Will organic sake intoxicate consumers? Procurements of rice as bottlenecks and comparative procurement strategies by four brewers in Japan

Abstract

This study reviews the status of current organic sake and procurement strategies of organic rice by four brewers in Japan. Despite overall declining trends in shrinking domestic markets, sake categorized in the premium segment has been increasing in trading volumes and indicated resilience in prices. This study first reviewed and analyzed the overall status of sake, trends in premium segment, and challenges for organic sake. Unlike wine, organic sake occupies a minor position in the segment. This was followed by the comparative analysis of procurement strategies of organic rice for four sake breweries in Japan. The strategies were contrasting; three breweries indicated strong "local" bonding while one procured organic rice outside of the region, resulting in different product strategies. At its initiation, all four breweries showed the interests in local agriculture and gained rice locally. Then, availability and affordable price became a bottleneck. Implications of these challenges are further analyzed from exporting perspectives as well.