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The Mainichi
24-05-2025
- Business
- The Mainichi
What do rice varieties imported to Japan taste like? Appraiser says they're all good
TOKYO -- As rice prices remain high in Japan amid shortages, imported rice has become a more common sight in supermarkets. While it is indeed cheaper than domestic rice, how does it reach store shelves, and how does it taste? Over 10% cheaper than domestic rice Major supermarket chain Seiyu, headquartered in Musashino, Tokyo, began selling "Musubi no Sato," a Taiwanese short-grain rice variety similar to Japanese rice, in 5-kilogram bags from November 2024. As of mid-May 2025, the price was 3,769 yen (about $26) including tax, more than 10% cheaper than the average for domestic rice. Sales have apparently been strong, with a spokesperson commenting, "Amid rising rice and commodity prices, we considered a wide range of options. We decided to offer this product because its flavor and texture are close to those of Japanese rice." The "rice panic," where rice disappeared from store shelves, occurred in the summer of 2024. Shortages persisted even after the harvest season in autumn, and prices remain high despite the government releasing stockpiled rice. According to the agriculture ministry, the average price of rice sold in supermarkets nationwide from May 5 to 11 was 4,268 yen (around $30) per 5 kg, including tax. This was a 54-yen (approx. 40 cents) increase from the previous week and more than twice the price of the same period last year, which was 2,108 yen. Now, relatively inexpensive imported rice has become more prominent in stores. Expansion of private-sector imports The Japanese government imports about 770,000 metric tons of rice annually with zero tariffs under the "minimum access" quota based on the 1993 Uruguay Round of the General Agreement on Tariffs and Trade. Major import partners include the United States, Thailand, Australia and China, with about 100,000 tons designated for staple food use. The rest is used for processed foods like rice crackers or as feedstuff. Although the staple portions often went unsold at government auctions, all of it was successfully auctioned off in fiscal 2024 for the first time in seven years. The Taiwanese rice sold by Seiyu is also sourced through this framework. Recently, beyond the minimum access framework, trading companies among others are increasingly importing rice at a tariff of 341 yen (about $2.40) per kilogram. According to the ministry, private-sector imports expanded from 250 tons in fiscal 2019 to 991 tons in fiscal 2024 as of the end of January 2025. Kobe-based Shinmei Holdings Co., which is Japan's largest rice wholesaler and also counts a sushi chain among its group companies, had not imported rice before but plans to import 20,000 tons of American rice in fiscal 2025 for both business and retail sales. Retail giant Aeon Co., headquartered in Chiba, will also start selling a new product called "Karoyaka," 100% American rice imported outside the minimum access quota, mainly in urban areas starting June 6. It will be priced at 2,894 yen (roughly $20) for 4 kg, including tax. Imports not well accepted during 1993 panic Meanwhile, imported rice reminds many people in Japan of the rice panic of 1993, when the domestic crop failed drastically. At that time, rice from countries like the United States, China and Thailand was urgently imported and appeared on store shelves, but was not accepted well by consumers. Will the Reiwa-era rice crisis lead to a similar situation? "They're all sending good rice," says Hideyuki Suzuki, chairperson of the Japanese Association of Rice Taste Appraisers, headquartered in Osaka. The association annually holds the "International Contest on Rice Taste Evaluation" to compare the taste of newly harvested rice, with about 5,000 entries in the 26th edition in fiscal 2024. Suzuki, who has appraised rice from countries including the United States, Australia, China, South Korea, Thailand and Vietnam, in addition to Japan, emphasizes, "Rice from each production region has its own characteristics." Japan is known for its short-grain Japonica variety, characterized by its stickiness. It has a thick "umami layer" on the surface, making it shine when cooked. It retains moisture, so it doesn't harden over time, making it ideal for eating plain, Suzuki says. Short-grain varieties from China and Taiwan have almost the same characteristics as Japanese rice. In contrast, short-grain rice from South Korea has a lighter flavor, apparently making it easier to eat with rice bowls with toppings as the broth soaks into the rice. Long-grain varieties from Thailand and China have less moisture, making them suitable for pilafs and curries. They are also delicious when made into risotto with the core of the grain slightly undercooked. Medium-grain varieties, common in the United States and Australia, have a certain chewiness. Suzuki advises, "It's not that they're 'hard,' but they're ideal for those who want to enjoy the 'grainy' texture." Choosing based on more than just price According to the agriculture ministry, domestic demand for staple rice from July 2023 to June 2024 was 7.05 million tons. While staple rice from the minimum access quota accounts for about 100,000 tons annually, imported rice remains a small portion but may become more familiar in the future. Suzuki explains, "We always eat the world's best rice, which is Japanese, but we may be entering an era where rice from around the world becomes available. Instead of buying just because it's cheap, we should be wise in choosing, such as by having the knowledge to cook according to each rice variety's characteristics."
Japan Times
20-04-2025
- Business
- Japan Times
Japanese retailers trying to overcome soaring rice prices
The historic surge in rice prices in Japan has led retailers to seek alternatives, using less expensive ingredients like barley and noodles in bento meal boxes to curb prices and retain customers. Some retailers are expanding the sale of lower-priced foreign rice. In March, convenience store chain Lawson started selling the "Okazudon!" series of bento products, which contain less rice but more spaghetti and side dishes in order to reduce costs while securing volume. Due to the soaring rice prices, "the process from product development to sales has become more than twice as difficult as last year," President Sadanobu Takemasu has said. Natural Lawson stores, targeting health-conscious consumers, began to mix mochimugi chewy barley into rice for all chilled bento products, replacing a blend of rice and minor grains previously used in the products. Barley is less expensive than rice and is good for adding volume. The company is considering using mochimugi also in products sold at regular Lawson stores. Among supermarket chains, Seiyu last November began to sell Taiwanese rice for ¥2,797 per 5 kilogram. The price has risen to ¥3,229 because of higher procurement costs, but the product is still lower-priced than general domestic rice. The Taiwanese rice "sells out as soon as it appears on the shelves, and some stores suffer continued shortages," an official said. In April, Aeon began selling the Nisui no Takumi brand of rice, a blend of 80% U.S.-grown produce and 20% domestic produce. The price is ¥3,002 per 4 kg. The blend tastes "as good as domestic rice," a shopper said.
