 |
+----------------+---------------+---------------+--------------------+
| UK             | 9.7           | 2.3           | 23                 |
+----------------+---------------+---------------+--------------------+
| Argentina      | 9.6           | 6.9           | 71                 |
+----------------+---------------+---------------+--------------------+
| Italy          | 9.2           | 7.1           | 77                 |
+----------------+---------------+---------------+--------------------+
| USA            | 9.1           | 1.7           | 18                 |
+----------------+---------------+---------------+--------------------+
| Romania        | 8.0           | 3.4           | 42                 |
+----------------+---------------+---------------+--------------------+
| Korea          | 6.8           | \> 0.1        | \*                 |
+----------------+---------------+---------------+--------------------+
| Japan          | 6.3           | 0.4           | 6                  |
+----------------+---------------+---------------+--------------------+
| China          | 5.2           | 0.1           | 2                  |
+----------------+---------------+---------------+--------------------+

\*: less than 0.5%

Source: Alcohol Database, WHO.

#######  Note: Consumption volume is converted to 100% alcohol equivalent.

-   **[Japanese wine drinkers are becoming more aware of the high
    quality, reasonably priced wines produced in other parts of the
    world, including the United States]{.underline}**. Although France
    remains synonymous with wine for many, the growing popularity of
    "New World" wines, including those from the United States,
    Australia, and South Africa, reveals a growing sophistication and
    willingness to experiment on the part of the Japanese consumer (see
    Section 3.1 "Consumption trends," pp.6-7).

-   **[The decline in the dollar versus the euro has enhanced the
    competitive position of US wines]{.underline}**. This can be seen in
    the strong rebound in US wine exports over the past 12 months (see
    Appendix II, Table 2, p. 26).

-   **[Deregulation of the alcohol retailing market is advantageous to
    US producers]{.underline}**. Starting in September 2003,
    restrictions on the sale of alcoholic beverages by retailers are
    being lifted. As supermarkets and convenience stores find it easier
    to sell wine, US products are likely to find new opportunities to
    increase both volume and market share, particularly given their
    strength in the lower-end products on which such new outlets are
    likely to focus (see Section 3.4.1 "Retail," p. 16).

## 1.2 Structure of this report

This report is designed to provide an overview of current trends and
likely future developments in the Japanese wine market for US wine
exporters. Section II begins with an alcoholic beverage market overview
outlining overall alcohol consumption trends.

Section III broadly examines consumption trends in the Japanese wine
market in demographic and regional terms. This section also analyzes the
domestic and imported wine markets, providing a brief outline of major
wine exporters' activities in the Japanese market. Section III concludes
with an analysis of the distribution channels for wine and the
implications for US exporters.

Section IV, the final section of the report, concludes with a discussion
of the major regulatory and tax issues affecting the wine market in
Japan. The report also includes two appendices, the first of which
provides information on major regulations covering wine imports. The
second is a set of statistical tables providing additional data on wine
exports to Japan.

# II. AN OVERVIEW OF JAPAN'S Alcoholic Beverage Market 

## 

## 2.1 Japan's changing alcohol consumption 

Japanese alcohol consumption has increased steadily for several decades,
in line with Japan's rapid economic growth. Consumption subsequently
leveled off (see Fig. 2) as Japan entered a decade of recession, which
it appears to be leaving behind in 2003. At the same time, the
composition of Japan's alcohol consumption continues to undergo rapid
change.

![](media/image2.wmf){width="5.188194444444444in"
height="3.6569444444444446in"} **Beer:** Beer traditionally accounts for
more than half of Japan's total alcohol consumption, but it has faced
increased competition from cheaper low-malt beers since 1994.

**Sake:** Consumption of traditional Japanese rice wine is slowly but
steadily declining.

**Shochu:** This traditional distilled spirit most often made from
grain, is enjoying a bit of a renaissance, particularly in Tokyo,
resulting in a rise in consumption in recent years.

**Liqueurs:** These are used most often in mixed drinks. Because of
their relatively low cost and low alcohol content, liqueur-based drinks
are popular with women and young people.

**Wine:** Wine consumption has been on a rising trend since the 1960s,
although it has experienced several booms and busts. The most recent
"red wine boom" of 1997/98, saw consumption double compared to earlier
years. After the end of the boom, consumption declined somewhat, but
again, the trend is up as wine has become increasingly accepted by
consumers.

![](media/image3.wmf){width="5.573611111111111in"
height="3.115972222222222in"}

Note: Volume is converted to100% alcohol equivalent.

Source: Monthly Statistics Journal of Food and Liquor, April 2003

## 2.2 Demographic breakdown of Japanese alcoholic beverage consumption

![](media/image4.wmf){width="4.719444444444444in"
height="2.7375in"}According to household expenditure figures compiled by
the Statistics Bureau of Japan, beer, including low-malt beer, accounts
for almost 50% of total alcohol consumption among all age groups. Sake
and shochu are more popular with older consumers. Wine is most popular
in the 30-39 age group (see Fig. 4).

## 2.3 Geographical breakdown of Japanese alcoholic beverage consumption

Most wine in Japan is consumed in major urban areas, with more than 60%
of all premium wines consumed in Tokyo alone. In rural areas, beer, sake
and shochu remain the alcoholic beverages of choice. Nevertheless,
people in smaller towns and the countryside do represent a significant
market, particularly for lower priced wines sold in two-liter or
three-liter packages at discount

stores. According to one trade interview, if such low-end wines can
build a presence in rural areas, overall demand for wine in Japan will
expand significantly.

**Fig. 5: Consumption of wine and other alcoholic beverages by
prefecture, FY 2001** (¥ bil)

+----------+---------+--------+--------+--------+-------+------------+
| **Pref   | *       |        | **     | **     | **Sho | **Total**  |
| ecture** | *Wine** |        | Beer** | Sake** | chu** |            |
+----------+---------+--------+--------+--------+-------+------------+
|          | Total   | Per    |        |        |       |            |
|          |         | capita |        |        |       |            |
|          |         |        |        |        |       |            |
|          |         | (000   |        |        |       |            |
|          |         | yen)   |        |        |       |            |
+----------+---------+--------+--------+--------+-------+------------+
| Tokyo    | 87      | 8.82   | 335    | 86     | 80    | 772        |
+----------+---------+--------+--------+--------+-------+------------+
| Osaka    | 28      | 4.10   | 216    | 53     | 31    | 459        |
+----------+---------+--------+--------+--------+-------+------------+
| Kanagawa | 24      | 3.53   | 126    | 46     | 41    | 341        |
| (Y       |         |        |        |        |       |            |
| okohama) |         |        |        |        |       |            |
+----------+---------+--------+--------+--------+-------+------------+
| Hokkaido | 18      | 4.14   | 102    | 31     | 34    | 264        |
| (        |         |        |        |        |       |            |
| Sapporo) |         |        |        |        |       |            |
+----------+---------+--------+--------+--------+-------+------------+
| Aichi    | 14      | 2.82   | 153    | 41     | 24    | 322        |
| (Nagoya) |         |        |        |        |       |            |
+----------+---------+--------+--------+--------+-------+------------+
| Saitama  | 13      | 2.52   | 93     | 34     | 33    | 246        |
+----------+---------+--------+--------+--------+-------+------------+
| Chiba    | 13      | 2.87   | 77     | 31     | 26    | 211        |
+----------+---------+--------+--------+--------+-------+------------+
| Hyogo    | 11      | 2.69   | 98     | 34     | 16    | 229        |
| (Kobe)   |         |        |        |        |       |            |
+----------+---------+--------+--------+--------+-------+------------+
| Shizuoka | 8       | 2.69   | 63     | 25     | 19    | 154        |
+----------+---------+--------+--------+--------+-------+------------+
| National | 7       | 3.45   | 51     | 18     | 14    | 122        |
| Average  |         |        |        |        |       |            |
+----------+---------+--------+--------+--------+-------+------------+

Source: National Tax Agency Annual Report, 2003.

The table below shows wine sales as a percentage of sake sales in
various regions. In Tokyo, the sales of wine nearly equal those of sake.
In other areas, wine sales are equal to about half of sake.

Source: Monthly Statistics Journal of Food and Liquor, January 2003

![](media/image5.wmf){width="6.0in" height="3.0881944444444445in"}

######## **III. Wine Market Overview**

## 3.1 Consumption trends 

As mentioned in the previous section, the Japanese wine market has
continued to expand over the past four decades and consumption remains
strong. To date, there have been at least six surges in wine consumption
since the end of World War II. One such spurt occurred when domestic
wine first became available for less than ¥2,000 in 1978. Another spurt
occurred in the late 1970s and early 1980s when sweeter German wines
became popular. The Beaujolais Nouveau boom followed in the late 1980s.

The most important boost to the industry, however, was an explosion of
consumer interest in red wine in the 1990s, driven by a series of
scientific reports touting the health benefits of red wine. When these
benefits became widely known in Japan in 1998, consumption more than
doubled. However, this led to a buildup of excess inventories that took
more than two years to clear, causing a subsequent bust---one that was
exacerbated by stagnant-to-declining consumption. According to the
latest information from Japanese importers, the overall market may have
bottomed out in 2003 (see Fig. 6).

![](media/image6.wmf){width="5.115277777777778in"
height="3.4541666666666666in"}

Source: National Tax Agency.

With respect to type of wine consumed, until the 1980s, Japanese showed
a preference for sweet, fruity, white wines, which accounted for more
than half of all consumption. But since the red wine boom of 1997/98,
red wine has taken a more than 60% share. The shares of red and white
have reversed in the past five years. And rosé has, in general, failed
to catch on with consumers and its share has declined (see Fig. 7).

![](media/image7.wmf){width="4.0in" height="2.6347222222222224in"}

Source: 2003 Wine Annual Report, Mercian.

Surveys of 1,500 consumers conducted in 1998 and 2000 by Japanese
winemaker and importer, Mercian, revealed type, price, and a major
country of origin as the three most important factors in buyers'
purchase decisions. As Japanese consumers become more familiar with
wines and more discriminating, price has become slightly less important,
while the product's compatibility with food has risen in importance.
Although a slightly higher percentage of respondents in 2000 mentioned
brand name as an important factor than in 1998, this criterion was only
cited by slightly more than 10 percent of respondents (see Fig. 8).

