Nurturing value, developing talent, and conveying the original landscape of the "brewers’ village"

Yasushi Hosoda, President and CEO, Asahi-Shuzo Co., Ltd.

     [Contents]

• The shift to light and dry sake brought a "second founding" to the brewery

• Growing rice with the community and protecting the rural landscape

• Cultivating value; "Kubota" as a movement

• Producing sake of legendary quality with a sufficient quantity

• Developing talent; scientific transmission through data and intuition

• Questioning the fixed notions of "sweet” and “dry"

• “Japanese sake is mysterious”---Spreading its wonder and deliciousness to the world

1985, the year "Kubota" was born, marked a turning point for Asahi-Shuzo. It was a time that could be described as a "second founding" for them. Since then, the company has built brand value, nurtured talent, and preserved the natural environment that is the source of sake brewing. Through these efforts over more than 40 years, the community surrounding "Kubota" has grown. Asahi-Shuzo has developed the people and techniques involved in sake brewing and has passed down the original landscape of the "brewers’ village".

The Koshiji Town of Nagaoka City, Niigata Prefecture, is one of Japan's leading heavy snowfall areas. “Kubota,” the fine sake that brought the trend of light and dry sake to Japanese cuisine, was born in this place in 1985. The sixth president, Yasushi Hosoda, says, "There is no doubt that the birth of 'Kubota' was a 'second founding' for our company."

The sixth president, Yasushi Hosoda

Teiji Shima, the “father” of “Kubota,” had transitioned from director of the Niigata Prefectural Brewing Experiment Station to the factory manager at Asahi-Shuzo at the strong request of the fourth president, Toru Hirasawa. Shima was not only an excellent engineer, but also possessed the observational and insightful skills of a marketer.

According to Hosoda, "The social structure was changing from manual labor to desk work, and people's preference to tastes were also changing. While searching for 'drinkability' that suited the times, Mr. Shima decided to propose a crisp, light, and dry sake."

This will affect the quality of sake. As a contract farmer, I am also studying the amount and timing of fertilization." The relationship between Asahi Nouken and its contract farmers involves the sharing of knowledge that goes beyond the procurement of raw rice. The collaborative relationship has been thriving for over 30 years.

 Hosoda emphasizes, "Our business cannot exist without the cooperation of the local community and the natural environment."

The year after the launch of "Kubota," the "Koshiji Town Firefly Association" was established as part of nature conservation activities. Its secretariat is located within Asahi-Shuzo's premises. For many years, the company has worked hand-in-hand with local residents to preserve waterways and cultivate freshwater snails for fireflies.

At the heart of "Kubota" lies a philosophy and practice of cultivating value.

"My predecessor used to say, 'Alcohol isn't essential for survival. The reason people still buy it is because they recognize some kind of value in it.' If low pricing becomes the sole value, the company becomes unsustainable. We must pursue essential value that will make people choose us without discounts," says Hosoda.

Based on its high quality, "Kubota" has consistently enhanced its value through branding. This branding consists of the brand name embodying the founding spirit, the calligraphy on the washi paper label, and direct contracts with understanding liquor retailers.

"'Kubota' is not just a product; it's a collective term for an activity. It's a movement involving the manufacturer, liquor retailers, restaurants, and drinkers," says Hosoda.

"Kubota" is not simply sold as a product. Asahi-Shuzo's sales representatives have suggested to liquor stores, "Let's create a community space in a corner of the store," or have encouraged restaurants, "Let's increase the number of fans of your store." As they carried out these activities, word of mouth spread, and a "chain of value transmission" was created.

Amidst the “Kubota” movement, Asahi-Shuzo has enjoyed a period of favorable conditions. However, Hosoda's facial expression becomes serious as he states, "As time passes, the way we communicate value and the purpose behind it will inevitably change."

Taking promotional events as an example, he says, “We need to consider whether to broaden our customer base or to further refine it and target a niche market. We now need to re-examine for ourselves how and which aspects of Kubota's value we should communicate. Now is the time to approach 'Kubota' with the same level of passion as 40 years ago and to carefully consider these issues."

 Hosoda rephrases this as "creating a sake that doesn't distance itself from the average customer." In other words, balancing quality, quantity, and price. This commitment to uncompromising sake brewing while maintaining an accessible price range forms the foundation of the brand.

Even highly polished rice with a polishing ratio of 28% is processed using this equipment.

"This equipment has high overall control precision, so it is easy to make minor adjustments. For example, even if there is a little too much moisture during the soaking process, we can adjust it by removing the moisture during the steaming and cooling process," says Yamaga.

While striving to balance quality, quantity, and price through the advancement of its equipment, Asahi-Shuzo places great importance on human resource development and the transmission of skills.

To prevent the dissipation of skills and ensure systematic transmission, they began using year-round employees for sake brewing in 1992. In 1997, it introduced "educational brewing," where young employees learn on the job. Currently, all employees attend the "Asahi University Sake Brewing School," aiming to obtain Level 2 Sake Brewing Technician certification. Furthermore, the company continuously dispatches technicians to the "Niigata Sake Brewing School," jointly established by the Niigata Sake Brewers Association, the Niigata Prefectural Sake Brewers Cooperative, and the Niigata Prefectural Brewing Testing Laboratory. This school serves as a place for technical refinement and networking.

For instance, in addition to the basic "Kubota-Senju-," they developed "Senju-Junmai Ginjo-," "Senju -Ginjo Nama Genshu-," and "Senju -Akiagari-," expressing the differences in taste over time. The fragrant "Kubota -Junmai Daiginjo-" became a hit product within a few years of its release, following "Kubota -Manju-" and "Kubota -Senju-."

They also revisited sparkling sake, a project they had abandoned since their 1968 attempt. "Kubota -Sparkling-" offers a suitable option for pairing with Western cuisine and is popular in the restaurant market. It is gaining prominence along with new flavors such as "Kubota -Junmai Ginjo Nigori-".

Asahi-Shuzo has nurtured natural environment necessary for growing raw materials, refined brewing techniques, and developed people’s skills in collaboration with the local community. At the same time, it has communicated the value of "Kubota" to the market. Their continuous efforts have elevated "Kubota" from a mere product to a movement, maintaining its popularity for over 40 years.

"We envision a world where each customer has their own story of 'Kubota'," says Hosoda. "Even within Japan, many people associate 'wine' with delicious alcoholic beverages. However, if drinking 'Kubota' can inspire people to think of 'sake' as a delicious drink, it might change the future of Japanese sake overall."

Currently, Asahi-Shuzo exports to 38 countries. They are actively pursuing overseas promotion in cooperation with local companies. Hosoda believes that "instead of simply applying Japanese domestic communication to overseas markets, we should adapt our expressions to local customs and sensibilities." He describes sake as "a mysterious drink." He is willing to engage in thorough discussions to spread the wonder and deliciousness of sake to the world.