November 21, 2024

Official Launch of Beaujolais Nouveau has Begun

Sales for the new French wine "Beaujolais Nouveau" began on November 21. Import costs have increased due to a weak yen and higher fuel prices, but there’s a clear trend towards maintaining stable prices due to low demand. Sapporo Breweries has halted sales. As Japanese wines gain popularity, competition is likely to increase, making it a challenging time for Beaujolais.

The decline is attributed to the growing variety of wine types and price points, coupled with a diminishing interest in Beaujolais, which is positioned as a new wine. According to Shinya Tasaki, chairperson of the Japan Sommelier Association, to boost demand, "We must highlight sake's charm beyond its being new, particularly its food-pairing potential." Beginning this year, Suntory plans to host promotional events aimed at encouraging enjoyment of Beaujolais during lunchtime, in hopes of revitalizing interest and demand.

Conversely, Japanese wine is gaining popularity. It is produced locally with indigenous grapes. A 750-milliliter bottle costs between 1,000 and 2,000 yen. As prices increase, "more people are weighing cost-effectiveness when choosing (luxury) wine" (Shinya Tasaki). Compared to Beaujolais, priced from 2,000 to 3,000 yen, Japanese wine appears more appealing affordable.

Japanese wine comprises merely 5% of the domestic market, significantly lower than the over 60% of imported wine. However, its popularity is on the rise. Mercian predicts that the market size for Japanese wine (new wine, based on value) will grow by about 17% in 2023 compared to 2019. A survey conducted by the National Tax Agency reveals that there are now 468 wine production facilities in the country that have shipped wine, marking a 27% increase since January 2020.

Major corporations are also enhancing the export of Japanese wine. Suntory plans to invest 700 million yen into its leading hub, Tomi no Oka Winery in Kai City, Yamanashi Prefecture, to construct a new brewing facility and boost production by around 1,000 cases each year. This expansion will focus primarily on exports to the United States and Europe.

Mercian aims to boost the share of exports in Japanese wine sales revenue to 20% by 2030, partnering with a prominent Chilean wine dealer. President Masamitsu Otsuka stated, "Japanese wine is gaining traction in Asia and the UK, so our goal is to expand both domestically and internationally."