Japan´s first Master of Wine, Ned Goodwin, introduces us to this foreign and distant drinking culture. Far from being a new frontier in wine drinking, the land of the Rising Sun has seen other spirits rise –beer and sake-, yet it is open for new experiences, even if only in Tokyo. By Marta Lillo, AndesWines.com
AW: What has it been to live in Japan as a foreigner and a wine expert?
NG: Fascinating and certainly never dull, but that is more because of the cultural insights that living here provides, rather than due to any real dynamism in the wine market. The Japanese market is not particularly dynamic and will not be in the future either.
AW: Is Japan the new frontier in wine drinking?
NG: Far from it. The old frontier as far as Asia goes, perhaps.
AW: What is the market size of wine drinking in Japan?
NG: Just under 2 liters per capita consumption, with 70% of that concentrated in Tokyo. Thus, in essence, Tokyo IS the Japanese wine market.
AW: What brands are more popular in Japan?
NG: Regional brands are more popular than commercially labelled brands, per se, Bordeaux, Burgundy, Chablis, Chianti, Napa. That is about it. Otherwise, inexpensive volume-driven brands such as Sunrise, Carlo Rossi, Yellowtail are popular but not necessarily due to brand loyalty, but simply because they are inexpensive and appealing in these recessionary times.
AW: Have there been any alcoholic drinks legislative changes over the past 12 months that you find key for the wine market in general?
NG: No, not that I can think of. The free-trade agreement with Chile certainly raised Chile’s market penetration here albeit, that was more than 12 months ago.
AW: Has the alcoholic drinks industry in general been affected by the global recession?
NG: Of course. Beer and sake are on the decline. Wine is fairly stagnant as it has been for the last 12 or so years although I read figures that indicate some growth in volume consumed, especially at the (very) low price points.
AW: What is consumed more; beer, sake, wine or spirits?
NG: Beer. Wine would be last in the grouping, in volume terms.
AW: What have been the key trends seen in new product developments? Any Chilean brands among them?
NG: Slash discounting across the board, from on to off-trades, to obviate the need for trained and capable sales staff; Lower wages; little new product development as a result, although for a while there were wine brands touting their new health benefits due to ‘polyphenols’, bio etc. Domestic wine is also gaining attention. Right now the market is undergoing a paradigm shift from the on to the off trade. The traditional sommelier hegemony’s influence is waning, with huge opportunity for savvy buyers and sales leaders (trainers and motivators) in the off-trade.
NG: Do Japanese alcoholic drinks consumers want value for money or added value?
Perceived value for money.
AW: What would you recommend to wine producers in general when approaching the Japanese consumer?
Think hard. Know the right people on the ground. Choose your distributor carefully. Make regular visits. Prepare yourself for language barriers and a culture that is as frustratingly uninternatioal and inflexible, as it is fascinating and rewarding. Things do not get done fast in Japan and there are many cultural hurdles. Currently, few industries can compete with the downward price spiral, aside from Chile and to a lesser extent, perhaps, Spain. Understand that perceptions of the Old World are largely positive and regimented and that traditional OW regional brands hold sway, even in this climate. Few people taste with their mouths, but rather, with their eyes.
Andes Wines
Twitter @andeswines