![](media/image8.wmf)

Source: 2003 Annual Wine Report, Mercian

The table below shows annual expenditures on wine in Japan from 1994 to
2001. Over the period, the average cost per liter declined some 15
percent from ¥10,840 to ¥9,240. This reflects both deflation in the
Japanese economy as a whole and the increasing popularity of moderately
priced "New World" wines.

Note that while total spending on alcohol declined significantly over
the period, wine consumption doubled, expenditures on wine rose by
nearly 70 percent, and wine's share of the total alcoholic beverage
market doubled - from 3.0% to 6.1%.

+------+-----------+-----------+--------------+----------+-----------+
| **   |           |           |              |          |           |
| Fig. |           |           |              |          |           |
| 9-A: |           |           |              |          |           |
| An   |           |           |              |          |           |
| nual |           |           |              |          |           |
| expe |           |           |              |          |           |
| ndit |           |           |              |          |           |
| ures |           |           |              |          |           |
| on   |           |           |              |          |           |
| w    |           |           |              |          |           |
| ine, |           |           |              |          |           |
| 199  |           |           |              |          |           |
| 4-20 |           |           |              |          |           |
| 01** |           |           |              |          |           |
|      |           |           |              |          |           |
| Fi   |           |           |              |          |           |
| scal |           |           |              |          |           |
| Year |           |           |              |          |           |
| (    |           |           |              |          |           |
| Apri |           |           |              |          |           |
| l-Ma |           |           |              |          |           |
| rch) |           |           |              |          |           |
+------+-----------+-----------+--------------+----------+-----------+
| **Ye | **Expe    | **Q       | **Avg. cost  | **Total  | **Wine    |
| ar** | nditure** | uantity** | per liter**  | exp      | Share of  |
|      |           | (kl)      | (¥000)       | enditure | total     |
|      | (¥bill)   |           |              | on       | alcohol   |
|      |           |           |              | a        | expe      |
|      |           |           |              | lcohol** | nditure** |
|      |           |           |              |          |           |
|      |           |           |              | (¥bill)  | **%**     |
+------+-----------+-----------+--------------+----------+-----------+
| 1994 | 207       | 19,000    | 10.84        | 6,860    | 3.0       |
+------+-----------+-----------+--------------+----------+-----------+
| 1995 | 211       | 22,000    | 9.57         | 6,660    | 3.2       |
+------+-----------+-----------+--------------+----------+-----------+
| 1996 | 227       | 24,000    | 9.37         | 6,540    | 3.5       |
+------+-----------+-----------+--------------+----------+-----------+
| 1997 | 329       | 34,000    | 9.78         | 6,510    | 5.1       |
+------+-----------+-----------+--------------+----------+-----------+
| 1998 | 443       | 44,000    | 9.98         | 6,360    | 7.0       |
+------+-----------+-----------+--------------+----------+-----------+
| 1999 | 401       | 41,000    | 9.68         | 6,130    | 6.5       |
+------+-----------+-----------+--------------+----------+-----------+
| 2000 | 369       | 40,000    | 9.26         | 5,880    | 6.3       |
+------+-----------+-----------+--------------+----------+-----------+
| 2001 | 349       | 38,000    | 9.24         | 5,720    | 6.1       |
+------+-----------+-----------+--------------+----------+-----------+
| Vo   |           |           |              |          |           |
| lume |           |           |              |          |           |
| is   |           |           |              |          |           |
| c    |           |           |              |          |           |
| onve |           |           |              |          |           |
| rted |           |           |              |          |           |
| to   |           |           |              |          |           |
| 100  |           |           |              |          |           |
| %    |           |           |              |          |           |
| alc  |           |           |              |          |           |
| ohol |           |           |              |          |           |
| equ  |           |           |              |          |           |
| ival |           |           |              |          |           |
| ent. |           |           |              |          |           |
|      |           |           |              |          |           |
| Sou  |           |           |              |          |           |
| rce: |           |           |              |          |           |
| Mon  |           |           |              |          |           |
| thly |           |           |              |          |           |
| St   |           |           |              |          |           |
| atis |           |           |              |          |           |
| tics |           |           |              |          |           |
| Jou  |           |           |              |          |           |
| rnal |           |           |              |          |           |
| of   |           |           |              |          |           |
| Food |           |           |              |          |           |
| and  |           |           |              |          |           |
| Liq  |           |           |              |          |           |
| uor, |           |           |              |          |           |
| Ap   |           |           |              |          |           |
| ril, |           |           |              |          |           |
| 2003 |           |           |              |          |           |
+------+-----------+-----------+--------------+----------+-----------+

![](media/image9.wmf)

Source: National Tax Agency Annual Report, 2003.

## 3.2 Domestic wine

In Japan, two types of wine are classified as "domestic": 1) wines that
are produced with more than 50% domestic grapes; and 2) wines that are
fermented in Japan. Some wine labeled domestic is actually a blend of
domestic and imported wine, especially bulk wine, and some is made from
imported grape must (concentrated grape juice) and fermented in Japan.
The share of truly domestic wine is thus only about 10 percent of the
total labeled as such.

According to the National Tax Agency, domestic wine shipments are
recovering, but the figures given below include non-wine beverages such
as grapefruit soda liquor, which are classified under the same category
as wine. Thus, sales of domestic wine are still decreasing slightly (see
Fig. 10).

**Fig. 10: Domestic wine shipments**, 1998-2002

+------------------+---------------------+----------------------------+
| ##               | ### Volume          | #                          |
| # Year {#year-1} |                     | ## Increase (or decrease)  |
|                  | (hectoliters)       |                            |
|                  |                     | ###  from previous year    |
|                  |                     |                            |
|                  |                     | (%)                        |
+------------------+---------------------+----------------------------+
| 1998             | 1,519,500           | 42.5\*                     |
+------------------+---------------------+----------------------------+
| 1999             | 1,252,450           | (17.6)                     |
+------------------+---------------------+----------------------------+
| 2000             | 1,153,020           | (7.9)                      |
+------------------+---------------------+----------------------------+
| 2001             | 1,101,060           | (4.5)                      |
+------------------+---------------------+----------------------------+
| 2002             | 1,110,040           | 0.8                        |
+------------------+---------------------+----------------------------+

\* 1998 was the year of the red wine boom.

Source: National Tax Agency Annual Report, 2003.

The table and chart on the next page show the domestic wine market is
dominated by a few large companies, with the top three taking nearly
three-fourths of all sales. Domestic producers focus largely on low
price wines (less than ¥1,000 per bottle). Overall, sales of domestic
wine for January through July 2003 have declined by 20 percent compared
with the previous year. This is largely due to the fact that Suntory
shifted the source of its flagship product, Delica Maison, from domestic
wine to a wine imported from France. Other major companies, meanwhile,
have substantially increased their sales of domestic wine. And the large
domestic producers (i.e., Mercian, Suntory, Sapporo, and Kikkoman) are
attempting to differentiate their products based on quality or other
attributes such as organic or additive-free wines.

**Fig. 11: Market share of major Japanese wine manufacturers,
2001-2003**

(¥ mil, %)

+-----------+--------+--------+--------+----------+--------+--------+
|           | **     |        | **2002 |          | **2003 |        |
|           | 2001** |        | (      |          | (forec |        |
|           |        |        | estima |          | ast)** |        |
|           |        |        | ted)** |          |        |        |
+-----------+--------+--------+--------+----------+--------+--------+
|           | **S    | **S    | **S    | *        | **S    | **S    |
|           | ales** | hare** | ales** | *Share** | ales** | hare** |
+-----------+--------+--------+--------+----------+--------+--------+
| Mercian   | 18,600 | 33.2   | 18,000 | 31.3     | 17,400 | 30.9   |
+-----------+--------+--------+--------+----------+--------+--------+
| Suntory   | 14,300 | 25.5   | 15,500 | 26.9     | 14,500 | 25.8   |
+-----------+--------+--------+--------+----------+--------+--------+
| Sapporo   | 8,200  | 14.6   | 8,500  | 14.8     | 8,600  | 15.3   |
|           |        |        |        |          |        |        |
| Beer      |        |        |        |          |        |        |
+-----------+--------+--------+--------+----------+--------+--------+
| Kikkoman  | 7,000  | 12.5   | 7,400  | 12.8     | 7,500  | 13.3   |
+-----------+--------+--------+--------+----------+--------+--------+
| Asahi     | 3,100  | 5.5    | 6,400  | 11.1     | 6,600  | 11.7   |
| Beer      |        |        |        |          |        |        |
+-----------+--------+--------+--------+----------+--------+--------+
| Others    | 1,950  | 3.5    | 1,800  | 3.1      | 1,700  | 3.0    |
+-----------+--------+--------+--------+----------+--------+--------+
| Total     | 56,000 | 100.0  | 57,600 | 100.0    | 56,300 | 100.0  |
+-----------+--------+--------+--------+----------+--------+--------+

Source: Fuji Keizai

　　　　　　　　　　　　　　

　**Fig. 12: Wine sales by price range, 2002**

![](media/image11.wmf){width="5.5in" height="3.5597222222222222in"}

![](media/image12.wmf){width="4.072916666666667in"
height="2.441666666666667in"}

### 3.3 Imported wine {#imported-wine .スタイル1}

![](media/image13.wmf){width="4.916666666666667in" height="2.875in"}More
than half of all wine consumed in Japan is imported. Both in volume and
value terms, more than three-fourths of these imports are bottled wines.
Thus, we focus on the market for bottled wine.

![](media/image14.wmf){width="5.999305555555556in"
height="2.8493055555555555in"}

As reflected in France's dominant market share (see Fig. 14a), Japanese
people strongly associate wine with France. Other producers, however,
including Italy, the US, Chile, Australia, and Spain are gradually
increasing export volumes to Japan.

![](media/image15.wmf){width="5.728346456692913in"
height="3.558267716535433in"}![](media/image16.wmf){width="5.581102362204724in"
height="3.3633858267716534in"}

![](media/image17.wmf)

　　

　　　　　

  ------------------- ---------- ---------- ---------- ---------- ----------
  Share of bottled                                                
  wine imports by                                                 
  country                                                         

                      1999       2000       2001       2002       2003\*

  France              43         42         45         47         45

  Italy               18         20         22         21         21

  United States       11         10         9          8          10

  Germany             12         9          7          7          5

  Chile               5          7          7          6          7

  Spain               5          4          4          5          5

  Australia           3          4          3          3          4

  Others              4          4          3          3          3

  Total               100        100        100        100        100
  ------------------- ---------- ---------- ---------- ---------- ----------

The chart on the next page compares the average price per liter for
bottled wine over the last five years. The US lost share in 2000 and
2001 (see above chart and table) as US wines rose in price relative to
other countries. The US has regained share in 2003, however, as the
average price declined. The same trend can be seen for French wine. In
2003, when the average price rose, it lost market share.

