Voluntary Report - public distribution

**Date:** 3/3/2004

**GAIN Report Number:** JA4509

JA4509

**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: Drug store chains such as *Matsumoto Kiyoshi*, plan to expand
sales of food and beverages; *Yoshinoya* says sales began to recover in
January following the ban on U.S. beef imports in December; *Dai-ichi
Life Research Institute Inc.* says Japan's GDP may eventually be
negatively impacted by a prolonged ban on beef imports; *Tonyu*
(soymilk) enjoys the number one product market ranking in Japan and; In
advance of any reported human infection resulting from avian influenza,
Japan's Ministry of Health, Labor, and Welfare (MHLW), prepares to
prevent any wide-spread outbreak similar to that elsewhere in Asia.

Includes PSD Changes: No

Includes Trade Matrix: No

Unscheduled Report

Tokyo ATO \[JA2\]

\[JA\]

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

> *Periodic Press Translations from ATO Tokyo Vol IV, Issue 44 January
> 15-31, 2004*

####### Retail/Wholesale

-   *Seiyu Group*, now a subsidiary of *Wal-Mart Stores*, plans to
    recruit 1,500-1,600 staff to accept voluntary early retirement as
    part of the *Seiyu*'s five-year restructuring plan. (b 1/20)

-   The number of drug stores is increasing this year reflecting growing
    consumer awareness in health. The total number of stores planned to
    open in 2004 will exceed 300 for the six major drug stores, which is
    an increase of 10% compared to last year. The largest chain
    *Matsumoto Kiyoshi* plans to sell not only pharmaceuticals and
    cosmetic products but also foods such as *bento* lunch boxes, bread,
    snack, and beverages. The industry is also considering the
    introduction of new offering and services such as selling books and
    setting up a courier services counter. Because of a recent
    government deregulation, convenience stores will sell some
    pharmaceutical products by the end of this year and, competition
    between the two types of retailers is expected to intensify. (a
    1/31)

> *ATO Comments: According to the Japan Chain Drug Store Association,
> the total number of stores increased by 20% in three years, and the
> market size of the drug store industry grew by 30% in two years. With
> the overall increasing trend on nutrition and health, drug store
> chains may continue to be an ideal place for supplements and also some
> functional foods.*

######## Food Service

-   *Yoshinoya D&C*, the number one operator of a *gyudon* beef bowl
    restaurant chain, said that customers dropped 15% immediately after
    the BSE case was first reported in the U.S., and that total sales in
    December 2003 fell by 9.3% compared to the same month of the
    previous year on a same-store basis. However, since the second week
    of January, customer traffic has recovered, exceeding year-earlier
    figures. *Yoshinoya* says that beef bowl demand remains strong, with
    only 10% or so of its customers ordering the curry dish, which is
    now made available at all stores. Other beef bowl chain operators
    such as *Matsuya* and *Nakau* experienced a fall in same-store
    sales, while *Zensho* showed no impact from BSE so far. Beef bowl
    chain operators are all beginning to introduce new non-beef bowl
    menus. (a 1/15)

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

-   According to the *Dai-ichi Life Research Institute Inc.*, if the ban
    on imported U.S. beef continues throughout 2004, it will likely push
    down the Japanese GDP by 0.05% (about 240 billion yen). (Asahi 1/17)

-   According to the best-selling products survey in 2003 by the Nihon
    Economic Newspaper, healthy products such as supplemental sports
    drinks, *Natto* sticky bean products, and black bean cocoa ranked
    high in the list. Also, value-added snack products scored high with
    consumer preferences as exhibited by sales. (b 1/31)

-   According to the best-selling products survey in 2003 by the Nihon
    Economic Newspaper, *Haagen-Dazs*'s mini-size cup ice cream
    dominated the top three rankings in the frozen food category. Its
    "Mini-cup Adzuki-bean" ice cream was the best-selling product,
    obviously doing well to appeal to the Japanese consumer's taste
    preference. (b 1/31)

-   According to the best growing industry survey in 2003 by the Nihon
    Economic Newspaper, the *tonyu* soymilk market product ranked number
    one, enjoying an 80% increase for both soymilk and nutritionally
    enhanced soymilk products compared to the previous year. For
    example, *Otsuka Pharmaceutical*'s "Sugoi Daizu", a nutritionally
    enhanced soymilk product has been a big hit ever since it was
    introduced last February. More manufacturers are introducing soymilk
    products reflecting the Japanese consumer's growing health
    consciousness. (b 1/31)

-   According to the best growing industry survey in 2003 by the Nihon
    Economic Newspaper, four out of the top ten markets in the home
    products category was related to pet food. In particular,
    health-related pet food products such as supplemental and diet food
    are selling well. (b 1/31)

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

-   Japan's Agriculture Ministry (MAFF) temporarily banned the imports
    of chicken meat and processed chicken products from Thailand on
    January 22 due to the detection of avian influenza. Retailers
    removed all Thai chicken products off the shelves as soon as the
    measure was announced, and are already looking for substitute
    suppliers. Broiler chicken from Thailand accounts for 10% of all
    broiler imports in Japan, and the impact of the measure is likely to
    spread through the Japanese food industry. (b 1/24)

-   MAFF announced on January 27 that it has banned chicken meat imports
    from China following the reports of an outbreak of avian influenza
    there. China is the third-largest chicken meat exporter to Japan,
    and the import ban on chicken meat from China is expected to have a
    considerable impact on the Japanese chicken market, as imports from
    Thailand, the largest exporter to Japan, have been suspended since
    the previous week. (a 1/27)

-   In order to prevent any unchecked infection of the avian influenza
    to humans, such as that which is rampant in other Asian countries,
    Japan's Ministry of Health, Labor, and Welfare issued a standards
    manual on January 30 for health authorities to respond quickly if a
    human case of the virus occurs. (a 1/31)

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

-   *Carrefour Japan* plans to open two more stores, one in the Eastern
    part and the other in the Western part of Japan, by December 2004,
    bringing the total number of stores to 10. (b 1/29)

** 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.