1. It is believed that wine was first made by the Sumerians, aborigines in Mesopotamia, around 6000 B.C., and had spread to Greece, Rome and other parts of the world by 100 B.C.
   
   
2. The liquor was introduced to Japan by a Portuguese missionary, Saint Francis Xavier, in 1549. Three centuries later, in 1870, the first domestic wine was made in Yamanashi Prefecture. At present, wine is made in different parts of the country from Hokkaido down to Kyushu, but Yamanashi Prefecture has about 70-80 percent of production. Wine consumption took off in Japan in 1970, when people were introduced to a variety of wines, along with cuisines from around the world, at Osaka Expo. This is now known as the first wine boom. Three more followed, then a fifth boom started in 1994, culminating in the biggest one of all in 1998.
   
   
3. There are several reasons for the growth in wine imports: 1) In the midst of growing concern about health among the Japanese, red wine was reported to be good for you, since it contains a lot of polyphenol which prevents sclerosis by controlling oxidization of cells; 2) Inexpensive but quality wine from Latin America and Eastern Europe has gained greater recognition; and 3) Domestic manufacturers have joined in price competition against low-cost imported wines, which has helped boost consumption both at home and in restaurants.
   
   
4. Wine can be roughly categorized into:
   1. Sparkling wines;
   2. Sherry, port and other enriched wines;
   3. Bottled wines (in 2-liter or smaller containers);
   4. Other wines (two types: 2 liters or larger, 50 liters or larger); and
   5. Vermouth and other vinous liquors
      
      
5. Imports of wine by category were:

   	1994	1996	1998
   Sparkling wines	7,738	10,463	13,401
   Sherry, port	617	762	793
   Bottled wines (2 liters or smaller)	27,162	40,885	143,876
   Other wines	1,764	3,030	10,269
   Vermouth	642	751	1,102
   Total	37,923	55,891	169,441

   
   (Unit: million yen Source: Japan Trade Monthly)

6. Principal countries of origin were:

   	1994	1996	1998
   France	23,128	30,949	89,811 (53.00%)
   Italy	2,898	7,777	24,530 (14.48%)
   Chile	215	1,000	12,408 ( 7.32%)
   U.S.A.	2,085	3,111	11,085 ( 6.54%)
   Germany	5,268	6,585	8,582 ( 5.06%)
   Others	4,329	6,468	23,024 (13.60%)
   Total	37,923	55,890	169,440 (100%)

   
   (Unit: million yen Source: Japan Trade Monthly)

7. As shown below, imports account for 50-60% of the Japanese market.

   	1993	1995	1997
   Domestic production	66,112	79,892	114,774
   Imports	66,693	109,679	147,439
   Total	132,805	189,571	262,213
   Imports share	50.2%	57.9%	56.2%

   
   (Unit: kl Source: National Tax Administration Agency)
   Note: Figures for imports are based on quantity of assessment.

8. In 1998, exports from Japan amounted to only \185,873,000, 97% of which was bottled wine. By destination, \123,232,000 in wine was exported to Taiwan, \44,000,000 to Thailand, \6,092,000 to Hong Kong, \2,898,000 to France, \678,000 to the U.S.A. and \8,973,000 to other destinations. It is highly likely that Japanese restaurants and grocers in Taiwan , Thailand and other countries are the main users.
   
   
9. When importing and marketing wine in Japan, the following needs to be taken into account.
   1. You need to apply for a liquor license at a competent tax office. Restrictions are imposed on types of liquors and marketing methods.
   2. You must follow the regulations stipulated in the Food Hygiene Law, such as those regarding the use of additives, as well as the Act for the Prevention of Unreasonable Premiums and Misrepresentation Concerning Products and Services.
   3. Imported wine is subject to a liquor tax.
      
      
10. Main distribution channels for imported wines include:
    1. Overseas manufacturers (bottled wine) �¨ Importers �¨ Retailers (liquor shops, supermarkets, department stores, etc.) �¨ Consumers
    2. Overseas manufacturers (bottled wine) �¨Secondary wholesalers (exclusive agencies) �¨ Retailers (liquor shops, supermarkets, department stores, etc.) �¨ Consumers
    3. Overseas manufacturers (bottled wine) �¨ Domestic manufacturers �¨ Primary wholesalers (exclusive agencies) �¨ Restaurants �¨ Consumers
    4. Overseas manufacturers (bulk wine) �¨ Domestic manufacturers �¨ Primary wholesalers (exclusive agencies) �¨ Retailers or restaurants �¨ Consumers
       
       
11. As the drink becomes an integral part of the Japanese diet and the number of potential consumers increases, the wine market in Japan is projected to expand as it polarizes into high- and low-end wines. Wine imports are expected to grow further as new products are introduced that meet the needs and preferences of the Japanese. Possible concerns include competition with low-alcohol beverages, such as the less expensive chuhai, cocktails and low-malt beer.
    

Acknowledgement: The Japan Wines and Spirits Importers Association