![](media/image18.wmf){width="5.995833333333334in"
height="8.04513888888889in"}

Mid-range products face a stiff challenge from the French, Italian, and
Chilean wines

that dominate this segment. In addition, demand from mid-priced
restaurants appears to be falling.

On the other hand, sales of US premium wines are rising steadily. It
appears the "California Wine by the Glass" campaign, in which about 300
restaurants serve the California wines, is helping to build and expand
awareness of these products. Other wine producing states, including
Washington and Oregon are also attracting market interest. Indeed,
American wines can now be found at Chinese, Japanese and even French
restaurants in Japan, in addition to those that serve American cuisine.

With respect to the retail market, US wines are selling well at online
wine shops, but less well in specialty and department stores. One
constraint to US wine exports appears to be the difficulty in
negotiating sufficient shelf space in retail stores. Several importers
have also commented that longtime California wine buyers have begun to
lose interest in the products due to rising prices over the past decade.
Thus, it is new customers that are driving consumption of premium US
wines.

### 3.3.2 France

For many Japanese wine drinkers, France is synonymous with wine. It
offers a broad range of products and is strong in all price segments.
French wine exports to Japan in 2002 totaled 62 million hectoliters, an
increase of 4.9 percent over the previous year. A highly successful TV
advertising campaign for Bordeaux wines helped boost exports of this
variety to 15.2 million hectoliters, a 14.8 percent increase over the
previous year. Beaujolais, which has been popular in recent years, sold
about 7 million hectoliters in 2002, nearly 80 percent of which was the
well-known Beaujolais Nouveau. Actually, it is said Beaujolais Nouveau
has already hit the peak since 1998, but its sales still makes a new
record every year as a seasonal product at year-end. Chablis, Burgundy,
Langue d'Oc, Cote du Rhône and Loire are also popular varieties.

### 3.3.3 Italy

Italian wine exports to Japan exploded in the 1990s along with the
growing popularity of Italian cuisine and a sharp rise in the number of
Italian restaurants. But sales have leveled off in recent years. Exports
in 2002 totaled 277,000 hectoliters, a decline of 5.5 percent from the
previous year. Price competition has hit Italian wines at the lower end
of the market, where they are relatively weak; and mid-range products
are also coming under price pressure. Stricter enforcement of drunk
driving laws has also reduced consumption of Italian wine, which is
heavily dependent on the restaurant market.

### 3.3.4 Chile

Chile, one of the most successful "New World" producers, emerged in
Japan around 1998 as a maker of reasonably priced, good quality wine.
But excess inventories in subsequent years has led to steep price
discounts and a "cheapening" of the country's brand image.

### 3.3.5 Germany

German wine exports, which are predominantly white wines, have fallen by
half since the red wine boom in Japan in 1998.

### 3.3.6 Australia

Although its market share remains small (3% of imports in 2002),
Australia is campaigning aggressively in Japan to raise exports to
Japan, including a major promotional exhibit at Japan's largest food
trade show, FOODEX 2003. Moreover, many Australian wines compete
directly with US wines in terms price and quality. Australia's
activities and market strategy in Japan thus bear close monitoring.

### 3.3.7 Promotional activities of European and New World competitors 

Various organizations established by US competitors are promoting wine
exports to Japan. Their activities include publishing newsletters;
producing point-of-purchase materials; and organizing press conferences,
exhibitions, trade shows, and other marketing events. Two
quasi-governmental trade organizations promote French wines in Japan.
France's SOPEXA, which has a budget of approximately ¥800 million (\$6.7
million) and a staff of 12, devotes most of its time and funding
resources to promoting French wine for on- and off-premises sales. This
includes a hefty increase for television advertising and other
promotional activities, focused on Bordeaux regional wines. In addition,
the Comité Interprofessionelle du Vins de Champagne (CIVC) has an annual
budget of \$250,000 and maintains two staff in Japan.

Similarly, Italy's governmental body, ICE, promotes Italian wine exports
to Japan. ICE has a wine promotion budget of approximately ¥50 million
(\$420,000) and a staff of three. It is currently stressing off-premises
sales, particularly at discount stores. Germany promotes wine exports
through an agent of the quasi-governmental German Wine Foundation, Japan
Office, which was set up in April 2000. The office has a staff of two
and a budget of ¥50 million. Spain's promotional activities are
reportedly run from the Spanish embassy, with one staff member and a
budget of \$170,000.

Among \"New World\" producers, the Chilean embassy employs one staff
member who promotes Chilean wine exports to Japan with a budget of ¥10
million (\$84,000). Wine of Australia is a promotional body that
operates under the auspices of the Australian Wine Export Committee
(AWEC). Its Japan office was set up in July 1998 and is aggressively
promoting Australian wine exports in close cooperation with the
Australian Embassy. It has two staff members and a budget of ¥40 million
(\$340,000). The Wine Institute of South Africa set up a Tokyo office in
July 2000. It has one staff member carrying out mostly trade-targeted
activities with a budget of \$84,000.

## 3.4 Distribution channels 

Nearly three-fourths of all wine consumed in Japan is sold at retail;
the balance is sold at restaurants and bars.

![](media/image19.wmf){width="4.542361111111111in"
height="2.5104166666666665in"}

### 3.4.1 Retail 

Wine distribution is regulated under the Liquor Tax Law, which applies
to retailers that hold liquor licenses. Domestic wine distribution is
generally a three- or four-tiered system from manufacturer to retailer,
with one or two wholesalers in between.

There are many types of retail distribution channels:

-   Direct imports by Japanese domestic manufacturers (e.g. Mercian,
    Suntory);

-   Imports through specialist trading companies;

-   Direct imports by department stores or large discount stores, which
    sell through their own channels;

-   Imports by specialist wine importers, which sell products directly
    to consumers.

In the late 1980s as some discount stores and importers started to
import wine directly, the price of imported wine in Japan fell to the
international market price. As more and more low-priced wines appear on
the market, the sales share of mass merchandisers and convenience stores
is sure to grow. Online retailers are also seeing strong increases in
sales, as they focus on small-lot shipments and lowering logistics
costs.

*[Deregulation of liquor retail licensing]{.underline}*

In September 2003, the Japanese government loosened restrictions on the
granting of liquor licenses. This long-awaited deregulatory measure is
certain to boost the number of liquor-selling retailers throughout the
country and will have a profound impact on the way alcoholic beverages
are sold in Japan.

The next table shows the change in the number of liquor wholesalers and
retailers over the past several years. As direct import channels have
been established, wholesalers have begun to play a less important role
and their numbers are declining. In addition, more than 25,000 small-
and medium-scale liquor retailers have shut their doors in the run-up to
deregulation. The table does not reflect this change because 2002 is the
most recent year for which data is available. Moreover the number of
retailers, even as recently as this year, is not expected to rise
drastically as the government has slowed down the process of
deregulation in some parts of the country to give smaller retailers time
to adjust. This has prevented some large nationwide chain stores from
entering the business all at once. Nevertheless, the number of retailers
is likely to increase significantly in 2003-04. According to the latest
data available, the number of new applications for liquor licenses
through September 2003, when deregulation went into effect, was 19,970,
50% more than for all of 2002 (13,889).

**Fig. 17: Annual change in number of liquor license-holders
(1997-2002**)

  ------------ ------------------- ------------------- -------------------
               Wholesale           Retail              Total

  1997         17,117              166,883             184,000

  1998         16,847              171,848             188,695

  1999         16,627              175,095             191,722

  2000         16,489              177,482             193,971

  2001         16,250              176,873             193,123

  2002         15,983              182,022             198,005
  ------------ ------------------- ------------------- -------------------

Source: National Tax Agency 2003

![](media/image20.wmf){width="3.9166666666666665in"
height="2.3430555555555554in"}Many potential sales channels for alcohol
have been created by deregulation (e.g., supermarkets, general
merchandise stores, and drugstores). Other prospective outlets for wine
include home delivery retailers (e.g., cake shops, florists, and pizza
delivery companies). Most of the new sales channels created by
deregulation are likely to focus on lower-end products, where US wines
are well positioned.

\* Mainly individually operated, but also includes department stores,
etc.

Source: Fuji Keizai.

# IV. KEY Issues Affecting the Wine market

## 4.1 Deregulation of alcoholic beverage distribution

In September 2003, Japanese government relaxed restrictions on the
retailing of alcoholic beverages. This is expected to significantly
boost the number of liquor retailers throughout the country and will
greatly affect the way alcoholic beverages are sold in Japan (see
Section 3.4.1, pp. 16-17).

## 4.2 Liquor tax increase

In May 2003, a tax increase on wine was implemented equivalent to some
¥10 per 750ml bottle. Domestic winemakers passed this increase on in
higher retail prices. Overseas wine exporters' reaction has been mixed.
Some say they will raise prices, while others say they will bear the
cost of the tax increase.

## 4.3 Exchange rate issues

The euro-yen exchange rate has been more volatile than expected. Whereas
in 2000 the euro traded at around ¥105, this year the euro has risen
substantially to around ¥130, after hitting a high of about ¥140. This
rise in the euro translates to a 25 percent increase in the price of
European wine, which has had a much larger impact on demand than the
liquor tax increase. In contrast, the dollar, which had traded between
¥120 and ¥130 over the past year, has subsequently weakened, hitting a
low of ¥108. If the dollar remains at this rate, it is likely to
substantially boost US wine exports.

## 4.4 Organic wine

European and American consumers are increasingly conscious of food
safety and the environment. Reflecting these concerns, many California
wineries are producing organic grapes and wines. This trend toward a
greater concern for the environment and food safety is also apparent in
Japan, where consumers are showing increasing interest in organic
products. According to one manager of a specialty wine shop, "The share
of organic wine sales is still less than 10 percent of the total, but
the number of organic wine drinkers is definitely increasing. They don't
mind paying higher prices for organic wine."

