Kobe Shu-Shin-Kan Breweries, Ltd.
Corporate Profile

A sake brewery that creates the future of food,agriculture, and local communities

https://www.shushinkan.co.jp

https://www.enjoyfukuju.com

Sustainability Journey

CSR Report

Kobe Shu-Shin-Kan Breweries, Ltd.
1-8-17 Mikagetsuka-machi, Higashinada-ku, Kobe-shi 658-0044

Month of publication: August 2019

First StageProduction that keeps an eye on nature and people
Kobe Shu-Shin-Kan contributes to society by creating sake and its culture,
while pursuing the best quality and following the Nada region’s traditions of sake-making.

Kobe Shu-Shin-Kan is a complex which is composed of four
brewhouses.
The “Fukuju” brewery, where “Fukuju” sake is brewed,
the “Suimei” brewhouse, where the luxurious cellar restaurant“Sakabayashi” is located, the “Toumyou” brewhouse, which
serves as our brewery shop, and the “Houmei” brewhouse (ShuShin-Kan Hall), which serves as a multipurpose hall.
These are broadly classified into the three businesses i.e.
brewery, restaurant, and sightseeing.
Hand in hand with our customers, we are aiming at regional
development by brewing sake and sharing seasonal cuisine, on
the basis of local production and consumption.

Outline of our business
Brewery businessRestaurant business

Sightseeing business

Fukuju brewery

Suimei brewhouse(Sakabayashi)

Toumyou brewhouse(Brewery shop)

Houmei brewhouse(Shu-Shin-Kan Hall)

We offer banquet-style dining which can

We offer sake fresh from the brewery.

We hold music concerts.

be enjoyed with sake.

We offer dishes that go well with sake,

We hold performances such as classicalWe hold events where one can enjoy

which are delivered from all overentertainment.

sake and dishes.

Japan.

We offer our sake “Fukuju.”

Origin of our sake’s nameCompany profile

The brand name of “Fukuju” comes from

Company name

Kobe Shu-Shin-Kan Breweries, Ltd.

the god “Fukurokuju,” who is one of theRepresentative
Director

Representative director andpresident Takenosuke Yasufuku

Location(head office)1-8-17 Mikagetsuka-machi,
Higashinada-ku, Kobe-shi

Year ofincorporation

May 1996

Start of business

1751

Capital stock

60 million yen

Number of
employees

49 people
37 males, 12 females(As of the end of June 2019)

Seven Lucky Gods in Japanese mythology.
We wish for the good fortune of everyone
who enjoys our sake.
Since 2008, our Fukuju Junmaiginjo
has been chosen as the sake for thebanquet dinner of the Nobel Prize.

1

Message from the president

Rokko Terroir

Sake making with the strength of the Rokko region
The coastline of the Nada region in Kobe, where Kobe Shu-Shin-Kan
is located, is dotted with sake breweries. The Rokko mountains in
Hyogo have contributed greatly to the development of this region's
sake breweries.
The claylike soil of the mountain range was formed through theweathering of granite. Especially in Ura-Rokko, which is on the northside of the mountain range, there is a large amount of nutrients which
are necessary for plants to grow, and this has contributed greatly
to the region’s status as a rice producer. In addition, in Ura-Rokko,
the climate is mild, with plenty of sunshine and little precipitation,
while there is a significant difference between daytime and nighttime
temperatures. These conditions are just about perfect for the productionof sake rice - thus making this region the home of 80% of Japan's
production of “Yamada Nishiki” rice, so-called king of sake rice.
Furthermore, miyamizu, which is the underground water from the
Rokko mountains, originates from rainwater which flows through thegranite of the mountains. Thus, this water is full of minerals such as
phosphorous and potassium, which feed the yeast in the sake-making
process.
Three of these underground water sources come together at thesame spring. As a result, a miraculous phenomenon takes place. The
oxygen resulting from the combination of these three water sources
works to ensure that iron, which can have a harmful effect on the tasteof sake, has minimal effects. Therefore, this water is ideal for the
making of sake.
At Kobe Shu-Shin-Kan, we use rice produced in Hyogo Prefecture,
the most prominent being the Yamada Nishiki rice, which we havereaped through the village rice system*1, in addition to utilizing
miyamizu water.
Just as the concept called “terroir” which describes all theenvironments of wine grapes to determine the taste and quality ofwine, at Kobe Shu-Shin-Kan, we are thankful for the Rokko region’s
superior terroir which is a blessing to create high-quality sake.

