Voluntary Report - public distribution

**Date:** 2/13/2004

**GAIN Report Number:** JA4505

JA4505

**Japan**

**Market Development Reports**

**Food Business Line**

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

**2004**

**Approved by:**

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

ATO Tokyo

**Prepared by:**

Akiko Matsuyoshi, Marketing Clerk

**Report Highlights:**

From America's largest overseas food and agricultural export market as
translated from Japan's mass media and food industry news. This issue
includes: *Aeon* is preparing to increase its Tasmanian meat production
from its privately held feedlot in Australia; Food service operators
rush to deal with beef shortages resulting from the import ban on U.S.
beef; The cost of replacing U.S. beef with Australian beef is
increasing; *Ajinomoto* and other Japanese food manufacturers in the
health food market are expanding their business in the United States;
For the first time in 79 years, chickens in Japan were found infected
with avian influenza.

Includes PSD Changes: No

Includes Trade Matrix: No

Unscheduled Report

Tokyo ATO \[JA2\]

\[JA\]

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

**Food Business Line**

> *Periodic Press Translations from ATO Tokyo Vol IV, Issue 43 January
> 1-15, 2004*

###### Retail/Wholesale

-   *Aeon* is preparing to increase the production of its private brand
    product of Tasmanian beef. This is being done following the USDA
    surveillance system's detection of one BSE-positive cow from Canada,
    and the resulting epidemiological investigation. *Aeon* currently
    has 13,000 cows on a farm in Australia, directly under its
    ownership. (b 1/13)

####### Food Service

-   Food service operators are rushing to come up with emergency
    measures to deal with the lack of beef following the import ban on
    U.S. beef. For example, a major pub dining chain operator *Colowide*
    stopped offering some of its menu items using U.S. chilled beef.
    About 80% of its beef was from the U.S., but *Colowide* plans to
    switch to Australian beef at the same price. *Origin Toshu*, a
    *nakashoku* (deli) manufacturer says it had secured U.S. beef until
    the end of March, but nevertheless prepares to switch to Australian
    beef. It also plans to introduce non-beef menus using chicken. (b
    1/8)

-   "Nathan's Famous", which just opened in December, is already facing
    difficulties due to import ban of processed beef products including
    sausages. According to *Nathan's*, overall customer traffic is not
    much affected so far, but it will consider changing to Japanese or
    Australian beef sausages in the near future. (b 1/8)

-   *Volks*, a steak restaurant chain affiliated with *Daiei*, plans to
    switch its beef ingredients from U.S. to Australian and raise the
    price by 15% starting from February. U.S. beef accounted for 54% of
    *Volks*' sales, followed by Australian beef at 44% and domestic beef
    at 2%, but its inventory of U.S. beef is likely to run out by the
    end of January. (b 1/13)

> *ATO Note: In discussions between ATO Tokyo and its food service
> clients, most are not having any problems continuing to sell the
> remaining U.S. beef on their menus. However, certain consumer
> segments, like housewives or business groups have inquired about the
> beef served at an establishment. Generally, Tokyo's salary men have
> had no problem consuming the remaining U.S. beef in all of the beef
> bowl restaurants.*

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

-   Major Japanese food manufacturers are planning to expand their own
    business operations in the U.S. health food market by introducing
    healthy beverages that have been successful in Japan. For example,
    since *Ito En* set up office in New York in 2001, they installed
    heated display cases in at about 170 organic food shops and other
    stores in order to sell warm green tea, oolong tea, and jasmine tea
    in plastic bottles. *Ajinomoto* also plans to expand sales of its
    "Amino Vital" sport nutritional drink by expanding product lineup
    and launching online sales. *Calpis* began selling its "Ameal S", a
    dietary supplement that helps maintain healthy blood pressure, in
    the U.S. in autumn 2003. *Kagome* plans to strengthen sales of its
    vegetable juices. (a 1/7)

-   Food manufacturers are starting to sell beverages that contain
    antibodies to help relieve symptoms of hay fever and allergy. For
    example, *Calpis* plans to sell three types of health drinks called
    "Inter-balance" that contain L-92, a lactic acid bacterium
    discovered by *Calpis* that is said to be an antibody against
    allergies. *Japan Coca-Cola* plans to sell a drink that contains
    mint polyphenol that is said to have relieving effect to allergic
    symptoms such as runny nose and sneezes, according to the Okayama
    University research team. *Kikkoman* also plans to sell a drink
    containing polyphenol derived from tomato peel. (a 1/9)

-   Total sales of beer and *happoshu* low-malt beer products in 2003
    declined by 7.6% for both *Kirin Brewery* and *Suntory*, compared to
    the previous year. It is mainly due to unseasonably cold summer and
    tax increase for *happoshu* products. (a 1/9)

# Food Safety/Consumer Awareness

-   Japan's Agriculture Ministry (MAFF) announced that it will
    strengthen place-of-origin labeling regulation, abolishing the
    current exceptional regulation that allows imported beef to be
    labeled as Japan if it was raised in Japan for a period exceeding
    three months. MAFF plans to introduce a new JAS system this summer
    for all livestock animals that make it compulsory to label the
    region where it was raised for the longest period. (b 1/6)

-   For the first time in 79 years, chickens in Japan were found
    infected with avian influenza. About 6,000 infected chickens at a
    poultry farm in Yamaguchi Prefecture died so far. The Agriculture
    Ministry banned shipments of chickens and eggs from the farm while
    culling all chickens at about 30 farms nearby. The disease was
    caused by a H5 virus that belonged to the same class as the H5N1
    virus, which triggered an outbreak of the avian influenza in South
    Korea last year. (a 1/13)

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

-   *Interbrew*, a Belgium beer company opened its first beer restaurant
    in Asia called the "Belgium Beer Café Barrel". The new restaurant
    opened its doors in Osaka last December. (b 1/8)

-   Following the import ban of U.S. beef, the price of Australian beef
    has been rising sharply in Japan. The wholesale price in Tokyo
    market went up about 40% for the index products of Australian beef.
    Increased demand for seafood and poultry products as substitutes for
    beef are also resulting in higher costs for these inputs. (b 1/8)

** Sources **

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

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

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

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