Crafting Artisanal Foods from Japan's Heartland

Last year, Japan achieved a record-breaking JPY 1.5 trillion in food-related exports. At the same time, the number of Japanese restaurants overseas has tripled over the past decade, now totaling around 200,000. In your view, what has made Japanese cuisine so popular and widely embraced around the world?

I believe one key reason is that global consumers are becoming more affluent, and washoku, or Japanese cuisine, is often perceived as high-end and premium, which naturally attracts that growing demographic. As the global economy expands, there are more wealthy individuals who are willing to seek out and spend on quality food experiences.

Another important factor is the increased availability of foundational Japanese ingredients—like soy sauce, mirin, and cooking sake—which form the base of many dishes. Today, there’s a well-established global supply chain that makes these ingredients more accessible, enabling chefs and home cooks around the world to recreate authentic Japanese flavors. Once people try the food, they often discover how delicious it is.

Additionally, there's the growing trend toward health-conscious eating. Japanese cuisine has a strong reputation for being light, balanced, and healthful, which aligns well with what many modern consumers are looking for. This health appeal has also contributed to the rising popularity of washoku globally.

As Japan’s domestic market continues to shrink due to demographic changes, the government is placing greater emphasis on food and beverage exports—through initiatives like the Japan Food Product Overseas Promotion Center (JFOODO) and global food campaigns—with the goal of reaching JPY 5 trillion in exports by 2030. What opportunities does this government support create for your company to expand its export business?

I believe food is a universal language—it’s something that connects people all over the world. Rather than focusing solely on chasing large, global brands, I see the greatest potential in smaller, local players who can capture the interest of younger generations and build strong, authentic brand identities. These are the kinds of businesses that I believe are best positioned for future growth.

Craftsmanship, local production, and local consumption are also essential. In many cases, smaller can actually be better, because customers often feel a deeper, more personal connection to these kinds of brands. Today’s values are more diverse than ever, and I think consumers are increasingly drawn to products that are thoughtful, authentic, and made with care.

I also see great potential in individuals—chefs, artisans, and passionate creators—who are deeply committed to what they produce. These are the people and brands that I believe will be cherished and supported in the years to come.

One of the biggest challenges facing Japanese food-related companies is the aging and declining population, which is leading to both shrinking consumer and labor markets. How is your company addressing or mitigating the impact of these demographic shifts?

It’s true that, from a macroeconomic perspective, the Japanese market is shrinking—that’s a fact we can’t ignore. However, I believe there is still significant room for us to grow. Over the past ten years, our average compound annual growth rate (CAGR) has been 20%, which has outperformed the broader market. The Japanese food industry is undergoing a phase of optimized growth, and we see opportunities within that shift.

Traditionally, the structure of this industry has been fragmented, with clear divisions between manufacturers, wholesalers, and retailers. This created a segmented and often inefficient supply chain. In contrast, our approach is fully integrated—we manage everything seamlessly from production through to final sales. I believe this direct channel is critical because it allows us, as a manufacturer, to deliver brand value straight to the consumer without dilution. That connection is becoming increasingly important in today’s market.

Until we opened our first Kuze Fuku & Co. store in 2013, we were primarily selling wine and jam. In fact, jam is where it all began—it's our original product, and it was handmade by my mother. She started by making jam for customers by hand, and that’s how our journey started.

Initially, we operated as a wholesaler. However, we realized that channel wasn’t effective in conveying the true value of our jam. Success in wholesale was tied heavily to the number of salespeople or the amount of capital, and given the competitive landscape, we didn’t see a sustainable future there. That led us, in 1999, to open our first direct retail shop at a shopping center in Karuizawa, where we sold wine, jam, pasta sauces, dressings, and tea. At the time, the mall primarily featured apparel stores, so opening a boutique wine and food shop was a new concept. Our first-year turnover was JPY 200 million, and we quickly saw that people from Tokyo were purchasing food from Nagano to bring home as souvenirs.

The wholesale sales agent we had originally hired was appointed as the store manager, and he was able to convey our passion for the jam and wine we offered. That resonated deeply with customers. From there, we began producing a wider range of products in small batches ourselves.