Since 2001, foods and beverages must meet the requirements of the JAS
(Japan Agricultural Standards) law to be certified organic in Japan.
Thus, US producers can arrange to be certified in the United States
under the USDA's organic program. This will ensure approval under JAS,
which recognizes US standards. As for imported alcoholic beverages, the
Japanese government recognizes the organic standards of certain
countries, including the United States. Despite the new JAS organic
standards, some importers complain that the rules are ambiguous and fail
to meet consumer needs.

# Appendix I: Legal regulations related to the wine trade

**1. Food Sanitation Law requirements**

Under the Food Sanitation Law, the Japanese Ministry of Health, Labor
and Welfare (MHLW) outlines the permissible quantities of wine coloring
agents and preservatives used as additives. All wine imported as gifts,
or for sale and other commercial purposes is subject to the Food
Sanitation Law, and import notification is required. A "Notification
Form for Importation of Foods, etc." must be submitted by importers to
the quarantine station with jurisdiction over the port of entry. Based
on the content of this notification form and the import history of the
wine, inspection may be required.

According to JETRO, if the wine is being imported into Japan for the
first time, it may be exempted from inspection requirements at the
quarantine station if the importer attaches a statement of voluntary
inspection results performed in advance by official laboratories
designated by the MHLW, or by official laboratories in the exporting
country. For details on permissible wine additives, please refer to the
Japanese Food Sanitation Law
([www.jetro.go.jp/se/e/standards_regulation/
food2003mar-e.pdf](../www.jetro.go.jp/se/e/standards_regulation/%20food2003mar-e.pdf)).

**2. Labeling requirements**

The table on next page lists labeling requirements for wine. Labeling
must be in Japanese and must be attached to the container in a visible
location. Wine without the required labeling may not be sold, displayed
for purposes of sale, or used for other commercial purposes.

Fig. 19: Labeling requirements for wine

+---------+-----------------------------------------------+-----------+
| ###     | ###### Requirement                            | **Name of |
| ### Lab |                                               | St        |
| el Item |                                               | atute\*** |
+---------+-----------------------------------------------+-----------+
| Product | Wine, fruit wine, or sweetened fruit wine     | FSL       |
| Name    |                                               |           |
+---------+-----------------------------------------------+-----------+
| Food    | Name of substance (and usage category) of     | FSL       |
| Ad      | anti-oxidants or synthetic preservatives,     |           |
| ditives | etc.                                          |           |
+---------+-----------------------------------------------+-----------+
| Alcohol | Label must list the ethyl alcohol content at  | L         |
| Content | 15°C as a percentage of total volume rounded  | BA/MSR/LT |
|         | to the nearest percentage point (Example:     |           |
|         | \"14%\" or \"Over 14% and less than 15%\").   |           |
+---------+-----------------------------------------------+-----------+
| Co      | Listed in milliliters (*ml*) or liters (*l*)  | LB        |
| ntainer |                                               | A/MSR/LT, |
| Volume  |                                               | ML        |
+---------+-----------------------------------------------+-----------+
| Type    | Sparkling wine labels must state, \"Contains  | L         |
|         | carbonation,\" or, \"carbon dioxide gas       | BA/MSR/LT |
|         | mixture.\"                                    |           |
+---------+-----------------------------------------------+-----------+
| Country | States where the wine was produced.           | AUPRMR    |
| of      |                                               |           |
| Origin  |                                               |           |
+---------+-----------------------------------------------+-----------+
| Name    | Label must include the name and address of    | FSL,      |
| and     | the importer.                                 | L         |
| Address |                                               | BA/MSR/LT |
| of      |                                               |           |
| I       |                                               |           |
| mporter |                                               |           |
+---------+-----------------------------------------------+-----------+
| Dest    | Label must list the destination after removal | L         |
| ination | from the bonded area, or the location of the  | BA/MSR/LT |
|         | bottler or packager. However, a symbol may be |           |
|         | used with the permission of the Ministry of   |           |
|         | Finance.                                      |           |
+---------+-----------------------------------------------+-----------+
| Other   | \(1\) Blends of imported and domestic wine    | Voluntary |
| Requi   |                                               | industry  |
| rements | Wines made from mixtures of domestic and      | standard  |
|         | imported wines must list the wines in order   |           |
|         | of quantity. For example, \"Made from         |           |
|         | domestic and imported wine.\"                 |           |
+---------+-----------------------------------------------+-----------+
|         | \(2\) Geographic labeling                     | Labeling  |
|         |                                               | standard  |
|         | For products such as Bordeaux and Chablis,    | based on  |
|         | whose product quality and reputation          | L         |
|         | fundamentally arise from the place of origin, | BA/MSR/LT |
|         | it is not permitted to use these geographic   | and ML    |
|         | designations for products produced elsewhere. |           |
+---------+-----------------------------------------------+-----------+
|         | \(3\) Labeling to prevent consumption by      | Labeling  |
|         | minors                                        | standard  |
|         |                                               | based on  |
|         | All liquor containers must clearly state,     | L         |
|         | \"Consumption of alcohol by minors is         | BA/MSR/LT |
|         | prohibited,\" or, \"Alcohol may only be       | and ML    |
|         | consumed by those age 20 or over.\"           |           |
+---------+-----------------------------------------------+-----------+
|         | \(4\) Promotion of recycling of liquor        | Law for   |
|         | containers                                    | Promotion |
|         |                                               | of        |
|         | Products packed in steel cans, aluminum cans, | Ut        |
|         | and PET bottles must have an identifying mark | ilization |
|         | on the container.                             | of        |
|         |                                               | Recycled  |
|         |                                               | Resources |
+---------+-----------------------------------------------+-----------+

**\*** · Food Sanitation Law: FSL
([www.jetro.go.jp/se/e/standards_regulation/
food2003mar-e.pdf](../www.jetro.go.jp/se/e/standards_regulation/%20food2003mar-e.pdf))

> · Measurement Law: ML
> (<http://www.jetro.go.jp/se/export_to_japan/files/oto/o-44.html>)
>
> · Law Concerning Liquor Business Association
>
> and Measures for Securing Revenue from Liquor Tax: LBA/MSR/LT
> (<http://www.jetro.go.jp/se/export_to_japan/files/oto/o-31.html>)
>
> · Act Against Unjustifiable Premiums and Misleading Representation:
> AUPRMR
> ([www.jetro.go.jp/se/export_to_japan/files/std/s-10.pdf](../www.jetro.go.jp/se/export_to_japan/files/std/s-10.pdf))

Source: JETRO Marketing Guidebook for Major Imported Products - Wine
2002.

**3. Requirements under the new packaging recycling law**

The Japanese government began full implementation of the Packaging
Recycling Law in April 2000, which requires the industry to recycle all
paper and plastic packaging, glass bottles, steel and aluminum cans, PET
bottles, and other plastic and paper containers. Manufacturers,
distributors, and retailers who manufacture and/or use the materials are
responsible for recycling costs. For imported products, importers may be
liable for such costs.

In the case of wine, according to industry sources, some importers have
requested that exporters use colorless glass bottles if possible, and a
number of wines in clear bottles have appeared on the market. However,
this is only appropriate for less-expensive or early drinking wines that
will be consumed within two to three weeks after purchase. For more
premium wines, generally speaking, the industry continues to use colored
bottles, despite the added recycling costs. Green bottles pose the
biggest problem since there are few uses for the recycled product.

Current recycling charges by type of container, effective August 2003,
to be paid to the Japan Containers and Packaging Recycling Association
are as follows:

> Colorless glass ¥3,000/metric ton
>
> Brown glass ¥5,700/metric ton
>
> Green/other colored glass ¥8,600/metric ton
>
> PET bottles ¥64,000/metric ton
>
> Paper containers ¥25,200/metric ton
>
> Plastic containers ¥76,000/metric ton

**4. Tariff and tax situation**

**WTO Uruguay Round tariff reductions**

Import duties on wine have been reduced gradually since implementation
of the WTO Uruguay Round agreement. The final reduction was in April
2000, when, most notably, the tariff rate on bottled wine was lowered to
15% (or ¥125/*l*, whichever is less, to a minimum of ¥67/*l)* from its
1999 level of 21.3% (or ¥150.83/*l*, whichever is less, to a minimum of
¥80.83/ *l*)*.* Tariff reductions on other wine categories have also
gone into effect, as summarized in the chart on the following page.

**Tariff Rates on Wine (as of April 2003)**

+----------------------------+-----------------------------------------+
|                            | ###  {#section-2 .スタイル1}            |
+----------------------------+-----------------------------------------+
| **Bottled Wine**           | 15% or ¥125/*l*, whichever is less, to  |
|                            | a minimum of ¥67/*l*                    |
| -HS220421020 (2L or less)  |                                         |
|                            | 15% or ¥125/*l*, whichever is less, to  |
| -HS220429010 (2L to 150L)  | a minimum of ¥67/*l*                    |
+----------------------------+-----------------------------------------+
| **Sparkling Wine**         | ¥182/*l*                                |
|                            |                                         |
| -HS220410000               |                                         |
+----------------------------+-----------------------------------------+
| **Wine Coolers**           | ¥27/*l*                                 |
|                            |                                         |
| > -HS220600221             |                                         |
| >                          |                                         |
| > (Other fermented         |                                         |
| > beverage mixtures)       |                                         |
+----------------------------+-----------------------------------------+
| **Bulk Wine**              | ¥45/*l*                                 |
|                            |                                         |
| \- HS220429090 (\>150L)    |                                         |
+----------------------------+-----------------------------------------+
| **Grape Must**             | 19.1*%*                                 |
|                            |                                         |
| -HS220430191               | ¥45/*l*                                 |
|                            |                                         |
| (1%+ alcohol, less than    |                                         |
| 10%sucrose by weight)      |                                         |
|                            |                                         |
| -HS220430200               |                                         |
|                            |                                         |
| (1% + alcohol -- other)    |                                         |
+----------------------------+-----------------------------------------+
| **Vermouth**               | ¥69.3/*l*                               |
|                            |                                         |
| -HS220510000 (2L or less)  | ¥69.3/*l*                               |
|                            |                                         |
| -HS220590200 (1%+ alcohol) |                                         |
+----------------------------+-----------------------------------------+
| **Sherry/Fortified Wine**  | ¥112/*l*                                |
|                            |                                         |
| -HS220421010               |                                         |
+----------------------------+-----------------------------------------+

Source: Customs Tariff Schedules of Japan 2003, Japan Tariff
Association.

