Hanamaruki’s Global Push: Elevating Miso & Shio Koji to New Heights

Japan's food exports have reached a record high for 11 consecutive years and will reach 1.45 trillion yen in 2023. This trend is also seen on a global scale, with the number of Japanese restaurants abroad more than tripling over the past decade, from 55,000 in 2013 to today, where there are approximately 200,000. How would you explain the record level of growth in Japanese food exports and the recent increase in popularity of Japanese food abroad?

I believe that the main factor is the "high quality" of Japanese food products. Japanese food manufacturers have an ingrained culture of sincere "monozukuri" (the art of manufacturing) and have long been committed to improving quality. This high quality of Japanese food products is now attracting attention, especially in Europe and the United States.

Over the next 15 years, Japan is projected to experience significant demographic changes characterized by an aging and shrinking population. As a result, not only will the domestic market shrink, but Japan will also face a labor shortage. Can you discuss some of the challenges, the opportunities they present for your company, how you are addressing those challenges, and how you are capitalizing on those opportunities?

Labor shortage is a serious issue that will change the entire industrial structure of this country and will have a significant impact on our company. However, as our brand is widely accepted and recognized in Japan, we are fortunate to be in a favorable situation when hiring human resources. Furthermore, I believe that we can overcome this challenge by proactively utilizing AI, robotics, and IT technologies to both improve productivity and maintain quality.

Given the shrinking domestic market, to what extent do you think the company needs to develop opportunities in international markets to ensure its long-term success?

As aforementioned, our products are well recognized by all age generations in Japan, and our outlook is not so pessimistic in regard to the shrinking market due to Japan's declining birthrate and aging population. Even though younger generations tend to prefer fast food, as they get older they are inclined to become more interested in traditional Japanese food, such as miso soup, and seek a healthier diet.

At the same time, I believe aggressive expansion into overseas markets is also a key strategy. The "sophisticated technology" and "craftsmanship" that we have cultivated through the tradition of our "dedication to the art of manufacturing" is something we would like to highlight and share with people overseas. We aim to achieve sustainable and organic growth by showcasing the quality of our products and reaching a global audience. 

Are there any other countries besides Japan where you think there are great opportunities?

I believe there are promising opportunities everywhere.

In recent years, we have been focusing on expanding the use of Liquid Shio Koji, a traditional Japanese seasoning. There is great potential for expansion not only in Japan but also overseas, and it is our mission to contribute to the enhancement and addition of value to various food cultures around the world. Currently, the adoption of Liquid Shio Koji is spreading widely in the United States, Europe, and Asia. Overseas, we have branch offices in the United States, China, Thailand, and a dedicated Liquid Shio Koji manufacturing factory; also in Thailand. Additionally, we emphasize working to propose recipes and methods of use adapted to and easily acceptable by the food culture of each region.

I mentioned communicating the value and benefits of the product. Perhaps not everyone knows about miso. As a leading company in miso related products, please tell us what miso is and the benefits of eating miso products.

I believe miso has three important advantages. First, the main ingredients are all natural: Soybeans, rice, and salt. In particular, the main ingredient, soybeans, is rich in protein; and because it is a vegetable protein it is also suitable for vegetarians.

Second, it is a fermented food. The soy protein is broken down into amino acids during the fermentation process, making it easier for the body to digest and absorb.

Third, they are flavorful and have umami. The abundant protein in soybeans is broken down by enzymes to produce peptides and amino acids, which create a strong umami flavor. I believe that the addition of fermented foods, such as miso and shio koji, to processed foods can enhance and improve the quality of foods.

Your company produces a wide range of miso products, including additive-free, low-sodium "oikoji miso" that uses koji to enhance maturity and flavor, and "dashi iri" miso that uses Yaizu bonito flakes and Hidaka kelp from Hokkaido. Which of your miso products are most popular? And how successful have they been outside of Japan?

Concerning the Japanese market, this market is very mature because miso and other fermented foods have been widely used for centuries. Therefore, it is important to find ways to differentiate our products. One example is Oi Koji Miso, a two-stage fermented miso launched in 2021. This Oi Koji Miso uses the “oi koji method,” which is a revival of a method we used 70 years ago. Adding more koji during fermentation produces a rich deep flavor, subtle sweetness, and strong umami not found in regular miso. This is just one of many examples on how we differentiate our products in the mature Japanese market.

On the other hand, miso is a relatively new product in the international market. Therefore, it is very important to communicate how to use it. We believe that our role is to provide ideas and suggestions on how to use miso and recipes that suit the cuisine of each region. Of course, this means we need to ensure that our products comply with local regulations and, in some cases, we aim to integrate miso and fermented foods with local food culture, while obtaining the necessary certifications for the local market. 

Your liquid shio koji product, launched in 2012, is unique in that your company is the only manufacturer of liquid shio koji. Made from natural ingredients such as fermented rice, koji, salt, and water, it contains no artificial additives, is an excellent flavor enhancer, helps retain moisture during cooking, reduces water loss, and has an effective masking effect, often outperforming soy and other alternatives. Sauce in certain applications. What makes this product special? And why do you think no one has thought of this before you?

As aforementioned, the Japanese miso market is very mature. Therefore, we needed to develop new products to grow our business into the future. This led to the innovation and development of a new product called "Liquid Shio Koji," which is a liquid version of "shio koji," a reinvention of a traditional Japanese seasoning. Common paste-like shio koji has the challenge that it tends to burn easily, but Liquid Shio Koji is less susceptible to burn. Also, the liquid type is definitely easier to handle and use when cooking. We have also obtained a patent for the manufacturing process of Liquid Shio Koji and, since its release in 2012, sales of this product have been increasing not only in Japan but also overseas. 

