Crafting Global Flavor: How Chiba Shoyu is Elevating Japanese Soy Sauce Through Tradition and Innovation

Japan’s food exports have experienced record-breaking growth over the past decade, surpassing JPY 1.45 trillion in 2024. This trend is also evident on a global scale, with the number of Japanese restaurants overseas increasing from 55,000 in 2013 to over 200,000 today. What do you think is driving this unprecedented global popularity of Japanese cuisine?

I believe there are four key reasons behind the growing global popularity of Japanese food. The first is localization. Japanese cuisine has been adapted to suit local tastes in many countries. Take the California roll in the U.S., for example—instead of seaweed, it’s wrapped in sesame. In the past, Japanese restaurants in the U.S. were expensive, often found in hotels catering to Japanese guests and expats. Today, however, izakayas and ramen shops have become widely accessible, making Japanese food more approachable and mainstream.

The second reason is the active expansion of Japanese restaurants overseas. With Japan’s population shrinking, many businesses are looking beyond domestic markets. For example, many of our customers are ramen shops, and we’ve seen young ramen shop owners take on the challenge of expanding to places like Singapore, Malaysia, and the United States.

The third reason is quality and trust. Japanese products are known for their high standards, and consumers recognize this. For instance, when I visited Taiwan, I noticed that many people preferred Japanese bottled tea over local brands, even when it was  expensive. This reflects a widespread belief that Japanese products are safer and more reliable, as Japanese manufacturers are known for taking their craft seriously.

The fourth reason is health consciousness. Japanese food is often seen as a healthier option. When I visited India, I noticed that many people consume a lot of sweets, and as a result, diabetes is a common health concern. Additionally, there is a growing global trend toward food that is free from MSG, lower in fat, and lower in calories—qualities that Japanese cuisine naturally embodies.

Soy sauce exports continue to rise, even as supply chain challenges become more pressing. Japan’s domestic soybean production is insufficient to meet demand, and global factors such as U.S.-China geopolitical tensions and climate change-related crop failures are further disrupting supply chains. In response, some suppliers are shifting production overseas. How are you mitigating these supply chain risks, and to what extent does internationalization factor into your strategy?

In Japan, only a few companies,  have expanded their soy sauce production overseas. The main reason is that soy sauce production machinery is extremely expensive. Manufacturing these machines in Japan and then transporting them abroad requires significant resources and specialized personnel—something that most companies, including us, simply cannot afford to do.

As for key ingredients like soybeans, wheat, and salt, these are traded in large volumes globally. Our company sources these ingredients from Japanese trading companies and wholesalers, who are already working to mitigate supply chain risks. What we can do on our end is to diversify our supplier base and seek new business partners to ensure a stable supply of ingredients.

Previously, we relied on a limited number of specific suppliers, but now we are actively working to broaden our sourcing network. By purchasing from suppliers capable of handling large volumes, we can better navigate supply chain challenges and ensure stability in our production process.

Your company has a long history dating back to 1854, and one of your signature products, Shimousa soy sauce, has earned international recognition, including a two-star rating from the International Taste Institute (iTQi). It is known for its unique balance of flavors, achieved through the use of microorganisms in the fermentation process. What sets Shimousa soy sauce apart, and how do these microorganisms contribute to its distinctive flavor?

First of all, Shimousa soy sauce is actually a relatively new product, launched in 2004. At the time, there was a growing movement toward local production and local consumption, so we wanted to create a soy sauce using Japanese-grown soybeans, wheat, and salt. We also had old wooden barrels, which we used to develop a unique fermentation process, resulting in a deep umami flavor.

The product was highly regarded by professional chefs, who praised its versatility for all types of Japanese cuisine. A few years after its launch, a culinary article featured a blind evaluation of various soy sauces, testing them across different Japanese dishes. Shimousa soy sauce received an almost perfect score, further solidifying its reputation and credibility. Since then, its recognition has continued to grow, earning international acclaim.

As for how wood barrels influence the taste, the key difference lies in the presence of Kuratsuki yeast. Today, many manufacturers use stainless steel or plastic tanks, which  resulting in a cleaner, more neutral flavor.

In contrast, wood barrels have tiny gaps where Kuratsuki yeast thrives, and each company has its own distinct strain of yeast, which imparts a unique depth of flavor to the soy sauce. Additionally, soy sauce aged in wooden barrels absorbs the natural aroma of the warehouse, adding another layer of complexity. Since every company's warehouse has its own unique scent, this creates subtle variations in flavor.

In our case, the natural environment of our barrels and warehouse turned out to enhance the soy sauce’s aroma and taste, contributing to the distinctive character of Shimousa soy sauce.

Interestingly, we don’t engage in much direct sales activity—our brand awareness has spread organically through word of mouth, and we have many loyal repeat customers. In fact, many of our customers promote our products for us without any formal arrangement.

Just yesterday, I was in Kisarazu at a roadside station called Umakuta no Sato, which sells a wide variety of soy sauce products and allows customers to sample them before purchasing. I noticed that a salesperson was actively recommending our Shimousa soy sauce, even though we have no professional relationship with that person or the store. This kind of organic promotion happens frequently, and it’s a testament to the quality and reputation of our product.

Another example is Surugaya, an eel restaurant near Naritasan Shinshoji Temple, which uses Shimousa soy sauce for its signature sauce. They stock 18-liter containers of Shimousa and even promote it to their customers, highlighting its exceptional quality as part of their dining experience.

