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A Sip of Luxury: The Private Sake Brands Changing the Japanese Market

Private sake brands are gaining popularity as a way for companies to offer a unique and exclusive product to their customers, with complete control over the brewing recipe, packaging, and labeling. These brands also offer higher margins, allowing for more investment in marketing and promotion, and have become a popular option for companies looking to differentiate their products and build a unique brand identity.

A Sip of Luxury: The Private Sake Brands Changing the Japanese Market

Written by

Sakura Sake Shop

May 6, 2023

3

min read

Sake Industry

Sake

A Sip of Luxury: The Private Sake Brands Changing the Japanese Market

Private sake brands are gaining popularity as a way for companies to offer a unique and exclusive product to their customers, with complete control over the brewing recipe, packaging, and labeling. These brands also offer higher margins, allowing for more investment in marketing and promotion, and have become a popular option for companies looking to differentiate their products and build a unique brand identity.

Written by

Sakura Sake Shop

May 6, 2023

3

min read

Here is an overview of 7 private sake brands promoted in Japan:

  • SAKE HUNDRED
  • MINAKI
  • TAKANOME
  • 夢雀 MUJAKU
  • WHITEDROP
  • SAKE NOVA
  • SAKETOKE
Private sake brands overview including SAKEHUNDRED, MINAKI, TAKANOME
7 private sake brands promoted in Japan

Recap: What is a private sake brand?

Private label sake is a type of sake that is becoming increasingly popular in the beverage industry. Essentially, private label sake is sake that is brewed specifically for a buyer and sold under a different brand name. This is similar to the concept of original equipment manufacturer (OEM) products, where a product is manufactured by a contract manufacturer for a buying party to sell under their own brand.

When it comes to private label sake, the importer or distributor has complete control over the brewing recipe, packaging, and labeling. They identify the right partner brewery to work with, and the sake brewery is paid to produce the specified sake. The buyer is responsible for the label design, branding, and marketing of the sake. As a result, private label sake can be a great way for companies to differentiate their products and build a unique brand identity.

However, it's important to note that there are often minimum order quantities for private label sake. This is because the brewery has to commit a tank or production slot in their busy brewing schedule to produce the specified sake. Despite this requirement, private label sake is still a popular option for companies looking to offer a unique and exclusive product to their customers.

Why private sake brands are booming?

Private sake brands are experiencing a surge in popularity for a number of reasons. In comparison to wine and whiskey, for instance, there are fewer high-priced premium sake products available. This may be due to the fact that sake is not typically sold at a price point that makes it a suitable souvenir or gift. However, to sell sake at a higher price point, it is necessary to not only enhance the taste, but also to create a compelling brand story and an elevated customer experience to justify the premium price.

While the distribution side of the sake industry typically operates with a small profit margin of 25-30%, private label owners can expect much higher margins of over 50-70%, depending on their price strategy. This allows them to invest a significant portion of each sale into marketing and promoting their brand, which can include social media and search engine ads. With better cost structures than traditional sake, many companies have recognized the opportunity to tap into the high-end sake market and have launched their own premium sake brands.

Private sake brand players in Japan

SAKE HUNDRED

Clear Corporation, the operator of sake media "SAKETIMES”, has launched its own unique brand. With the development of six breweries and eight products, this brand has quickly become a major player in the industry. In fact, it is expected to exceed monthly sales of 300 million yen by 2021, solidifying its position as a leader in this category.

MINAKI

Kenji Minaki, an entrepreneur with experience in EXIT, launched a new high-end sake brand in 2022 through REBORN Corporation. The brand currently features a selection of two Junmai Daiginjo sakes and one Sparkling Sake option.

TAKANOME

TAKANOME is a high-quality sake brand from Forbul Corporation that focuses solely on achieving the perfect "umami" flavor. To purchase this sought-after product, interested customers must participate in limited online sales that take place only on Wednesdays at 9:00 p.m. TAKANOME continues to sell out quickly due to its popularity.

夢雀 MUJAKU

ARCHIS Co., Ltd. has introduced an exclusive brand of ultra-premium sake that is generating buzz due to its high price point of 96,800 yen for a 750 ml bottle. In fact, it was rumored to have been sold for as much as 600,000 yen per bottle in Dubai. Additionally, the company now offers vintage products, including a 2016 brew that is available for purchase domestically at a retail price of 646,800 yen.

WHITEDROP

WHITEDROP is a brand created by Yu Matsuke, a member of Generation Z born in 2000, with the goal of promoting the value of traditional industries to both younger generations and the world at large. The brand was originally launched with the 375ml Omomuki brand, which focused on the concept of providing a little white space for the consumer. Recently, the brand was rebranded and now operates under the name WHITEDROP. The bottles of this high-quality sake sell for around 15,400 yen.

SAKE NOVA

Sakeai, the sake app operated by 3 young entrepreneurs from Niigata, just launched their own high-end sake brand. The SAKE NOVA bottle sells for 27,500 yen and produced by Iberaki-based Raifuku Brewery.

SAKETOKE

Yet another private sake brand is called SAKETOKE. This brand is currently promoted in a crowdfunding campaign. The label designs looks promising.

Conclusion

Some might argue that this top-down approach of elevating the overall value of sake not really contributes to the growth of the sake industry. Another say that this branding is necessary to compete with other commonly enjoyed alcohol beverages like wine or whiskey.

If you want to explore the opportunities to launch your own private brand, leave us a message here.

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