We have found that the product has been patented in other countries, including the United States, China, and Indonesia. This product is also a favorite of chefs in Paris. Why do you think this product has been so successful internationally and has been praised by chefs all over the world?

Top chefs are always refining and developing their cuisine and are actively trying to find something new to expand their range of recipes. One of these “something new” is how they have became aware of our Liquid Shio Koji. They are also interested in the high quality standard of Japanese ingredients; so even without our PR, chefs are already interested in Liquid Shio Koji. For example, the French star chef Christian Le Squer, who has three Michelin stars, discovered our Liquid Shio Koji himself and realized that it can be used in almost any kind of food, upon which he now utilizes it in the menus he serves. We also believe that the liquid version of shio koji is another reason why our seasoning, shio koji, is so easy to use and supported by our customers. Research on recipes is ongoing on a daily basis, and we believe that by blending our ideas with the chefs' ideas, we can create dishes and menus that have never been seen before. The fact that many chefs do not want to use additives and that many of them are interested in Japanese traditions are also reasons for their support. 

Do you have any product use cases you would recommend for first-time users?

One simple recommended use is to marinate boneless chicken breasts in Liquid Shio Koji and then cook, grill, or fry the chicken breasts. The enzymes in the Liquid Shio Koji break down the proteins in the meat, giving it a delicious flavor and making the chicken breast moist, tender, and very tasty. I myself often make fried chicken with shio koji. 

Following the success of "Liquid Salt Koji," we launched a new product, Koji Powder. This product shares several advantages with its predecessor, including improved flavor It is derived from the melanoidin formation process, giving it a deeper and longer lasting flavor. What are the benefits of powdered koji and why did you introduce this product?

As we proposed our product, we received many requests from customers for a powdered type of shio koji in addition to the liquid type. Koji Powder was developed in response to this need.

Aged Koji Powder is a powder made by heating and drying shio koji. It has a wide range of functions, such as enhancing the thickness of flavor and improving the durability of flavor through the action of melanoidin, which is a rich flavor component. For example, adding Koji Powder to ramen soup will deepen the flavor of the soup, and using it in spicy food with spices will enhance the spicy flavor. Additionally, markets that were difficult to approach, such as those related to premixes and seasonings, were now accessible where introduction of liquid or paste forms had been a hurdle. We expect to expand overseas sales channels for Koji Powder, as both the premix and seasoning sectors are very large, especially in overseas markets. Furthermore, there are many advantages to introducing this product overseas, such as reduced shipment costs and the ability to store it for longer periods of time in ambient conditions.

Aged koji powder

Recently, your company launched the Hanamaruki Brewery Koji Laboratory, a center for creative and innovative exploration in product research and development. This initiative has already brought premium products such as high-end raw miso and other attractive products such as salt koji cheese and salt koji pudding to the market. Can you tell us why you introduced this project and some of the new products you are currently developing?

I am confident in our "technical capabilities," as we have accumulated know-how over the 100 years since our founding, but we felt that we needed a way to make our "technical capabilities" known to the world. Therefore, we launched the new brand "Hanamaruki Brewery Koji Laboratory," which is separate from the Hanamaruki brand. Innovative products will be created that are not bound by conventional wisdom, such as the development of miso and koji ingredients using new technologies and the proposal of products that fit the lifestyles of the new era. In addition, now that the world is experiencing a Japanese food boom, we are developing products that will revolutionize the values of "koji" and "miso" of the past, and aiming to become a global brand with an eye not only on Japan but also on the world. Currently, we are considering new products related to shio koji and instant miso soup, and plan to release new products in the spring and summer of 2025. 

I am also interested in your oatmeal products. They are very popular in the U.S., but not so popular here in Japan. You have a very interesting lineup of flavors, such as kimchi and wasabi. What made you decide to introduce this lineup? And who is your target market?

I enjoy eating oatmeal and often take it when I go on business trips abroad. However, oatmeal is still not well recognized in Japan, and I believe it should be more widely known and consumed in Japan. The oatmeal products we sell are made with a variety of ingredients and flavors that are familiar to Japanese people. They also feature the convenience of being ready instantly by simply pouring hot water into the cup.

Which is your favorite?

Wasabi flavor.

In the food industry, partnerships play an important role, whether you are partnering with suppliers of raw materials or distributors to expand your market reach. Are you interested in expanding your international partnership network? If so, which partnerships in which countries would you find most valuable?

For Hanamaruki, both miso and shio koji are new seasonings in any country, so we believe it is very important to build good partnerships with distributors who have in-depth knowledge of the local market.

One very good example is our partnership with a family-owned company in Norway. Working with a Norwegian company, we have succeeded in gaining a bread manufacturer as a customer. They use shio koji in their bread-making process and recognize the value of utilizing shio koji. Our partners also fully understand our enthusiasm to “make it possible for many people to enjoy shio koji and fermented foods.” We strongly anticipate replicating this kind of partnership in other countries.

Your company is celebrating its 107th anniversary this year. Imagine that three years from now, on the occasion of your 110th anniversary, we will come back to interview you. What dreams and goals do you want to achieve in the next four years, and what message do you want to send to the world?

My goal is to spread the excellence of miso and shio koji, the “ancient” fermented foods of Japan, throughout the entire world. In three years as we celebrate our 110th anniversary, it will be merely a stepping stone toward this ultimate goal, which I would like to continue on as my lifelong mission.

For more information, please visit https://www.hanamaruki.co.jp/english.html