**Liquor Tax Law regulations**

The liquor tax rate was increased by 30 percent for wine and 10 percent
for sweetened wine in May 2003. This increase is reflected in higher
prices for most alcoholic beverages and has depressed alcohol
consumption.

Tax rate on wine before/after the tax increase

+----------------+----------+---------------------+-------------------+
|                |          | Per kiloliter       | Per bottle        |
+----------------+----------+---------------------+-------------------+
| Wine           | Before   | 56,500 yen/kl       | 42 yen/bottle     |
+----------------+----------+---------------------+-------------------+
|                | After    | 70,472 yen/kl       | 53 yen/bottle     |
+----------------+----------+---------------------+-------------------+
| Sweetened      | Before   | 98,600 yen/kl       | 74 yen/bottle     |
|                |          |                     |                   |
| wine\*         |          |                     |                   |
+----------------+----------+---------------------+-------------------+
|                | After    | 103,722 yen/kl      | 78 yen/bottle     |
+----------------+----------+---------------------+-------------------+

\*For liquor with an alcohol content of 13 percent or higher, an
additional 8,644 yen/kl (8,220 yen before the increase) is levied for
each percentage point above 12 percent.

**Exchange Rates**

The following exchange rates are used throughout this report:

1999 ¥114.54 /\$

> 2000 ¥109.07 /\$
>
> 2001 ¥121.61 /\$

2002 ¥125.19 /\$

2003 ¥122.00 /\$ (Jan -- Jun)

¥119.00 /\$ (Jul -- Dec)

###  {#section-3 .スタイル1}

Source: US Treasury Department; Bank of Japan.

**Appendix II: STATISTICAL TABLES**

**Table 1: Wine imports by type**

+---------------------------+-------+-------+-------+---------------+
| **Volume (000             |       |       |       |               |
| hectoliters)**            |       |       |       |               |
+---------------------------+-------+-------+-------+---------------+
|                           | **2   | **2   | **2   | **2003 six    |
|                           | 000** | 001** | 002** | months        |
|                           |       |       |       | increase      |
|                           |       |       |       | (decrease)    |
|                           |       |       |       | from 2002**   |
|                           |       |       |       |               |
|                           |       |       |       | **%**         |
+---------------------------+-------+-------+-------+---------------+
| **Bottled Wine**          | 1,    | 1,    | 1,    | (0.6)         |
|                           | 282.6 | 366.8 | 360.3 |               |
| HS220421020 (2L or less)  |       |       |       | (1.5)         |
|                           | 1,    | 1,    | 1     |               |
| HS220429010 (2L to 150L)  | 236.0 | 306.5 | 296.1 | 15.9          |
|                           |       |       |       |               |
|                           | 46.5  | 60.2  | 64.2  |               |
+---------------------------+-------+-------+-------+---------------+
| **Sparkling Wine**        | 107.0 | 124.3 | 133.0 | (0.1)         |
|                           |       |       |       |               |
| HS220410000               | 107.0 | 124.3 | 133.0 |               |
+---------------------------+-------+-------+-------+---------------+
| **Wine Coolers**          | 30.2  | 37.1  | 46.7  | 32.5          |
|                           |       |       |       |               |
| HS220600221 Other         | 30.2  | 37.1  | 46.7  |               |
| Fermented                 |       |       |       |               |
|                           |       |       |       |               |
| Beverage Mixtures         |       |       |       |               |
+---------------------------+-------+-------+-------+---------------+
| **Bulk Wine**             | 259.4 | 191.0 | 177.6 | (14.6)        |
|                           |       |       |       |               |
| HS220429090 (\>150L)      | 259.4 | 191.0 | 177.6 |               |
+---------------------------+-------+-------+-------+---------------+
| **Grape Must**            | 59.4  | 56.5  | 60.7  | 12.6          |
|                           |       |       |       |               |
| HS220430191 (1%+ alcohol, | 0.5   | 0     | 0     | \-            |
| less than                 |       |       |       |               |
|                           | 59.0  | 56.5  | 60.7  | 12.6          |
| 10% sucrose by weight)    |       |       |       |               |
|                           |       |       |       |               |
| HS220430200 (1%+          |       |       |       |               |
| alcohol - other)          |       |       |       |               |
+---------------------------+-------+-------+-------+---------------+
| **Vermouth**              | 32.5  | 26.9  | 21.1  | (9.7)         |
|                           |       |       |       |               |
| HS220510000 (2L or less)  | 32.3  | 26.4  | 20.5  | (9.8)         |
|                           |       |       |       |               |
| HS220590200 (1%+ alcohol) | 0.2   | 0.5   | 0.6   | 0             |
+---------------------------+-------+-------+-------+---------------+
| **Sherry/Fortified Wine** | 8.5   | 9.4   | 8.5   | 15.0          |
|                           |       |       |       |               |
| HS220421010               | 8.5   | 9.4   | 8.5   |               |
+---------------------------+-------+-------+-------+---------------+

Source: World Trade Atlas, based on Japan Customs data (CY January -
December).

(Table 1 continued)

+---------------------------+-------+-------+-------+---------------+
| **Value (¥ bill)**        |       |       |       |               |
+---------------------------+-------+-------+-------+---------------+
|                           | **2   | **2   | **2   | **2003 six    |
|                           | 000** | 001** | 002** | months        |
|                           |       |       |       | increase      |
|                           |       |       |       | (decrease)    |
|                           |       |       |       | from 2002**   |
|                           |       |       |       |               |
|                           |       |       |       | **%**         |
+---------------------------+-------+-------+-------+---------------+
| **Bottled Wine**          | 66.9  | 74.9  | 78.9  | 2.6           |
|                           |       |       |       |               |
| HS220421020 (2L or less)  | 66.0  | 73.8  | 77.6  | 2.6           |
|                           |       |       |       |               |
| HS220429010 (2L to 150L)  | 0.9   | 1.1   | 1.3   | 1.8           |
+---------------------------+-------+-------+-------+---------------+
| **Sparkling Wine**        | 14.4  | 17.0  | 18.2  | 12.1          |
|                           |       |       |       |               |
| HS220410000               | 14.4  | 17.0  | 18.2  |               |
+---------------------------+-------+-------+-------+---------------+
| **Wine Coolers**          | 0.7   | 0.9   | 1.3   | 27.3          |
|                           |       |       |       |               |
| HS220600221 Other         | 0.7   | 0.9   | 1.3   |               |
| Fermented                 |       |       |       |               |
|                           |       |       |       |               |
| Beverage Mixtures         |       |       |       |               |
+---------------------------+-------+-------+-------+---------------+
| **Bulk Wine**             | 3.1   | 2.3   | 1.9   | (22.6)        |
|                           |       |       |       |               |
| HS220429090 (\>150L)      | 3.1   | 2.3   | 1.9   |               |
+---------------------------+-------+-------+-------+---------------+
| **Grape Must**            | 1.5   | 1.2   | 1.1   | (13.8)        |
|                           |       |       |       |               |
| HS220430191 (1%+ alcohol, | \*    | 0     | 0     | \-            |
| less than                 |       |       |       |               |
|                           | 1.5   | 1.2   | 1.1   | (13.8)        |
| 10% sucrose by weight)    |       |       |       |               |
|                           |       |       |       |               |
| HS220430200 (1%+          |       |       |       |               |
| alcohol - other)          |       |       |       |               |
+---------------------------+-------+-------+-------+---------------+
| **Vermouth**              | 0.9   | 0.8   | 0.6   | (0.3)         |
|                           |       |       |       |               |
| HS220510000 (2L or less)  | 0.9   | 0.8   | 0.6   | 0.4           |
|                           |       |       |       |               |
| HS220590200 (1%+ alcohol) | \*    | \*    | \*    | (4.5)         |
+---------------------------+-------+-------+-------+---------------+
| **Sherry/Fortified Wine** | 0.6   | 0.7   | 0.6   | 15.0          |
|                           |       |       |       |               |
| HS220421010               | 0.6   | 0.7   | 0.6   |               |
+---------------------------+-------+-------+-------+---------------+

\*: Less than 0.05.

Source: World Trade Atlas, based on Japan Customs data (CY January -
December).

**Table 2: Bottled wine imports by supplying country**

+-----+---------+--------+--------+--------+--------+---------------+
| **  |         |        |        |        |        |               |
| Vol |         |        |        |        |        |               |
| ume |         |        |        |        |        |               |
| (   |         |        |        |        |        |               |
| 000 |         |        |        |        |        |               |
| he  |         |        |        |        |        |               |
| cto |         |        |        |        |        |               |
| lit |         |        |        |        |        |               |
| ers |         |        |        |        |        |               |
| )** |         |        |        |        |        |               |
+-----+---------+--------+--------+--------+--------+---------------+
| **  | **Co    | **     | **     | **     | **2002 | **　2003 six  |
| Ran | untry** | 2000** | 2001** | 2002** | S      | months        |
| k** |         |        |        |        | hare** | increase      |
|     |         |        |        |        |        | (decrease)    |
|     |         |        |        |        | **%**  | from 2002**   |
|     |         |        |        |        |        |               |
|     |         |        |        |        |        | **%**         |
+-----+---------+--------+--------+--------+--------+---------------+
| 1   | France  | 527.0  | 587.9  | 617.1  | 44     | (7.7)         |
+-----+---------+--------+--------+--------+--------+---------------+
| 2   | Italy   | 254.6  | 296.8  | 280.1  | 20     | (6.9)         |
+-----+---------+--------+--------+--------+--------+---------------+
| **  | *       | **1    | **1    | **1    | **10** | **22.9**      |
| 3** | *United | 53.5** | 54.8** | 48.2** |        |               |
|     | S       |        |        |        |        |               |
|     | tates** |        |        |        |        |               |
+-----+---------+--------+--------+--------+--------+---------------+
| 4   | Germany | 114.7  | 96.4   | 85.5   | 6      | (20.6)        |
+-----+---------+--------+--------+--------+--------+---------------+
| 5   | Chile   | 85.7   | 90.9   | 78.2   | 5      | (7.5)         |
+-----+---------+--------+--------+--------+--------+---------------+
| 6   | Spain   | 47.3   | 50.7   | 59.7   | 4      | (2.3)         |
+-----+---------+--------+--------+--------+--------+---------------+
| 7   | Au      | 51.3   | 45.2   | 48.2   | 3      | 2.0           |
|     | stralia |        |        |        |        |               |
+-----+---------+--------+--------+--------+--------+---------------+
| 8   | South   | 14.4   | 13.4   | 15.8   | 1      | 11.7          |
|     | Africa  |        |        |        |        |               |
+-----+---------+--------+--------+--------+--------+---------------+
|     | Others  | 34.1   | 30.8   | 27.2   | 2      | (9.3)         |
+-----+---------+--------+--------+--------+--------+---------------+
|     | Total   | 1      | 1      | 1      | 100    | (4.0)         |
|     |         | ,282.6 | ,366.9 | ,360.0 |        |               |
+-----+---------+--------+--------+--------+--------+---------------+