As we discussed earlier, the number of Japanese restaurants overseas is growing, but one of the biggest challenges they face is maintaining authentic Japanese flavors while sourcing high-quality, authentic ingredients. Your company plays a role in supporting businesses with overseas expansion, offering services such as menu consultation, product development, and business matching. Could you tell us more about how you assist Japanese restaurants looking to expand internationally and the specific services you provide to help them succeed?

One example of our customized approach is a soy sauce we developed specifically for Mongolia. A group from Mongolia visited Japan and expressed interest in a unique soy sauce tailored to their market. We carefully listened to their requests and preferences, exchanging samples back and forth until we created a product that met their expectations. We also adapted the labeling to suit their needs. Rather than offering fixed services, we focus on understanding each customer’s requirements and ensuring we provide solutions that align with their vision.

We also welcome international visitors who are eager to learn about soy sauce production. While we are mindful of protecting our trade secrets, we are open to sharing our expertise with those who have a genuine interest in the craft.

For example, we hosted Mystic Koji LLC from Connecticut, U.S., who wanted to learn from our process. Another company, Brown Koji Boy in Goa, India, has also expressed interest in studying our methods. Additionally, MN Food from São Paulo, Brazil visited us to gain insights into our production techniques, and I even traveled to Brazil to visit them in return.

When it comes to your overseas customers, are you primarily working with Japanese restaurants expanding internationally, or are you seeing more interest from foreign companies looking to incorporate Japanese cuisine into their offerings?

At the moment, our overseas business primarily operates on a B2B model, supplying restaurants that use soy sauce in their cuisine. We export our products through Japanese trading companies, which distribute them to the U.S., Europe, and Southeast Asia. These trading companies act as wholesalers, selling our products to local restaurants under different brand names, rather than under the Chiba Shoyu brand.

Currently, 90% of our revenue comes from B2B sales and OEM private brands. For example, ramen shops use soy sauce blends that we develop specifically for them, and we also have the export business facilitated through trading companies.

Our branded soy sauces, including Shimousa soy sauce, account for about 10% of our revenue. However, they are positioned as premium products, often used in high-end restaurants or sold as B2C products to discerning consumers.

You’ve partnered with Kampai and JICA to introduce India’s first locally produced authentic soy sauce using traditional Koji fermentation. Could you share more about the strategy behind this venture and what led to the decision to enter the Indian market?

We don’t have the financial resources or personnel to build our own factory overseas, but the overseas market is highly attractive, so we began exploring alternative strategies. That’s when we discovered that the Japan International Cooperation Agency (JICA) supports business initiatives in developing countries. By partnering with them, we saw an opportunity to expand internationally without the need for significant upfront investment.

Our expertise lies in koji fermentation and soy sauce production, but koji yeast is unique to Japan—it doesn’t naturally exist elsewhere. Since we have both koji and fermentation technology, we realized this could be the foundation for a collaboration with JICA. They offer a Sustainable Development Goals (SDG) support project, and one of their target countries was India—a major producer of soybeans and wheat.

Our idea was that by teaching local producers how to make authentic Japanese soy sauce, we could help develop India’s fermentation industry, even though the market for Japanese-style soy sauce is still relatively small there. This was the core of our proposal to JICA, and after presenting our concept, they approved our project, enabling us to take our expertise to India.

This is what I call a strategy for resourceful businesses—when you don’t have the money, you have to think creatively and find smart ways to make things work.

Do you see this new manufacturing facility in India as a stepping stone for expanding into other international markets, such as the Middle East, Europe, or Southeast Asia? Could this initiative serve as a launchpad for further international growth and help scale your business globally?

At the moment, we have just completed the JICA project and haven’t taken any concrete steps toward expansion yet. However, our partner, Kampai, has a global outlook and is already exploring opportunities in Dubai and the UK. The owner of Kampai studied in the UK, so we see potential for future expansion from India into the Middle East and Europe.

That said, we’ve also received some valuable insights from our advisor, who has extensive experience in India. He mentioned that Indian business culture tends to be highly optimistic, with people often making big claims about what they can achieve. Because of this, we are still working to set realistic expectations for what’s possible.

Still, Kampai takes a different approach than we do—they truly think globally, which gives us confidence in the potential for expansion. In fact, the father of Kampai’s owner recently visited Japan, and we had a meal together. He expressed strong confidence in his daughter's ability to grow the business internationally, which further reinforces our optimism for the future.

Are you looking to expand through private brand development, or is your focus on growing the market for your own branded products?

Ideally, we would prefer to sell our own branded products, but ultimately, it depends on customer preferences in each market. Different regions have different taste profiles—for example, in Mongolia, soy sauce tends to be too strong, while in India, consumers prefer sweeter flavors. While we would love to introduce Shimousa soy sauce globally, it’s more likely that localized variations will be requested to better suit regional tastes.

Currently, we sell Shimousa soy sauce in select shops in the U.S., but we don’t expect it to become a large-scale business. Instead, we see it as a niche product that appeals to a specific audience.

Let’s imagine we return to interview you on your last day as president. What goal or ambition do you hope will define the legacy of your leadership?

Right now, we are a local company based in a remote area of Chiba, but my goal is to transform it into a global brand. Currently, we receive domestic orders without actively engaging in sales activities, and ideally, I would like to reach a point where we receive orders from all over the world in the same way—without the need for aggressive sales efforts. that is my dream and the legacy I hope to build.

For more information, please visit their website at: https://www.chibashoyu.com/english/company.html

To read more about Chiba Shoyu, check out this article about them.