Searching for treasure overseas

Does anyone know what Takara Shuzo are up to?

The giant producer, responsible for brands including Sho Chiku Bai, Shirakabegura, Tomatin and Takara, invested in the French Wakaze brewery in January 2023 through subscribing to part of a third-party allotment of shares, claiming that Wakaze’s success in catering to the French market and vision of sake as a global beverage aligns with their mission of bringing Japanese food and drink culture to the world. Wakaze raised USD $7.6M in a series B round of investment with the aim of expanding into the USA and China, and have reportedly partnered with Takara to make their products at a manufacturing facility of a Takara US subsidiary. Wakaze also aim to establish an office and hire staff n the US and expand their production facility just outside Paris. (“Japanese sake brewer Wakaze secures $7.6M series B to boost US, China expansion“, The Bridge)

One interesting distinction, made by Takara in the footnotes of the notice, is “traditional washu” (和酒, “Japanese drinks”), defined as “sake that meets the standards set forth in the Liquor Tax Act of Japan”, and “innovative sake”, defined as “innovative Japanese alcoholic beverages that expand the sphere of conventional washu”. And they aim to brew jointly with Wakaze, as well as educate and use their overseas Japanese food wholesaler network to expand their sales channels. (Investor relations notice, English)

And now a press release from 9 May 2023 announces a “strategic investment” in the Ontario Spring Water Sake Company in Canada, makers of Izumi. 

The press release doesn’t give much detail, other than Ontario Spring Water Sake Company founder and chairman Ken Valvur suggesting Takara will contribute its expertise to help Izumi improve their sake, and that Takara’s subsidiary Mutual Trading will help with distribution in North America. “Significant personal growth opportunities” are offered for the current Izumi team.

Masaharu Watabe, director of Takara, commends them having established a leading position in sake in Ontario with innovative and high quality products with wide appeal, and announces an intention to bring their products into Takara’s fast-growing North American market.

Seen Takara’s size and assumed resources, it may just be their way of getting some innovative outside influences for their own product development, or a bid to capture some non-Japanese sake as a gateway to their “traditional” products. Or?

Read press release