+-----+---------+--------+--------+--------+--------+---------------+
| *   |         |        |        |        |        |               |
| *Va |         |        |        |        |        |               |
| lue |         |        |        |        |        |               |
| (¥  |         |        |        |        |        |               |
| b   |         |        |        |        |        |               |
| ill |         |        |        |        |        |               |
| )** |         |        |        |        |        |               |
+-----+---------+--------+--------+--------+--------+---------------+
| **  | **Co    | **     | **     | **     | **2002 | **2003 six    |
| Ran | untry** | 2000** | 2001** | 2002** | S      | months        |
| k** |         |        |        |        | hare** | increase      |
|     |         |        |        |        |        | (decrease)    |
|     |         |        |        |        | **%**  | from 2002**   |
|     |         |        |        |        |        |               |
|     |         |        |        |        |        | **%**         |
+-----+---------+--------+--------+--------+--------+---------------+
| 1   | France  | 38.9   | 43.8   | 46.8   | 59     | 3.3           |
+-----+---------+--------+--------+--------+--------+---------------+
| 2   | Italy   | 9.0    | 11.4   | 12.4   | 15     | 4.8           |
+-----+---------+--------+--------+--------+--------+---------------+
| **  | *       | *      | *      | *      | **8**  | **2.1**       |
| 3** | *United | *6.3** | *6.7** | *6.6** |        |               |
|     | S       |        |        |        |        |               |
|     | tates** |        |        |        |        |               |
+-----+---------+--------+--------+--------+--------+---------------+
| 4   | Germany | 3.9    | 3.6    | 3.5    | 4      | (5.3)         |
+-----+---------+--------+--------+--------+--------+---------------+
| 5   | Chile   | 3.1    | 3.7    | 3.3    | 4      | (14.5)        |
+-----+---------+--------+--------+--------+--------+---------------+
| 6   | Au      | 2.0    | 1.8    | 2.1    | 2      | 7.6           |
|     | stralia |        |        |        |        |               |
+-----+---------+--------+--------+--------+--------+---------------+
| 7   | Spain   | 1.7    | 1.8    | 2.0    | 2      | 8.5           |
+-----+---------+--------+--------+--------+--------+---------------+
|     | Others  | 2.1    | 2.2    | 2.1    | 2      | (3.2)         |
+-----+---------+--------+--------+--------+--------+---------------+
|     | Total   | 67.0   | 75.0   | 78.8   | 100    | 2             |
+-----+---------+--------+--------+--------+--------+---------------+

Source: World Trade Atlas, based on Japan Customs data (CY January -
December).

**Table 3: Sparkling wine imports by supplying country**

+-----+---------+--------+---------+---------+--------+---------------+
| **  |         |        |         |         |        |               |
| Vol |         |        |         |         |        |               |
| ume |         |        |         |         |        |               |
| (   |         |        |         |         |        |               |
| 000 |         |        |         |         |        |               |
| he  |         |        |         |         |        |               |
| cto |         |        |         |         |        |               |
| lit |         |        |         |         |        |               |
| ers |         |        |         |         |        |               |
| )** |         |        |         |         |        |               |
+-----+---------+--------+---------+---------+--------+---------------+
| **  | **Co    | **     | *       | *       | **2002 | **2003 six    |
| Ran | untry** | 2000** | *2001** | *2002** | S      | months        |
| k** |         |        |         |         | hare** | increase      |
|     |         |        |         |         |        | (decrease)    |
|     |         |        |         |         | **%**  | from 2002**   |
|     |         |        |         |         |        |               |
|     |         |        |         |         |        | **%**         |
+-----+---------+--------+---------+---------+--------+---------------+
| 1   | France  | 45.4   | 52.8    | 55.1    | 42     | 2.6           |
+-----+---------+--------+---------+---------+--------+---------------+
| 2   | Italy   | 27.3   | 35.6    | 39.7    | 31     | (9.2)         |
+-----+---------+--------+---------+---------+--------+---------------+
| 3   | Spain   | 21.0   | 20.4    | 20.6    | 16     | (6.7)         |
+-----+---------+--------+---------+---------+--------+---------------+
| **  | *       | *      | **6.3** | **7.6** | **6**  | **(36.9)**    |
| 4** | *United | *5.5** |         |         |        |               |
|     | S       |        |         |         |        |               |
|     | tates** |        |         |         |        |               |
+-----+---------+--------+---------+---------+--------+---------------+
| 5   | Germany | 5.1    | 6.1     | 6.6     | 5      | (11.8)        |
+-----+---------+--------+---------+---------+--------+---------------+
| 6   | Au      | 1.5    | 2.2     | 2.4     | 2      | 3.0           |
|     | stralia |        |         |         |        |               |
+-----+---------+--------+---------+---------+--------+---------------+
|     | Others  | 1.1    | 0.8     | 1.1     | 1      | 57.5          |
+-----+---------+--------+---------+---------+--------+---------------+
|     | Total   | 106.9  | 124.2   | 133.1   | 100    | (3.2)         |
+-----+---------+--------+---------+---------+--------+---------------+

+-----+---------+--------+---------+---------+--------+---------------+
| *   |         |        |         |         |        |               |
| *Va |         |        |         |         |        |               |
| lue |         |        |         |         |        |               |
| (¥  |         |        |         |         |        |               |
| b   |         |        |         |         |        |               |
| ill |         |        |         |         |        |               |
| )** |         |        |         |         |        |               |
+-----+---------+--------+---------+---------+--------+---------------+
| **  | **Co    | **     | *       | *       | **2002 | **2003 six    |
| Ran | untry** | 2000** | *2001** | *2002** | S      | months        |
| k** |         |        |         |         | hare** | increase      |
|     |         |        |         |         |        | (decrease)    |
|     |         |        |         |         | **%**  | from 2002**   |
|     |         |        |         |         |        |               |
|     |         |        |         |         |        | **%**         |
+-----+---------+--------+---------+---------+--------+---------------+
| 1   | France  | 11.5   | 13.4    | 14.2    | 78     | 15.9          |
+-----+---------+--------+---------+---------+--------+---------------+
| 2   | Italy   | 1.3    | 1.7     | 2.1     | 11     | (4.7)         |
+-----+---------+--------+---------+---------+--------+---------------+
| 3   | Spain   | 1.1    | 1.0     | 1.1     | 6      | (8.7)         |
+-----+---------+--------+---------+---------+--------+---------------+
| **  | *       | *      | **0.3** | **0.3** | **2**  | **(28.1)**    |
| 4** | *United | *0.3** |         |         |        |               |
|     | S       |        |         |         |        |               |
|     | tates** |        |         |         |        |               |
+-----+---------+--------+---------+---------+--------+---------------+
| 5   | Germany | 0.2    | 0.3     | 0.3     | 2      | 16.6          |
+-----+---------+--------+---------+---------+--------+---------------+
|     | Others  | 0.2    | 0.2     | 0.2     | 1      | 11.2          |
+-----+---------+--------+---------+---------+--------+---------------+
|     | Total   | 14.6   | 16.9    | 18.2    | 100    | 12.2          |
+-----+---------+--------+---------+---------+--------+---------------+

Source: World Trade Atlas, based on Japan Customs data (CY January -
December).

## Table 4: Wine cooler imports by supplying country

+-----+---------+--------+---------+---------+--------+---------------+
| **  |         |        |         |         |        |               |
| Vol |         |        |         |         |        |               |
| ume |         |        |         |         |        |               |
| (   |         |        |         |         |        |               |
| 000 |         |        |         |         |        |               |
| he  |         |        |         |         |        |               |
| cto |         |        |         |         |        |               |
| lit |         |        |         |         |        |               |
| ers |         |        |         |         |        |               |
| )** |         |        |         |         |        |               |
+-----+---------+--------+---------+---------+--------+---------------+
| **  | **Co    | **     | *       | *       | **2002 | **2003 six    |
| Ran | untry** | 2000** | *2001** | *2002** | S      | months        |
| k** |         |        |         |         | hare** | increase      |
|     |         |        |         |         |        | (decrease)    |
|     |         |        |         |         | **%**  | from 2002**   |
|     |         |        |         |         |        |               |
|     |         |        |         |         |        | **%**         |
+-----+---------+--------+---------+---------+--------+---------------+
| **  | *       | **     | *       | *       | **64** | **25.5**      |
| 1** | *United | 16.1** | *21.7** | *29.5** |        |               |
|     | S       |        |         |         |        |               |
|     | tates** |        |         |         |        |               |
+-----+---------+--------+---------+---------+--------+---------------+
| 2   | Germany | 10.1   | 8.1     | 8.8     | 19     | (59.0)        |
+-----+---------+--------+---------+---------+--------+---------------+
| 3   | France  | 2.8    | 5.5     | 6.7     | 14     | 23.6          |
+-----+---------+--------+---------+---------+--------+---------------+
| 4   | T       | 0.4    | 0.5     | 0.5     | 1      | (35.3)        |
|     | hailand |        |         |         |        |               |
+-----+---------+--------+---------+---------+--------+---------------+
|     | Others  | 0.7    | 1.2     | 1.2     | 3      | 1177.1        |
+-----+---------+--------+---------+---------+--------+---------------+
|     | Total   | 30.1   | 37.0    | 46.7    | 100    | 34.5          |
+-----+---------+--------+---------+---------+--------+---------------+