New traditions created through handed-down practices
and innovations
The essence of sake brewing is the combination of technology with theforces of nature and life.
The continuation and development of sake brewing are
indispensable for understanding Japan's history, traditions, culture etc.
Furthermore, sake brewing forms the foundation for the positive future
development of culture.
Kobe Shu-Shin-Kan will continue to pursue such ideals by
combining passed-down traditions and new innovations.
I myself believe that we can create new traditions if we continue topass down our time-tested methods to future generations in addition to
being flexible and making new innovations to meet the demands of thetimes.
In 1973, we developed the first freezing technology in Japan forsake production, and began to sell frozen sake so that the youthful taste
can be enjoyed for as long as one wants.
With the retirement of our touji*2 (chief brewer) in 2007, we began
to make sake produced by our employees only. For our production ofhigh-quality daiginjo sake, by adopting an innovative method which
entails making koji mold in a tub, we are able to make koji in an
ideal fashion. Our ideal of a combination of tradition and innovation
also means that we wish all our brewery workers to possess the sameskills as a chief brewer. To accomplish this ideal, we are making highquality sake which is imbued with the spirit of the handicraft of sakemaking which has been passed down for countless years, in addition tobuilding up know-how from daily studies.
Our products which we have created through the combination of
tradition and innovation are recognized in many different fields. For
instance, at the National Research Institute of Brewing's National Sake
Review, we have won the gold prize five years in a row and 17 times
in total. In 2008, the banquet dinner of the Nobel Prize Committee,
held in Stockholm, Sweden, gave us the honor of serving our Fukuju
Junmaiginjo for the first time.

Development of a local industry through thecontribution of the sake business
Takenosuke Yasufuku
Representative Director andPresident

Sake-brewing that creates new traditions with repeated
innovations and handed-down practices, while receiving
the bounty of the Rokko mountains
2

From the standpoint of sake brewers like ourselves, we think that
regional revitalization through the development of local industries
can stir demand for sake, create sustainable tourism in industrial or
business areas, develop agricultural brands, and contribute to thesustainable development of agriculture.

Yamada Nishiki

Making koji mold

Increased demand for sake will lead to more sales, and creating
sustainable tourism will lead to increased tourists and increased
consumption by tourists. Development of agricultural brands will
create more added value, and the sustainable development ofagriculture will create stable incomes for those involved. Moreover,positive ripple effects can be expected in many other areas from such
efforts.
In the end, drinking sake is an act of local consumption of local
production. Aiming to become an innovative sake brewery which is
loved by its neighbors in the region, we want to contribute to the local
production for local consumption with our customers.

Aiming at sustainable sake production
For the first time, we are publishing a report, entitled “Sustainability
Journey,” which details our company's sustainable practices.
As the title states, we have decided to embark on a journey ofsustainability. While we have worked on countless environmentoriented initiatives up to this point, we must admit that many of suchinitiatives did not have clear goals.
Just as there are always social challenges, we think that there arealso always sustainable methods with which we can contribute tosociety through our business. Furthermore, we think that we can makeour initiatives more effective than ever by making our goals clear andcreating values towards future alongside coming up with solutions tochallenges.
We are constantly aiming at regional development through theidea of “Production that keep an eye on nature and people,” based on
local production for local consumption. At times, we may adopt newtechnologies which may be unheard of in the sake brewing industry,
and we may attempt to take up revolutionary innovations. This isbecause it is our philosophy to create circulatory systems which reuse
resources from the Rokko ecosystem which provides us with so muchbounty.
Treasuring our deep bonds with local communities, we willcontinue activities which strengthen our business’ affinity with ourneighbors. Furthermore, we will continue to focus our efforts on being
an exemplary brewery for sustainable sake production. From thebottom of our hearts, we wish for your continued support.