We eventually opened around twenty stores across Nagano, but by 2010 or 2012, we realized that expanding nationwide would be a significant challenge. Around that time, we took part in the Expo in Singapore to explore global opportunities. That proved to be a pivotal moment. We were asked to present products that were uniquely Japanese—such as miso or soy sauce. While our jam was well-received, they noted that there were already many excellent jams and wines from France and elsewhere. It was the first time I truly understood what international customers were looking for from Japan. That experience helped me recognize the distinctiveness and potential strength of our business.

Then in 2012, a representative from AEON approached us with a proposal to open a new store at their Makuhari mall, using a new concept and format. We said yes, because we believed our brand had the potential to succeed not only in the Japanese national market but also globally.

As a premium food manufacturer based in Nagano, I began to think more broadly—there are similar producers with incredible products throughout Japan. If we could connect those dots and deliver delicious gourmet foods from across the country, it would create something truly special. That idea inspired the development of our brand concept.

We drew on our family history in creating Kuze Fuku. Our ancestors came from Choshi in Chiba Prefecture, a city well-known for its soy sauce production. Our family had once made soy sauce there. My grandfather’s name was Fukumatsu Kuze, and the character fuku means “luck”—a wonderful name to carry forward. That’s how we created the Kuze Fuku brand.

This journey has always been about honoring the past rather than simply chasing the new. The concept resonated particularly strongly following the Great East Japan Earthquake in 2011. That tragedy reminded many people of the importance of family and connection. In that environment, the Kuze Fuku concept—rooted in tradition, family, and craftsmanship—really struck a chord with customers.

Going back to the origins of your company—with your mother making handmade jam—I’m curious: what is it that makes your fruit jam so unique and special?

My mother was a housewife, and she started out simply making jam for the family—not as a professional, but as someone who cared deeply about the food her loved ones ate. That turned out to be something quite new and refreshing at the time.

Back then, most food companies were focused on stabilizing product quality through the use of additives and mass production. Their approach to quality control was centered around minimizing complaints, which often meant sacrificing natural flavor or simplicity.

In contrast, my mother had no knowledge of food additives. She wasn’t thinking from a manufacturer’s perspective—she was simply making something wholesome and delicious for the family. Her jam had a much lower sugar content than commercial standards at the time, which actually meant we couldn’t legally call it "jam" under Japanese regulations.

Today, our products meet the official standards and are classified as jams, but the spirit of how we began—focused on authenticity, natural ingredients, and homemade care—continues to define what makes our jam unique.

What were the key challenges in transitioning from your mother’s homemade jam—originally made for family consumption—to the product you distribute today across Japan and around the world?

We originally started the business from our guest house in Nagano, which is a relatively small market. Right now, in spring, the region is vibrant and green—a beautiful season that attracts tourists. But in winter, tourist numbers drop significantly, and the seasonality here is quite extreme.

Because of that, we needed to find a way to stabilize our business. Expanding beyond our local area became a necessity for survival. That sense of urgency—of needing to adapt and grow in order to continue—was what drove us to rethink our format and approach the market more proactively.

That mindset, born from a sense of crisis, has become part of our company’s DNA. It’s what shaped our evolution from a small, family-style operation to a brand capable of distributing across Japan and beyond.

Your wine business has earned prestigious recognition, including gold awards for the St. Cousair Chardonnay 2017, Ale Rouge 2014, and Nagano Chardonnay at the 13th Feminaires World Wine Competition in 2019. What would you say makes your company unique or innovative when it comes to the wine production process?

One of our key advantages in wine production is our location in the northern part of Nagano. This region is well known for apple cultivation, and one of its defining characteristics is the significant temperature difference between day and night. That variation helps preserve the natural acidity in the grapes, which contributes to the flavor profile of our wines. As a result, our wines tend to have a subtle yet well-balanced taste that is particularly appealing to Japanese consumers.

Another area of innovation is the supply chain we developed. Traditionally, the wine industry in Japan relied heavily on wholesalers, but we wanted to establish a direct relationship with our customers. In the beginning, we didn’t have any dedicated retail spaces, so when we began pursuing direct sales, it created some friction within the traditional distribution system. But as a small winery, we knew we needed to find a way to reach customers directly, and that shift became one of our greatest strengths. Building our own direct sales channels was a bold move at the time, but it’s now a core part of what makes our approach unique.