+-----+---------+--------+---------+---------+--------+---------------+
| *   |         |        |         |         |        |               |
| *Va |         |        |         |         |        |               |
| lue |         |        |         |         |        |               |
| (¥  |         |        |         |         |        |               |
| b   |         |        |         |         |        |               |
| ill |         |        |         |         |        |               |
| )** |         |        |         |         |        |               |
+-----+---------+--------+---------+---------+--------+---------------+
| **  | **Co    | **     | *       | *       | **2002 | **2003 six    |
| Ran | untry** | 2000** | *2001** | *2002** | S      | months        |
| k** |         |        |         |         | hare** | increase      |
|     |         |        |         |         |        | (decrease)    |
|     |         |        |         |         | **%**  | from 2002**   |
|     |         |        |         |         |        |               |
|     |         |        |         |         |        | **%**         |
+-----+---------+--------+---------+---------+--------+---------------+
| **  | *       | *      | **0.4** | **0.7** | **50** | **7.7**       |
| 1** | *United | *0.4** |         |         |        |               |
|     | S       |        |         |         |        |               |
|     | tates** |        |         |         |        |               |
+-----+---------+--------+---------+---------+--------+---------------+
| 2   | France  | 0.1    | 0.3     | 0.4     | 31     | 28.5          |
+-----+---------+--------+---------+---------+--------+---------------+
| 3   | Germany | 0.2    | 0.2     | 0.2     | 15     | (48.6)        |
+-----+---------+--------+---------+---------+--------+---------------+
| 4   | Italy   | \*     | \*      | \*      | 1      | (43.8)        |
+-----+---------+--------+---------+---------+--------+---------------+
|     | Others  | \*     | \*      | \*      | 2      | 526.9         |
+-----+---------+--------+---------+---------+--------+---------------+
|     | Total   | 0.7    | 0.9     | 1.3     | 100    | 17.4          |
+-----+---------+--------+---------+---------+--------+---------------+

\*: Less than 0.05.

Source: World Trade Atlas, based on Japan Customs data (CY January -
December).

**Table 5: Bulk wine imports by supplying country**

+-----+---------+--------+--------+---------+-------+---------------+
| **  |         |        |        |         |       |               |
| Vol |         |        |        |         |       |               |
| ume |         |        |        |         |       |               |
| (   |         |        |        |         |       |               |
| 000 |         |        |        |         |       |               |
| he  |         |        |        |         |       |               |
| cto |         |        |        |         |       |               |
| lit |         |        |        |         |       |               |
| ers |         |        |        |         |       |               |
| )** |         |        |        |         |       |               |
+-----+---------+--------+--------+---------+-------+---------------+
| **  | **Co    | **     | **     | *       | *     | **2003 six    |
| Ran | untry** | 2000** | 2001** | *2002** | *2002 | months        |
| k** |         |        |        |         | Sh    | increase      |
|     |         |        |        |         | are** | (decrease)    |
|     |         |        |        |         |       | from 2002**   |
|     |         |        |        |         | **%** |               |
|     |         |        |        |         |       | **%**         |
+-----+---------+--------+--------+---------+-------+---------------+
| 1   | Ar      | 47.6   | 50.6   | 48.8    | 27    | (0.7)         |
|     | gentina |        |        |         |       |               |
+-----+---------+--------+--------+---------+-------+---------------+
| 2   | Chile   | 14.7   | 18.7   | 30.4    | 17    | 34.6          |
+-----+---------+--------+--------+---------+-------+---------------+
| 3   | B       | 56.2   | 28.4   | 30.0    | 17    | (40.5)        |
|     | ulgaria |        |        |         |       |               |
+-----+---------+--------+--------+---------+-------+---------------+
| 4   | France  | 12.3   | 9.7    | 15.5    | 9     | (45.7)        |
+-----+---------+--------+--------+---------+-------+---------------+
| 5   | Italy   | 6.2    | 6.5    | 12.6    | 7     | (36.1)        |
+-----+---------+--------+--------+---------+-------+---------------+
| 6   | Spain   | 14.8   | 14.4   | 7.4     | 4     | (7.6)         |
+-----+---------+--------+--------+---------+-------+---------------+
| 7   | South   | 19.3   | 9.6    | 7.0     | 4     | (38.0)        |
|     | Africa  |        |        |         |       |               |
+-----+---------+--------+--------+---------+-------+---------------+
| 8   | Ma      | 21.7   | 7.5    | 6.1     | 3     | 25.9          |
|     | cedonia |        |        |         |       |               |
+-----+---------+--------+--------+---------+-------+---------------+
| 9   | Hungary | 12.2   | 4.7    | 5.9     | 3     | (59.8)        |
+-----+---------+--------+--------+---------+-------+---------------+
| **1 | *       | **     | *      | **4.8** | **3** | **27.5**      |
| 0** | *United | 10.1** | *6.3** |         |       |               |
|     | S       |        |        |         |       |               |
|     | tates** |        |        |         |       |               |
+-----+---------+--------+--------+---------+-------+---------------+
| 11  | Romania | 19.2   | 13.5   | 4.6     | 3     | (50.0)        |
+-----+---------+--------+--------+---------+-------+---------------+
|     | Others  | 25.0   | 20.9   | 4.4     | 2     | (79.0)        |
+-----+---------+--------+--------+---------+-------+---------------+
|     | Total   | 259.3  | 190.8  | 177.5   | 100   | (13.5)        |
+-----+---------+--------+--------+---------+-------+---------------+

+-----+---------+--------+--------+---------+-------+---------------+
| *   |         |        |        |         |       |               |
| *Va |         |        |        |         |       |               |
| lue |         |        |        |         |       |               |
| (¥  |         |        |        |         |       |               |
| b   |         |        |        |         |       |               |
| ill |         |        |        |         |       |               |
| )** |         |        |        |         |       |               |
+-----+---------+--------+--------+---------+-------+---------------+
| **  | **Co    | **     | **     | *       | *     | **2003 six    |
| Ran | untry** | 2000** | 2001** | *2002** | *2002 | months        |
| k** |         |        |        |         | Sh    | increase      |
|     |         |        |        |         | are** | (decrease)    |
|     |         |        |        |         |       | from 2002**   |
|     |         |        |        |         | **%** |               |
|     |         |        |        |         |       | **%**         |
+-----+---------+--------+--------+---------+-------+---------------+
| 1   | Ar      | 0.4    | 0.5    | 0.4     | 21    | (17.9)        |
|     | gentina |        |        |         |       |               |
+-----+---------+--------+--------+---------+-------+---------------+
| 2   | Chile   | 0.2    | 0.3    | 0.3     | 16    | 19.9          |
+-----+---------+--------+--------+---------+-------+---------------+
| 3   | B       | 0.6    | 0.3    | 0.3     | 15    | (49.0)        |
|     | ulgaria |        |        |         |       |               |
+-----+---------+--------+--------+---------+-------+---------------+
| 4   | France  | 0.2    | 0.2    | 0.3     | 14    | (33.1)        |
+-----+---------+--------+--------+---------+-------+---------------+
| 5   | Italy   | 0.1    | 0.1    | 0.2     | 8     | (15.1)        |
+-----+---------+--------+--------+---------+-------+---------------+
| 6   | Spain   | 0.2    | 0.2    | 0.1     | 5     | (10.1)        |
+-----+---------+--------+--------+---------+-------+---------------+
| **  | *       | *      | *      | **0.1** | **4** | **32.7**      |
| 7** | *United | *0.2** | *0.2** |         |       |               |
|     | S       |        |        |         |       |               |
|     | tates** |        |        |         |       |               |
+-----+---------+--------+--------+---------+-------+---------------+
|     | Others  | 1.0    | 0.6    | 0.3     | 3     | (26.3)        |
+-----+---------+--------+--------+---------+-------+---------------+
|     | Total   | 2.9    | 2.4    | 2.0     | 100   | (18.9)        |
+-----+---------+--------+--------+---------+-------+---------------+

Source: World Trade Atlas, based on Japan Customs data (CY January -
December).

## Table 6: Grape must imports by supplying country

+-----+---------+-------+---------+---------+-------+---------------+
| **  |         |       |         |         |       |               |
| Vol |         |       |         |         |       |               |
| ume |         |       |         |         |       |               |
| (   |         |       |         |         |       |               |
| 000 |         |       |         |         |       |               |
| he  |         |       |         |         |       |               |
| cto |         |       |         |         |       |               |
| lit |         |       |         |         |       |               |
| ers |         |       |         |         |       |               |
| )** |         |       |         |         |       |               |
+-----+---------+-------+---------+---------+-------+---------------+
| **  | **Co    | **2   | *       | *       | *     | **2003 six    |
| Ran | untry** | 000** | *2001** | *2002** | *2002 | months        |
| k** |         |       |         |         | Sh    | increase      |
|     |         |       |         |         | are** | (decrease)    |
|     |         |       |         |         |       | from 2002**   |
|     |         |       |         |         | **%** |               |
|     |         |       |         |         |       | **%**         |
+-----+---------+-------+---------+---------+-------+---------------+
| 1   | Ar      | 44.9  | 50.1    | 49.5    | 82    | 3.8           |
|     | gentina |       |         |         |       |               |
+-----+---------+-------+---------+---------+-------+---------------+
| 2   | Chile   | 10.5  | 3.2     | 8.1     | 13    | 76.3          |
+-----+---------+-------+---------+---------+-------+---------------+
| 3   | South   | 4.0   | 3.3     | 3.0     | 5     | 149.1         |
|     | Africa  |       |         |         |       |               |
+-----+---------+-------+---------+---------+-------+---------------+
|     | Others  | 0.1   | \*      | 0.1     | \*\*  | \(100\)       |
+-----+---------+-------+---------+---------+-------+---------------+
|     | Total   | 59.5  | 56.6    | 60.7    | 100   | 18.7          |
+-----+---------+-------+---------+---------+-------+---------------+

+-----+---------+-------+---------+---------+-------+---------------+
| *   |         |       |         |         |       |               |
| *Va |         |       |         |         |       |               |
| lue |         |       |         |         |       |               |
| (¥  |         |       |         |         |       |               |
| b   |         |       |         |         |       |               |
| ill |         |       |         |         |       |               |
| )** |         |       |         |         |       |               |
+-----+---------+-------+---------+---------+-------+---------------+
| **  | **Co    | **2   | *       | *       | *     | **2003 six    |
| Ran | untry** | 000** | *2001** | *2002** | *2002 | months        |
| k** |         |       |         |         | Sh    | increase      |
|     |         |       |         |         | are** | (decrease)    |
|     |         |       |         |         |       | from 2002**   |
|     |         |       |         |         | **%** |               |
|     |         |       |         |         |       | **%**         |
+-----+---------+-------+---------+---------+-------+---------------+
| 1   | Ar      | 1.1   | 1.1     | 0.9     | 80    | (23.8)        |
|     | gentina |       |         |         |       |               |
+-----+---------+-------+---------+---------+-------+---------------+
| 2   | Chile   | 0.3   | 0.1     | 0.2     | 16    | 56.4          |
+-----+---------+-------+---------+---------+-------+---------------+
| 3   | South   | 0.1   | 0.1     | 0.1     | 5     | 115.5         |
|     | Africa  |       |         |         |       |               |
+-----+---------+-------+---------+---------+-------+---------------+
|     | Others  | \*    | \*      | \*      | 1     | (99.9)        |
+-----+---------+-------+---------+---------+-------+---------------+
|     | Total   | 1.5   | 1.3     | 1.2     | 100   | (7.3)         |
+-----+---------+-------+---------+---------+-------+---------------+

\*: Less than 0.05.

