Hakkaisan Brewery is a sake master, leveraging over a century of experience, the company is looking to expand its tradition and bring sake to people worldwide.
For 11 consecutive years, we’ve seen Japanese food-related exports increase. If we look at up to 2023, they reached JPY 1.45 trillion. From the perspective of a brewery, how do you account for this substantial rise in Japanese food exports? Why is now the time for washoku to shine internationally?
Our company was established in 1922, and it has now been 103 years since our founding. Our sake is known for its dry, crisp taste, with a particular focus on creating sake that complements meals. Over the years, we’ve accumulated extensive knowledge and expertise in sake production as well as the broader food industry. Building on this foundation, we have expanded into other beverages, including shochu, beer, and various innovative products.
Sake is rooted in rice, koji, and fermentation processes. Leveraging these traditional techniques, we’ve developed a variety of products based on time-tested Japanese production methods. This expertise has enabled us to create innovative offerings, and while our reputation is well-established in Japan, our current focus is on introducing our capabilities to the global market. Today, when we create new products, we do so with export markets in mind.
Sake is often compared to wine, and while there are similarities—particularly in brewing technologies—there is a key difference. Wine is agricultural at its core, while sake production relies heavily on processing capabilities. Companies like ours decide on the specific type of product we aim to produce and select the ingredients, particularly water, accordingly. Water is the most important ingredient in sake-making, and the processing techniques ultimately determine the quality of the final product. This focus on technology and processing is what defines our company’s value and purpose.
Our policy is to consistently produce high-quality sake that can be enjoyed with meals. A core characteristic of our sake is its dry, light, and crisp taste. Rather than adapting to fleeting consumer trends, we focus on consistency and quality. This philosophy has also guided the development of other products, allowing us to stay true to our vision while innovating in new directions.
With the rising global popularity of Japanese food staples like sushi and ramen, it’s no surprise that accompanying beverages like sake have gained significant international recognition and appeal. Once considered a niche drink primarily enjoyed in Japan, sake is now appreciated worldwide and has become a staple in Japanese restaurants across the globe. Why do you think sake is experiencing this surge in popularity and appreciation worldwide? What do you consider to be sake’s main strengths as an alcoholic beverage?
The growing global popularity of Japanese cuisine has played a significant role in the rising appreciation for Japanese sake. Sushi, in particular, was instrumental in the initial proliferation of Japanese cuisine in the United States. This was followed by the introduction of dashi-based dishes and high-end Japanese cuisine. More recently, dishes such as ramen and yakitori have become widely popular among diners overseas.
While some may now consider Japanese sake to be popular internationally, I’m not entirely convinced this is the case just yet. In the U.S. market, for example, sake production was once limited to California, and the quality may not have been at the level necessary to appeal broadly. Authentic Japanese sake, however, offers a depth of characteristics and varieties that set it apart from other alcoholic beverages.
One of sake’s greatest strengths is its versatility—it pairs exceptionally well with a wide range of Japanese dishes, enhancing the dining experience. This variety and adaptability make it a key appeal point for international audiences as they explore Japanese cuisine.
What kind of opportunities does the international rise in popularity for sake present for your company?
Our export business began in 1995, following an inquiry from a supermarket in New York City. At that time, sushi and high-end Japanese cuisine were becoming increasingly popular in the U.S. This initial wave of interest was soon followed by the growing popularity of dishes like yakitori and ramen.
As demand for Japanese cuisine increased, our market share in the U.S. grew as well. In response, we made concerted efforts to strengthen our marketing activities in the region. By adapting to and meeting this rising demand, we were able to seize new opportunities and further expand our presence in the market.
Sake production is a complex process but relies on just a few core ingredients: rice, water, yeast, and koji. One of your company’s advantages is that you source your ingredients locally in Niigata Prefecture. Could you tell us more about the characteristics of your Tanrei Karakuchi brewing style and how you utilize the unique qualities of Niigata Prefecture to craft your sake?
First, I’d like to clarify that we don’t aim for the Tanrei Karakuchi style; instead, our focus is on a Tanrei Balanced style. This approach centers on achieving a balanced taste that appeals to as many customers as possible.
The founder of our company, my grandfather(Koichi Nagumo), was passionate about Japanese sake. His goal was to create a sake that was easy to drink and enjoyable in social settings. My father(Kazuo Nagumo), the second-generation leader of the company, continued to follow the original recipe, further refining and evolving the concept of Tanrei Balanced. He also shared a deep commitment to regional revitalization, establishing the brewery as a place where local people could find meaningful work. Additionally, he aspired to scale the business significantly, believing that growth would amplify these revitalization efforts. His vision succeeded, and the company’s size increased 100-fold under his leadership.
As the third-generation president, my purpose is to continue evolving the Tanrei Balanced style and expanding Hakkaisan Brewery’s reach into global markets, transforming sake into a truly international beverage. With this purpose in mind, we’ve begun to focus more on opportunities outside of Japan.
Thanks to our expertise in rice and koji fermentation, we’ve realized the potential to innovate and diversify our offerings. Our knowledge and technology have shown us that the company holds infinite possibilities. Beyond sake, we have expanded into beer production due to its shared fermentation process with sake, and we’ve also ventured into whiskey and soju production. These expansions are rooted in our commitment to achieving and applying the Tanrei Balanced philosophy across all our products.