Turning to your internationalization strategy, you previously mentioned introducing the Kuze Fuku & Sons brand as a way to approach global markets, and you also established a subsidiary in Oregon to distribute your products in the U.S. market. What key lessons have you learned from your expansion into the U.S., and what are your plans for further overseas growth?

In the food business, I believe it’s essential to have both an export strategy and a model that supports local production and local consumption. Pricing must align with local market standards, and lead time is also a critical factor. If our products are priced too high, we might still make some sales, but we won't be able to reach a broader audience or achieve sustainable growth.

Before establishing our footprint in the U.S., we actually attempted to enter the Chinese market. However, that experience was very difficult and challenging. We had no production facility, no sales network, and no administrative infrastructure—everything had to be built from scratch. That experience taught us how important it is to have the right foundation in place when expanding internationally.

Our U.S. entry benefited from a bit of good fortune. We met the owner of a co-packing company whose son worked for Nintendo and had no plans to take over the family business. As a result, the owner was looking to sell, and we were able to acquire that facility. It became the core of our manufacturing operations in the U.S. and allowed us to establish our own brand there.

In the United States, we made a conscious decision not to target only Japanese expatriates. Instead, we wanted to introduce our products to mainstream American consumers by offering hybrid items—familiar formats like ketchup, barbecue sauce, and pasta sauce, but infused with Japanese flavors. We incorporated ingredients such as miso, soy sauce, and yuzu to create something both accessible and distinct. To support this, we provide clear usage instructions on the back label to help consumers understand how to enjoy these products.

Initially, we took a very grassroots approach—going door to door, trying to meet store managers and buyers. It was a struggle even to get them to try our samples. But about a year later, some of those same buyers came back to us with interest. We were invited to give presentations, and that led to small-scale test marketing. Bit by bit, we started to build our presence. That’s how we began expanding in the U.S. market.

I also noticed that you've established an e-commerce presence for the U.S. market, which helps connect local farmers to consumers. Could you tell us more about this initiative, and how e-commerce supports your strategy for entering and growing in the U.S. market?

Our e-commerce business has grown rapidly, especially since we launched the initiative at the start of the pandemic. Since then, our top line has tripled—what used to be around JPY 100 million has grown to JPY 300 million, and now we've reached JPY 1 billion in sales. It has been a dramatic and encouraging jump. We manage the e-commerce platform and digital transformation (DX) efforts entirely in-house.

One of our key goals with this platform is to support small-scale producers—many of whom are too small to be handled through our Kuze Fuku retail network. These producers often create exceptional, high-quality products they’re deeply passionate about, even if their production volume is limited. Today, we work with around 300 such companies.

Some of these partners are tiny mom-and-pop shops that still rely on telephone and fax. Through our platform, we give them access to digital tools that allow them to operate using smartphones and receive online orders. We also maintain direct communication with them, providing customer feedback and helping them improve how they present their products online.

We have a dedicated team that helps with photography and presentation—showing them which angles best highlight the appeal of their food items. In this way, our website becomes a digital storefront that gives these small producers an e-commerce footprint they otherwise wouldn’t have.

Many of our employees are true food enthusiasts. We often taste the products ourselves, because we believe you can’t earn the trust of e-commerce customers unless you’ve experienced the product firsthand. In that sense, our team acts like food reporters—we write articles and share our impressions to help consumers understand just how special these products are.

You mentioned how having the right connection in the U.S. was instrumental in getting your start in that market. When it comes to your broader international strategy, how do you approach partnerships? And if you’re currently looking for new partners, what qualities would define your ideal partner?

We’ve made significant progress on the West Coast through direct sales channels, but the U.S. is a vast market, and reaching the East Coast has been more challenging. One of our strategies has been to incorporate strong local brands into our business to create synergies and streamline production through our existing factory operations.

For example, last autumn we acquired Bonnie’s Jam, and we also brought Portlandia Ketchup into our group—it's a well-recognized brand in Oregon and Seattle, particularly known for its organic offerings. Both brands are now produced at our Oregon facility, which allows us to optimize our manufacturing and strengthen our product lineup with names that already resonate locally.

Over the past seven years, about 2,000 stores have carried our products. However, in areas where we don’t have direct access to distribution channels, we’re open to partnering with strong local brokers. This is especially important for working with large supermarket chains such as Whole Foods or Kroger. These partnerships are critical to expanding our footprint in a market as diverse and regionally segmented as the United States.