*1 Village rice system: A sake rice trading system which is established between brewers who desire
to produce high-quality sake rice and farmers who desire to deal with loyal clients*2 Touji: The chief brewer - the person in charge of everything in the sake brewing process

Miyamizu
Brewery workers(high-quality water for sake brewing)

3

ACTION

Creating a sustainable system for sake brewing

ACTION01

ACTION03

ACTION

applying an electrostatic coating to recyclable clear bottles, we have been

06

able to maintain the performance of our old bottles. Thus, 450,000 bottles

System for the stable production of high-quality sake

Care for environmental protection and biodiversity

Proactive introduction of the water-saving technology

With the retirement of our chief brewer in 2007, we began to make sake

Just one drop of Fukuju, which is a combination of the water, soil, wind,

We are moving forward with water-saving initiatives, such as the introduction

produced by employees only.

and harvest of the Rokko mountains, is the crystallization of the Rokkoof water-saving equipment which utilizes jet bubble rice washing technology,

mountains’ blessing. Expressing our appreciation for this irreplaceable

and the recycling of some of the water used to wash bottles.

Previously, the temperature control of each step and the monitoring ofoperations such as water circulation were left up to the experience and skill of

nature, we donate a portion of our sales of our Fukuju Junmai sakeour veteran chief brewer, but given that our chief brewer was getting old and“Mikagegou” to the Hyogo Greenery Promotion Association to support

we had successor issues, we made such decision, in order to keep producing

environmental conservation activities in the Rokko mountains.

high-quality sake.

per year have become recyclable.

During seven years since 2010, while tripling our production output,
our water usage has only increased by 35%.

Additionally, as a company

In order to improve the brewing skills of our employees, we recorded

which supports local agriculture,quantitative data of all of our chief brewer’s work, and made arrangements soa portion of the sales of ourthat there would be no mistakes no matter who was in charge of which step.

“Fukuju special junmai stork-

We aimed to reproduce the skills of our chief brewer. By collecting data, today,

supporting rice Koshihikari”

it is possible for us to remotely control our brewing processes with monitoringis donated to the Stork Fund insystem using smartphone. As a result, operating ratios of our equipment haveToyooka, Hyogo Prefecture,

improved year-round, and we have also been able to reduce our energy usage.

which supports the reintroduction

Additionally, we were able to abolish overtime and late-night and early-of storks into the ecosystem.

morning shifts, and were able to improve the way we work during the brewing

Fukuju Junmaiginjo bottles with electrostatic coating

ACTION
Presentation of a letter of appreciation from theHyogo Greenery Promotion Association

productivity through the installation of

Scene of rice washing with jet bubbles

cutting-edge equipment

process. Today, our veteran brewers teach our young employees, and we havebeen able to create a highly favorable brewing environment.
Regarding our know-how for energy conservation for the factory, we
cooperate with companies with extensive knowledge of environmental
management and jointly conduct diagnoses for energy conservation.

08

Increased environmental sustainability andThrough the adoption of measures, such as the making of koji in tubs
ACTION

04

Care for the safety of our customers, our employees,
and local residents

ACTIONand high-temperature saccharification that can take full advantage of the07

qualities of yeast with homogeneous activity, in addition to our employees’

Bottle recyclingemphasis on quality and innovation, we were able to greatly increase ourIn addition to being an important factor for improving the value of our

production output. On the other hand, taking into account the burden on

The five-story Fukuju brewery can withstand magnitude-eight earthquakes,

brand and influencing whether people purchase our products, the bottle

the environment that may be caused by an increase in production, weand is therefore a rare structure even in Japan in terms of its quake-

design is also important for guaranteeing the quality of our product because

installed a variety of new equipment for our brewing process: a refrigerator

absorbing capabilities. Being told the lessons learned from the Greatit enhances the storage stability. On the other hand, unrecyclable items such

which uses a new refrigerant in 2013, an air conditioner in 2014, and jet

Hanshin Earthquake, we have made it so that up to 86 people canas colored bottles put a burden on the environment since they are disposed

bubble rice washing equipment in 2015. As a result, our CO2 emissions and

For the koji mold used for our high-quality daiginjo sake, we have

temporarily evacuate to the fifth floor of the building in order to protect theas non-burnable rubbish.

energy usage in FY2017 were 12% less than in FY2010, and our energy

introduced a new method which entails making the koji in a tub.

life of our customers and employees in case a tsunami warning is issued.