\*\*: Less than 1%.

Source: World Trade Atlas, based on Japan Customs data (CY January -
December).

**Table 7: Vermouth imports by supplying country**

+-----+---------+-------+---------+---------+-------+---------------+
| **  |         |       |         |         |       |               |
| Vol |         |       |         |         |       |               |
| ume |         |       |         |         |       |               |
| (   |         |       |         |         |       |               |
| 000 |         |       |         |         |       |               |
| he  |         |       |         |         |       |               |
| cto |         |       |         |         |       |               |
| lit |         |       |         |         |       |               |
| ers |         |       |         |         |       |               |
| )** |         |       |         |         |       |               |
+-----+---------+-------+---------+---------+-------+---------------+
| **  | **Co    | **2   | *       | *       | *     | **2003 six    |
| Ran | untry** | 000** | *2001** | *2002** | *2002 | months        |
| k** |         |       |         |         | Sh    | increase      |
|     |         |       |         |         | are** | (decrease)    |
|     |         |       |         |         |       | from 2002**   |
|     |         |       |         |         | **%** |               |
|     |         |       |         |         |       | **%**         |
+-----+---------+-------+---------+---------+-------+---------------+
| 1   | Spain   | 5.1   | 4.4     | 6.5     | 31    | (28.4)        |
+-----+---------+-------+---------+---------+-------+---------------+
| 2   | Italy   | 6.2   | 8.8     | 5.3     | 25    | 36.8          |
+-----+---------+-------+---------+---------+-------+---------------+
| 3   | China   | 4.8   | 4.6     | 3.3     | 16    | (29.6)        |
+-----+---------+-------+---------+---------+-------+---------------+
| **  | *       | **1   | **5.0** | **2.6** | *     | **(100)**     |
| 4** | *United | 1.7** |         |         | *12** |               |
|     | S       |       |         |         |       |               |
|     | tates** |       |         |         |       |               |
+-----+---------+-------+---------+---------+-------+---------------+
| 5   | France  | 4.6   | 3.6     | 2.4     | 11    | 24.1          |
+-----+---------+-------+---------+---------+-------+---------------+
| 6   | Germany | 0.0   | 0.3     | 0.8     | 4     | (22.0)        |
+-----+---------+-------+---------+---------+-------+---------------+
|     | Others  | 0.1   | 0.1     | 0.1     | 1     | (1.8)         |
+-----+---------+-------+---------+---------+-------+---------------+
|     | Total   | 32.5  | 26.8    | 21.0    | 1     | (19.2)        |
|     |         |       |         |         | 00.0% |               |
+-----+---------+-------+---------+---------+-------+---------------+

+-----+---------+-------+---------+---------+-------+---------------+
| *   |         |       |         |         |       |               |
| *Va |         |       |         |         |       |               |
| lue |         |       |         |         |       |               |
| (¥  |         |       |         |         |       |               |
| b   |         |       |         |         |       |               |
| ill |         |       |         |         |       |               |
| )** |         |       |         |         |       |               |
+-----+---------+-------+---------+---------+-------+---------------+
| **  | **Co    | **2   | *       | *       | *     | **2003 six    |
| Ran | untry** | 000** | *2001** | *2002** | *2002 | months        |
| k** |         |       |         |         | Sh    | increase      |
|     |         |       |         |         | are** | (decrease)    |
|     |         |       |         |         |       | from 2002**   |
|     |         |       |         |         | **%** |               |
|     |         |       |         |         |       | **%**         |
+-----+---------+-------+---------+---------+-------+---------------+
| 1   | Italy   | 0.2   | 0.3     | 0.2     | 31    | 41.5          |
+-----+---------+-------+---------+---------+-------+---------------+
| 2   | France  | 0.2   | 0.2     | 0.1     | 19    | 31.3          |
+-----+---------+-------+---------+---------+-------+---------------+
| 3   | Spain   | 0.1   | 0.1     | 0.1     | 19    | (23.2)        |
+-----+---------+-------+---------+---------+-------+---------------+
| 4   | China   | 0.1   | 0.1     | 0.1     | 17    | (12.2)        |
+-----+---------+-------+---------+---------+-------+---------------+
| **  | *       | **    | **0.1** | **0.1** | **9** | **(100)**     |
| 5** | *United | 0.3** |         |         |       |               |
|     | S       |       |         |         |       |               |
|     | tates** |       |         |         |       |               |
+-----+---------+-------+---------+---------+-------+---------------+
| 6   | Germany | \*    | \*      | \*      | 2     | (24.7)        |
+-----+---------+-------+---------+---------+-------+---------------+
|     | Others  | \*    | \*      | \*      | 1     | 0             |
+-----+---------+-------+---------+---------+-------+---------------+
|     | Total   | 0.9   | 0.8     | 0.6     | 100   | (6.3)         |
+-----+---------+-------+---------+---------+-------+---------------+

\*: Less than 0.05.

Source: World Trade Atlas, based on Japan Customs data (CY January -
December).

## Table 8: Sherry/fortified wine imports by supplying country

+-----+---------+-------+---------+---------+-------+---------------+
| **  |         |       |         |         |       |               |
| Vol |         |       |         |         |       |               |
| ume |         |       |         |         |       |               |
| (   |         |       |         |         |       |               |
| 000 |         |       |         |         |       |               |
| he  |         |       |         |         |       |               |
| cto |         |       |         |         |       |               |
| lit |         |       |         |         |       |               |
| ers |         |       |         |         |       |               |
| )** |         |       |         |         |       |               |
+-----+---------+-------+---------+---------+-------+---------------+
| **  | **Co    | **2   | *       | *       | *     | **2003 six    |
| Ran | untry** | 000** | *2001** | *2002** | *2002 | months        |
| k** |         |       |         |         | Sh    | increase      |
|     |         |       |         |         | are** | (decrease)    |
|     |         |       |         |         |       | from 2002**   |
|     |         |       |         |         | **%** |               |
|     |         |       |         |         |       | **%**         |
+-----+---------+-------+---------+---------+-------+---------------+
| 1   | P       | 4.4   | 4.9     | 4.2     | 50    | 6.9           |
|     | ortugal |       |         |         |       |               |
+-----+---------+-------+---------+---------+-------+---------------+
| 2   | Spain   | 2.5   | 2.8     | 2.9     | 34    | (29.2)        |
+-----+---------+-------+---------+---------+-------+---------------+
| 3   | Italy   | 1.0   | 1.0     | 0.9     | 11    | (3.4)         |
+-----+---------+-------+---------+---------+-------+---------------+
| 4   | France  | 0.1   | 0.2     | 0.4     | 4     | 65.3          |
+-----+---------+-------+---------+---------+-------+---------------+
| **  | *       | **    | **0.3** | **0.2** | **2** | **112.0**     |
| 5** | *United | 0.3** |         |         |       |               |
|     | S       |       |         |         |       |               |
|     | tates** |       |         |         |       |               |
+-----+---------+-------+---------+---------+-------+---------------+
|     | Others  | 0.1   | 0.3     | 0.1     | 1     | 7.7           |
+-----+---------+-------+---------+---------+-------+---------------+
|     | Total   | 8.4   | 9.5     | 8.7     | 100   | (0.1)         |
+-----+---------+-------+---------+---------+-------+---------------+

+-----+---------+-------+---------+---------+-------+---------------+
| *   |         |       |         |         |       |               |
| *Va |         |       |         |         |       |               |
| lue |         |       |         |         |       |               |
| (¥  |         |       |         |         |       |               |
| b   |         |       |         |         |       |               |
| ill |         |       |         |         |       |               |
| )** |         |       |         |         |       |               |
+-----+---------+-------+---------+---------+-------+---------------+
| **  | **Co    | **2   | *       | *       | *     | **2003 six    |
| Ran | untry** | 000** | *2001** | *2002** | *2002 | months        |
| k** |         |       |         |         | Sh    | increase      |
|     |         |       |         |         | are** | (decrease)    |
|     |         |       |         |         |       | from 2002**   |
|     |         |       |         |         | **%** |               |
|     |         |       |         |         |       | **%**         |
+-----+---------+-------+---------+---------+-------+---------------+
| 1   | P       | 0.4   | 0.4     | 0.3     | 53    | 22.0          |
|     | ortugal |       |         |         |       |               |
+-----+---------+-------+---------+---------+-------+---------------+
| 2   | Spain   | 0.2   | 0.2     | 0.2     | 31    | (13.3)        |
+-----+---------+-------+---------+---------+-------+---------------+
| 3   | France  | \*    | \*      | \*      | 7     | 74.0          |
+-----+---------+-------+---------+---------+-------+---------------+
| 4   | Italy   | \*    | \*      | \*      | 6     | 38.8          |
+-----+---------+-------+---------+---------+-------+---------------+
| **  | *       | *     | **\***  | **\***  | **1** | **63.8**      |
| 5** | *United | *\*** |         |         |       |               |
|     | S       |       |         |         |       |               |
|     | tates** |       |         |         |       |               |
+-----+---------+-------+---------+---------+-------+---------------+
|     | Others  | \*    | \*      | \*      | 1     | 44.0          |
+-----+---------+-------+---------+---------+-------+---------------+
|     | Total   | 0.6   | 0.6     | 0.5     | 100   | 17.2          |
+-----+---------+-------+---------+---------+-------+---------------+

\*: Less than 0.05.

Source: World Trade Atlas, based on Japan Customs data (CY January -
December).