After seven years of building your presence in the U.S., as you look ahead, are there any specific markets or geographic regions—either within the U.S. or internationally—that you’ve identified as having strong potential for your company’s next phase of growth?

I believe there’s still significant room for us to grow in the U.S., but I’m also very interested in Canada. One idea I’m considering is establishing a confectionery factory in the U.S., since we currently only handle groceries there. I also have a deep respect for European markets—particularly France, Italy, and Switzerland. However, expanding into those regions comes with certain risks, so we would need to partner with strong local players. Still, within the next five years, we’d like to take on the challenge of entering new international markets, and there are already several brands that have caught my attention.

We’ve also had success in Taiwan and South Korea, where we already have distribution channels and a strong sales track record. As a next step, we’d like to establish local sales companies in those markets to build a stronger footprint. In addition, we’re exploring the possibility of building a factory in Southeast Asia—and potentially in China as well—to secure a more efficient supply chain and ensure we can offer competitive pricing.

We’ve seen steady success in Taiwan and South Korea, where we already have established distribution channels and a solid sales track record.

In these markets, we are exploring various possibilities for future development, with the aim of building a stronger foundation.

Additionally, we are considering options such as establishing a factory in Southeast Asia—and potentially in China as well—to create a more efficient supply chain and offer competitive pricing.

Of course, our Japanese suppliers remain essential to our identity and quality, and we deeply value those partnerships. We currently work with about 500 suppliers across Japan, and we prioritize regular, direct communication with them. Every year, we host a barbecue event where we bring everyone together—not just to enjoy a meal, but to discuss our corporate direction and build stronger relationships.

Through this close communication, we’ve developed some meaningful collaborations. One example is with Marui Soy Sauce, led by President Hiroyuki Tamino. Their soy sauce storage house is located in Nakano City, Nagano. In our grandparents’ generation, people would ferment soybeans to make soy sauce, and the leftover solids—still rich in flavor—were often eaten over rice. While older generations still enjoy this, younger people are less familiar with it.

To help preserve and modernize this traditional food culture, we created a new product called Taberu Dashi Shoyu—a soy-based condiment you can eat—which has become especially popular with younger consumers. It’s just one example of how we’re trying to bridge generations and revitalize traditional flavors in a modern format.

Another example of how we’re renewing traditional food culture comes from Akita, in the snowy northern region of Japan. There, you’ll find a traditional preserved food called iburigakko, which is a smoked daikon radish. Because of the heavy snowfall, locals couldn’t dry the daikon outside during winter, so they developed a method of smoking it indoors over a hearth. The result is a flavorful, long-lasting preserved food traditionally eaten as pickles.

However, iburigakko has become less commonly consumed in modern times. To help revitalize interest in this unique product, we decided to use it as an ingredient in tartar sauce—and it became a huge hit. By combining a traditional flavor with a familiar, modern format, we were able to introduce iburigakko to a much broader audience across Japan.

This idea of modernizing and popularizing regional foods is something we’re passionate about—not just in Japan, but internationally as well. As we discover exceptional local ingredients and food traditions, we want to breathe new life into them by developing creative new products. For me, that’s where I find real meaning in what we do, and it’s something I’d very much like to continue pursuing.

As a final question, can you briefly talk about the vision of your company?

We’ve established a corporate slogan and a vision for 2035 that reflect both our origins and our aspirations. Since our journey began with my mother’s handmade jam, we want to continue being a bridge between Japan and the rest of the world by creating innovative gourmet food that speaks to both tradition and modern tastes.

At the heart of our mission is a deep respect for Japan’s traditional local food culture. Our goal is to preserve these traditions by reimagining and modernizing them—so they remain relevant and cherished for future generations.

At the same time, we want to bring fresh ideas and creativity into the process. We’re not only focused on the products themselves, but also on the people and the places behind them. In particular, we hope to attract more individuals to join the food industry here in Nagano, where they can pursue meaningful work and enjoy a balanced, fulfilling lifestyle. This integration of heritage, innovation, and community is what defines our vision for the future.

For more information, please visit their website at: https://www.stcousair.co.jp/company/en/outline