At Kobe Shu-Shin-Kan, we used to use blue cobalt bottles, which

Additionally, the capacity of the water tank is 72,000 liters, and it is

had an attractive design and were effective in blocking UV rays, but by

ACTION

02

Sake brewing innovation: Koji produced in a tub

We use a plastic container in order to efficiently evaporate the waterfrom the koji while raising the temperature adequately. The koji naturally

possible to supply drinking water continuously even in the event of a disastergenerates heat at the same time as the moisture evaporates. With this

(if one’s daily intake is about 1.5L, 480 days for 100 people per day)process, we are able to produce koji which is high in glucose. While

ACTIONadvanced knowledge and experience used to be necessary to produce koji
for daiginjo, with this revolutionary method, it has become possible tosteadily and more easily produce high-quality koji.

ACTION05

Efforts for the conservation of miyamizu(high-quality water for sake brewing)
Sake is about 80% composed of water. Kobe Shu-Shin-Kan's sake isconsumption rate in FY2017 was 70% less than in FY2010. These results
show improvements in energy and water efficiency.

09

Variation in energy consumption
Fiscal year

2010

2014

2015

2016

2017

Amount brewed (L)158,678

415,906

463,609459,048479,786

100

262

292

289

302

Production volume rate (index)

1,197,098

1,099,039

1,070,318

1,030,997

1,033,349

In order to preserve the miyamizu, which is so crucial for sake

3

City gas (m )74,641

78,275

72,116

60,696

69,660production, and minimize the impact of civil engineering work with theEnergy (kL)

388

368

353

330

341

CO2 emissions (t-CO2)

826

780

751

703

725

19,47525,247

26,122

26,34026,340

2.4

0.9

0.8

0.7

0.7

brewed with miyamizu, which flows through the Rokko mountains.

cooperation of the community, we are engaged in thorough water resource
management and participate in the Nadagogo Brewers Association's Water
Resources Committee and Miyamizu Preservation Research Committee.

Electric energy (kWh)(City) water consumption (kL)
Energy consumption rate

Making koji with a plastic box

45

Message from the vice-president

Our wish to become a transmission point forregional culture
Kobe Shu-Shin-Kan consists of three business axes. Our president is incharge of the sake business, while I am responsible for the restaurantand sightseeing businesses.
The “Suimei” brewhouse (the brewery restaurant Sakabayashi)
is a wooden brewery restaurant where one can enjoy local seasonal
vegetables, homemade tofu and soba noodles, and fresh sake which
can only be enjoyed at the brewery. The best food which one can eat
with sake to enjoy the delicate flavor differences of different typesof sake is tofu. This restaurant was born from our will to provide theexperience of enjoying the Japanese food culture of “savoring sake at a
soba noodle restaurant” that dates back to the Edo period.
At the “Toumyou” brewhouse (the brewery shop), you can findsake which one can only find at our brewery, sake-pairing foods
and delicacies which are delivered from all over Japan, high-quality
foodstuffs and seasonings, and information on various ways to enjoy
sake.
At the “Houmei” brewhouse, which was once a storage building,
we hold concerts and cultural events so that local people can enjoy artsand entertainment.
With regard to sake brewing, it is an important duty to inherit
traditional brewing methods.
On the other hand, with the idea that we hoped as many people
as possible to visit us and learn about us, Fukuju, new types of sakeand new ways to enjoy sake, we started the operation of our current
facilities in 1997.
With our heartfelt appreciation for the support of local people,
who have helped us continue our operations for nearly 270 years,
we believe that the items we have on offer at our facilities such as
foodstuffs contribute not only to sake production but also to local
production for local consumption. We think that our facilities cancontribute to regional development within the framework of circulationof the local economy.

