brand and bottle
Posted by Mark J. Miller on January 13, 2014 05:22 PM
Liquor giants Diageo and Pernod Ricard can start looking over their shoulders. Japan’s Suntory Holdings, which produces some of Japan’s oldest whiskeys, has just agreed to pay $16 billion for Beam Inc., the American producer of Maker’s Mark, Jim Beam, Sauza, and Gilbey’s, Ad Age reports. The deal makes Suntory the third-largest liquor company in the world.
As a result of the deal, Suntory, which also bottles Pepsi in Japan and owns the Orangina brand, will have greater distribution in the US and Beam, whose portfolio includes the lucrative Skinnygirl line, will have much stronger exposure in the Asian marketplace. That’s a pretty good deal for Suntory, which currently sources 90 percent of its business from Japan.
“Suntory has virtually no U.S. presence,” Mark Swartzberg, an analyst at Stifel Financial Corp., said in a research note today, according to Bloomberg. “This will take their share from less than 1 percent to 11 percent. Meanwhile, Beam stockholders will head to the bank with $83.50 for each share owned instead of the $66.97 share price that it last closed at." The two companies previously had a distribution deal in which Suntory distributed Beam products in Japan, and Beam distributed Suntory products in Singapore and greater Asia.Continue reading...
Posted by Dale Buss on January 10, 2014 06:27 PM
Ford is looking to make a huge impression at the Detroit auto show on Monday with the anticipated unveiling of a new version of its F-150 pickup truck, America's best-selling vehicle and the anchor of one of the largest lines of vehicles in the US market.
But meanwhile in Japan, Ford is trying to chip away at decades of frustrations in that market by fielding a tiny new vehicle that it believes gives the brand the best chance yet to crack what has always been a nearly impenetrable place.
The new car is a Fiesta tailored for global drivers, complete with advanced anticollision technology, a fuel-saving engine and its lowest price tag yet for a car it will sell in Japan—2.29 million yen, or $21,800, according to the New York Times.Continue reading...
Posted by Mark J. Miller on January 3, 2014 08:27 PM
Japan's Whiskey Boom
Japan isn’t the first country most people think of when contemplating the best whiskey in the world, but the country’s distilleries are in the midst of a boom time and production and exports are scheduled to go up this year, according to Reuters.
The concern, though, is that a similar boom suddenly died in the 1990s, which caused a few smaller distilleries to shut down. The hope is to not see a repeat of those events while producing enough whiskey to meet the currently rising demand.
"At the moment, no one can see this boom busting,” said Marcin Miller, an importer of small-batch Japanese whisky. "The difficulty is that you're making it today for 20 or 50 years' time."
So drink up, world.Continue reading...
chew on this
Posted by Dale Buss on December 20, 2013 01:46 PM
McDonald's woes in the United States are well-documented, but the brand actually has it worse in Japan. The McDonald's 50 percent-owned affiliate in that country plans to close dozens of outlets and slashed its full-year profit forecast by more than half.
Sales fell for five straight months through November in the world's third-largest economy, Bloomberg noted. The company blamed lower "customer numbers," the news service said. Presumably a 25 percent increase in McDonald's burger prices in Japan, which the chain indicated last spring it would implement, had something to do with the poor results as well.
The company also blamed expenses for outlet closures and store renovations aimed at luring more customers, which will be booked this year.Continue reading...
Posted by Dale Buss on December 19, 2013 12:41 PM
The world benefits from a variety of Japanese exports ranging from anime to sushi cuisine to Toyotas. But its auto market remains a redoubt of isolationism a generation after American carmakers made a political issue out of it. More than 90 percent of cars sold in Japan are still Japanese brands.
And this, according to the Wall Street Journal, has hurt Japan's automakers in ways similar to how Japanese smartphone makers have been handicapped around the world by gearing the features of their phones, sold globally, to the particular tastes of Japanese consumers.
"Their shortcomings led to the coining of the term 'Galapagos' to describe the market," the newspaper said. "Like the group of islands catalogued by Charles Darwin: uniquely evolved and ultimately at a disadvantage because of its isolation."Continue reading...
games people play
Posted by Sheila Shayon on December 12, 2013 10:05 AM
Japan is arguably the leader in the psychology of mobile gaming. “In Japan, each downloaded game earns three times the global average on Apple devices and six times the world-wide norm on Android devices, according to an App Annie report out yesterday.
“Better than any other country, Japan's mobile game makers have cracked the revenue code despite having few world-wide megahits,” says The Wall Street Journal. “The secret: an industry that is constantly experimenting with new ways to master the psychology of mobile payments.”
Cash from global games has placed Japan ahead of the U.S. in app revenue on phones and tablets overall, and App Annie reports that in October 2012, Japanese gamers spent 30 percent less than U.S. consumers on gaming apps, but this October, it reversed to roughly 30 percent more spent. Continue reading...
Posted by Dale Buss on December 6, 2013 07:14 PM
Nissan is crossing its fingers that its renewed growth in China won't be sabotaged again by geopolitical shenanigans in the East China Sea. But that's not all the Japanese brand is doing: Nissan is pursuing distinct new strategies for the low and high segments of the world's largest auto market, and elsewhere.
Overall, Nissan has forecast that its growth in China will outpace industrywide sales growth there for the first time in three years as consumers return to Japanese brands after Chinese auto buyers abandoned Nissan, Toyota and Honda in droves last year when a diplomatic row erupted between Japan and China over disputed islands and surrounding waters.
"Fortunately to date, we haven't seen the recurrence of the uproar in demonstrations and the violence targeting Japanese companies that happened" then in China, Joseph Peter, Nissan's CFO, told Bloomberg.Continue reading...
Posted by Adeline Chong on November 29, 2013 05:21 PM
Ask a few people on the streets of New York, Los Angeles, London, Sydney or Singapore to name Japan's most famous export and you are likely to get the answer "Toyota" or "Sony." What you are unlikely to hear are washoku (Japanese cuisine) or the brand Undercover (a coveted Japanese streetwear clothing label).
The Japanese government is hoping to change all that with the launch of the Cool Japan Fund this week. The Fund is aimed at promoting Japanese products such as food and beverage, clothing labels, crafts, and content such as anime and manga, that may have achieved popularity overseas but have not seen that popularity translate to profit, often due to the lack of a good business model, or lack of funding and foreign headquarters.
Any concerns about "Cool Japan" being just a marketing slogan ("Cool Britannia" comes to mind), can be put aside. Close to $1 billion has been committed to the fund—which aims to also help under-the-radar companies with great potential that would not have been able to flourish without the cash injection—to expand abroad. The funds will come mainly from public coffers, with a portion from private companies such as ANA Airlines and advertising giant Dentsu Inc., which are already on board.Continue reading...