Your Hakkaisan Tokubetsu Honjozo is a classic sake with a refined, clean, and dry profile. You also offer innovative products like your Clear Sparkling AWA and the Hakkaisan Junmai Daiginjo, among many others. Considering your diverse product lineup, which product do you believe holds the greatest growth potential for your company?
We strive to offer the best quality sake, and this is achieved through decades of technological development. This same technology is applied to all our beverage production processes. In fact, our approach to production is more akin to car manufacturing than food production. Consider a Formula 1 car—it’s engineered with advanced technology to be both incredibly fast and safe. Similarly, our goal is to create sake that is both delicious and affordable.
With this mindset, we have developed our sake, and as we continue to improve our processes and technologies, the quality of our products will also evolve.
It’s important to note that just because our sake is reasonably priced does not mean it is low quality. Our products are recognized as high-quality, and this quality will continue to advance as we explore and implement new technologies and production methods.
Are you planning to introduce any new products specifically designed and marketed for an international audience? If so, could you share any details about what you have in mind?
As we continue to analyze market trends, there is a possibility that we will develop products specifically with a global audience in mind.
We announced that Hakkaisan has entered into a partnership agreement with the Los Angeles Dodgers from this season. It is a great honor to collaborate with such a historic team, and we try to make special collaboration products with Dodgers and expand the potential of sake worldwide.
In 2021, we entered into a capital alliance with Brooklyn Kura to support this goal, and we are exploring the potential to launch Hakkaisan products made in the United States. However, the timing for such an initiative is not yet right.
When it comes to alcoholic beverages, brand recognition is crucial. Drinks like beer, wine, and whiskey are universally known and enjoyed worldwide. What do you think the sake industry should do to elevate sake to the same level of global recognition and make it a beverage enjoyed across the world?
For Japanese sake to become a global beverage, it must embrace and highlight the unique characteristics of each region where it is produced. If you look at wine, for example, its flavors are deeply influenced by the grapes and the regions they are grown in. Quality is often associated with specific areas, like Napa Valley for wine.
We began producing whiskey in 2016, and as you may know, it typically takes over 10 years to achieve a high level of quality. Similarly, wine production is a long process, as you need to establish grape cultivation before you can even begin winemaking. In contrast, sake can achieve excellent results within a much shorter period of time. This adaptability allows us to respond quickly to market trends, such as the current increase in demand for Junmai sake. Our processes can be adjusted to cater to these preferences.
However, this adaptability shifts some responsibility to the consumers themselves, as their preferences directly influence what we produce. Unlike wine or whiskey, sake can quickly evolve to meet market demands.
Let me share a quick anecdote about Chilean wine. When it first entered the market, it was largely overlooked in favor of more established old-world and new-world wines. But over time, within about 10 years, Chilean wine gained recognition and respect in the market. Sake is quite different in this regard—it can adapt and change much faster to fit consumer needs.
That said, to deepen our knowledge of sake and expand its global appeal, producing sake outside of Japan will be an essential step.
Can you achieve the same quality outside of Japan?
I don’t think the quality would be the same, but the basic principles would still apply. I also want clear directionality on what we want to achieve.
Partnerships and collaborations are vital for maintaining an international presence. Notably, you’ve partnered with Brooklyn Kura to help expand their sake market in the United States while also importing and selling their sake in Japan. Are you planning to expand your international partnership network further? If so, which countries or regions do you see as the most valuable for future collaborations?
As Japanese sake gains recognition in the global market, consumption levels have also grown. However, when comparing sake exports from Japan to wine exports from France, the difference is significant. Japanese sake and whiskey exports amount to approximately JPY 150 billion annually, while French wine exports average around JPY 2.7 trillion. This highlights the small size of the sake market and the urgent need to expand it. Increasing recognition requires actions rather than words.
Our collaboration with Brooklyn Kura was driven by the allure that sake holds for American consumers. Brooklyn Kura wanted to produce Japanese sake in America, and this vision strongly appealed to us.
In Japan, consumers are familiar with a variety of beers and whiskeys and can easily identify the unique appeal of each brand. Brooklyn Kura recognized that this familiarity with international beverages in the Japanese market made us a strong partner. When we began the partnership, Brooklyn Kura lacked some of the knowledge and skills required for sake production, but we shared a common goal: to bring genuine, high-quality Japanese sake to the United States.
This partnership represents more than just exporting techniques; it’s about creating something unique. While we taught them traditional techniques and methods, Brooklyn Kura retained its own identity, producing sake with characteristics you won’t find in traditional Japanese sake. This blend of tradition and innovation makes their product truly interesting, and we believe it has the potential to become a global sake brand.
Although imported sake has historically struggled to succeed in the Japanese market, we are confident this partnership will be different. By combining genuine quality with a distinctive appeal, we believe this American-made sake can thrive both in Japan and globally.
Three types of these Brooklyn Kura sakes will be available in Japan from April. Please look forward to it!
Which of your products do you recommend for first-time sake drinkers?
As mentioned earlier, our products embody the Tanrei Balanced style, and I want consumers to experience the signature taste that defines all of Hakkaisan Brewery’s offerings. We craft sake with the goal of facilitating communication and creating meaningful connections, which is why we emphasize enjoying Japanese sake during meals.
Sake is also beneficial for one’s health, so rather than recommending a single product, we encourage people to explore and appreciate the diversity of our lineup. Whether it’s our sake, wine, whiskey, or other beers and spirits, we want consumers to feel the rich history and dedication behind everything we create.
For more information, please visit their website at: https://www.hakkaisan.com/
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