Attractive points of sake we will keep introducing
At all of our facilities, we are embarking on various initiatives, out of
the idea that we should create places and opportunities to enjoy thedeliciousness of sake in a relaxed environment, to convey to as many
people as possible the attractiveness of sake.
For instance, we offer a seasonal sake “calendar of sake” whichstarts with a freshly brewed sake and grow as time goes by, with thehope that you fully enjoy sake.
Freshly brewed raw undiluted sake is hand-packed and sold byweight, so this naturally creates conversation with our customers. Such
conversations give us encouragement, so we think that every meetingis very important. Additionally, sales by volume is a very eco-friendly
system, as it let customers buy just as much as they need. Furthermore,sales by volume is friendly to customers’ wallets, and if customers
bring their own containers, it creates no unnecessary waste.
While the type of sake we can sell by volume is limited, we thinkthat through this initiative, we can help inspire customers to enjoy
delicious sake while reducing waste, since we will be working with ourcustomers to help better the environment.
Additionally, our various regular events, such as our annual
celebration of the release of our new sake and “Tasting together,” oursake tasting celebration, are open not only to our neighbors. But rather,many people from different regions participate due to our information
sharing on our website and on social media.
For our customers from overseas, in order to deepen understandingof the attractive points of sake, we have prepared multilingual videos
and leaflets which describe the history of Fukuju and sake brewing
techniques and processes. We have prepared videos in Japanese,
English, Chinese, and Korean, and we have prepared leaflets in our
16 most-often requested languages. We are aiming to become the sakebrewery of choice for customers around the world.

Regional revitalization through sake
We are also putting our strength towards regional revitalization throughsake. Using the Shu-Shin-Kan hall, which used to be a building where
brewing took place, we are promoting the spread of arts and culture
from our brewery. The Shu-Shin-Kan hall is a wooden hall with uniqueacoustics, and holds many arts and cultural events every year. We haveheld concerts of many genres such as jazz, classical music and opera,
and have also held other various events such as rakugo (Japanesetraditional storytelling entertainment), and courses, exhibitions, andlectures about sake.
In order that the attendees of these events can know more aboutsake, we offer Fukuju sake during the intermissions.
We hope to invigorate the region through our participation in eventsin the region, and participate in the event “Kobe Marché” in which
many businesses from other industries also participate. “Marché” is amarket where local foods and ingredients come together from aroundthe region. In order to create a lively atmosphere full of smiles in Kobe,
many idiosyncratic local shops open their eaves and participate in theevent. The event is highly popular, with over ten thousand people per
day in attendance.
We are also holding environmental workshops for local elementary
schoolers. I once heard a museum official say, “children who havenever been to museums in their infancy often do not visit even when
they grow up.” Feeling that this phenomenon must be the same outsideof museums, at Kobe Shu-Shin-Kan, we hold rice planting activities
for local elementary schoolers at our mini rice paddy. While children
obviously cannot drink sake, I think that it's good if we can offer them achance to become familiar with the world of sake.
We are continuing to support organizations which are trying tosolve various social issues, for instance by donating a portion of thesales of our “Fukuju special junmai stork-supporting rice Koshihikari”
to the NPO J.POSH, which is working on the Pink Ribbon initiative
to tackle breast cancer, and by donating a portion of the sales of our
Fukuju Junmaiginjo sake to Kyoto University’s iPS Cell ResearchInstitute, which is headed by Nobel Prize-winning Professor Shinya
Yamanaka.
We are continuing to challenge new areas which have not beenpreviously challenged in our industry. This lies in the fact that we havegood communication and can act quickly since we are a company with
50 employees, in addition to our president's willingness to take on new
challenges. Believing that our business’ contributions to society willlead to regional revitalization and the growth of our company, we willcontinue to collaborate and cooperate with various parties and embrace
new challenges.

Hironobu Kubota
Representative director andvice-president

Sharing the attractive points of sake with all of Japanand the whole world
6

Sale by volume

Hall event

Rice planting in a mini rice paddy

Fukuju Junmaiginjo, which
has been certified as a Hyogo
Prefecture certified foodstuff

7

ACTION

Regional revitalization through becoming
the transmission base of culture

ACTION01

ACTION03

ACTION05

ACTION07

The sake brewery viewing as a gateway into the world of sake

Creating bonds between people and regions through events

Contributions towards the regional recycling economy

Added value of byproducts

Aiming at the enjoyment of sake with the five senses, we are holding sakeOnce a year, we enjoy the attendance of approximately 5,000 people overAt our brewery restaurant “Sakabayashi,” for the dishes which one canSake lees, which are byproducts of sake production, become industrial

brewery viewings as a view of the behind-the-scenes of sake production.

the two days of our open brewery event which celebrates the release of ourenjoy with our sake, we use in-season vegetables from within Hyogo

waste if they are not reused. At Kobe Shu-Shin-Kan, we turn these sakeAt the brewery viewing, we have various course options on offer which

new sake. On those days, as the event starts, the performance of the Nada

Prefecture and around Kobe when possible. By doing so, we hope tolees into blocks so that they can be sold to places which need them, andcorrespond with guests’ preferences regarding time and content.

sake brewing song begins, and in addition to tasting and sales of the freshly

promote the creation of relationships between nutrition education andserve cuisine which uses sake lees as an ingredient at Sakabayashi.

By showing videos which display the intricacies of the sake brewing

brewed new sake and sake lees, there are plenty of activities for families

food producers. At the “Toumyou” brewhouse, which is our brewery shop,

In 2015, we began our “sake lees project,” which aims to promote dishes

process on a step-by-step basis, we introduce the complex process of saketo enjoy, such as food carts and stalls, mochi (rice cake) pounding, and a

we sell not only sake, but also Hyogo Prefecture certified foodstuffs, andwhich contain sake lees, such as kasujiru (soup made with sake lees) andbrewing in an easy-to-understand manner. After the viewing, for every

lottery for a footbath at Arima Onsen (hot springs).

display information about local resources and traditional culture.

sakekasunabe (sake lees hotpot) as important parts of the regional cuisinecourse, we prepare a sake tasting, where one can enjoy Fukuju with the

In addition, we sell fresh sake by weight (using returnable bottles) to raiseof the Kansai region. With the help of the media and shops which havebrewery as the backdrop.

awareness about the value of sake and the environment, and collect empty

showcased dishes using sake lees, sake lees dishes have been a part of thebottles so that they can be reused.

boom in Kansai cuisine.

ACTION08

Support for arts and culture by sake brewery
At the Shu-Shin-Kan Hall, we received the Mecenat Award 2000 (theregional award) for our promotion of arts and culture as part of ourcontributions to society.

Sake brewery viewing
Local ingredients

The interior of Sakabayashi

The brewery opening event

Main events held in FY 2018
Event date

ACTION

02
ACTIONThe creation of a multi-language website
In order that people from all the world's countries can learn about Kobe
Shu-Shin-Kan and Fukuju, we have prepared our website in 16 languages.

ACTION04

Efforts to support the health of local people

06

Regional development in collaboration with local NPOs
With the help of local governments mainly based around Kobe, we are

On our website, we introduce not only our products, but also sakeIn order to enjoy sake, your body should be healthy. With this in mind,

collaborating with the NPO “Madrina” on the regionally oriented event

production methods and different ways to serve and enjoy sake.

twice a year, in addition to our brewery opening event and other various“Madrina Marché” which focuses on child-rearing mothers and brings

events, we hold health checkups aimed at the local population. On thatpeople from different regions together. In summer, we hold the sakeday, in cooperation with the NPO “Kenlab,” we protect the health of ourbrewery yukata festival, which is a collaborative event, in addition to othercommunity by measuring blood vessel aging, bone density, blood flow, andevents. We are happy to see the attendance of many people at these events.

so on to learn about community members’ physical conditions. We use thisEvent name

April 2018

The 40th Katsura Bunchin Spring and Fall Rakugo Event

June 2018

Inaba Kazuhiro and the Rainbow Valley Country Band, vol. 30

July 2018

The 108th sake culture dojo
“Why are humans drawn to earthenware?—The enjoyment ofearthenware”
Miho Sings in KOBE

August 2018

Sake brewery yukata festival
Japan-Taiwan cultural exchange: The world of Zhuang Cilu inart and writing

September 2018

information to give advice on eating and drinking habits.

American classic jazz by the Yo Kimura Trio, vol. 14
The 41st Katsura Bunchin Spring and Fall Rakugo event
Japanese handwork exhibition 2018

December 2018

The 35th Katsura Nanko and Kawata Ken friendly jazz club
Inaba Kazuhiro Christmas Concert 2018
End-of-the-year sake brewery opera 2018: The handsome Yao-jizo

The sake brewery yukata festival

January 2019

The 21st Nada Sake University lecture

February 2019

The seventh Okamoto Women’s Culture Festival at Kobe
Sakekasu, 2019
Hina doll exhibition 2019

A multi-language website

8

Health checkups at Nagayamon

9