Wall Street Journal
05-03-2025
- Business
- Wall Street Journal
KKR, Walmart to Sell Japan Supermarket Chain Seiyu for $2.5 Billion
KKR KKR -9.19%decrease; red down pointing triangle and Walmart WMT -2.68%decrease; red down pointing triangle have agreed to sell Japanese supermarket chain Seiyu for about $2.5 billion to Japanese retailer Trial Holdings. The U.S. investment company plans to sell its 85% stake in Seiyu, with the U.S. retail giant selling the remaining 15% stake to Trial, the companies said Wednesday.
Associated Press
05-03-2025
- Business
- Associated Press
KKR to Sell Seiyu to Trial Holdings
KKR, a leading global investment firm, and Seiyu, a nationwide supermarket chain in Japan, today announced the signing of definitive agreements to sell Seiyu (the 'Company') to Trial Holdings, Inc. (TSE stock code 141A; 'Trial'), a distribution and retail business operator in Japan that operates a network of stores offering 'everyday essentials' in Kyushu. This transaction represents a significant outcome for KKR and follows transformational work that positions Seiyu strongly for continued success. This press release features multimedia. View the full release here: KKR first acquired a 65% majority stake in Seiyu from Walmart in 2021, before acquiring an additional 20% stake from Rakuten in 2023, taking KKR's shareholding to 85%. As part of the transaction, Walmart will also sell its 15% stake to Trial. As committed investors in Seiyu, KKR and Walmart have collaborated closely to support Seiyu's growth by focusing on improving operational efficiency, product quality and selection, profitability, and productivity through technology adoption. Since 2021, Seiyu has benefited from a range of value creation efforts, such as: Improving the quality and selection of products, especially for fresh produce, delicatessen, and Seiyu's popular in-house brands, which are all major revenue drivers for Seiyu; Developing standard operational processes and adopting technological solutions, such as self-checkout and automatic restocking systems, to aid workers, leading to solid man-hour productivity increases; Transforming Seiyu from a traditional General Merchandise Store (GMS) into a 'supermarket' by optimizing its product assortment and distribution strategies; and Accelerating Seiyu's digital transformation to enable superior customer experience, including through strengthening and modernizing its IT infrastructure. Hiro Hirano, Deputy Executive Chairman of KKR Asia Pacific and CEO of KKR Japan, said, 'We are incredibly proud of what we have achieved with Seiyu and our strategic partners Walmart and Rakuten over the course of our ownership, and how this has delivered tremendously for Seiyu's customers and our investors. Seiyu serves as an outstanding example of how global investors with deep local knowledge, global connectivity and know-how can help iconic Japanese brands and local champions unlock their full potential. We are confident that Seiyu is well-placed to build on its achievements and wish the company and Trial continued success.' Tsuneo Okubo, CEO of Seiyu, said, 'We would like to thank our longstanding shareholders, including KKR and Walmart, for their support, which has enabled us to create substantial value for our customers and business. Over the past few years, we have leveled up our merchandising strategies and in-store operational capabilities while reinvesting in our stores, employees, and IT capabilities as part of our transformation. We now look forward to building on this success with the support of our new shareholder Trial in Seiyu's next chapter.' KKR made its investments in Seiyu from its Asian Fund IV. The transaction is expected to close in the second quarter of 2025, subject to regulatory and customary closing conditions. About Seiyu Established in 1963, Seiyu is a nationwide supermarket chain in Japan with more than 240 retail units. Through its supermarket and hypermarket formats and Seiyu Netsuper delivery service, Seiyu offers customers a broad assortment including fresh food, general merchandise, and apparel products across Japan. About KKR KKR is a leading global investment firm that offers alternative asset management as well as capital markets and insurance solutions. KKR aims to generate attractive investment returns by following a patient and disciplined investment approach, employing world-class people, and supporting growth in its portfolio companies and communities. KKR sponsors investment funds that invest in private equity, credit and real assets and has strategic partners that manage hedge funds. KKR's insurance subsidiaries offer retirement, life and reinsurance products under the management of Global Atlantic Financial Group. References to KKR's investments may include the activities of its sponsored funds and insurance subsidiaries. For additional information about KKR & Co. Inc. (NYSE: KKR), please visit KKR's website at . Corporate Communications, Corporate Planning +81 4222 68 7102For KKR Wei Jun Ong +65 6922 5813 [email protected] Walmart KEYWORD: JAPAN ASIA PACIFIC SOURCE: KKR & Co. Inc. Copyright Business Wire 2025. PUB: 03/05/2025 12:10 AM/DISC: 03/05/2025 12:10 AM
Reuters
05-03-2025
- Business
- Reuters
Japan's Trial Holdings to buy supermarket chain Seiyu from KKR for $2.55 bln
TOKYO, March 5 (Reuters) - Japan's Trial Holdings (141A.T), opens new tab said on Wednesday it would spend 382.6 billion yen ($2.55 billion) to acquire the Seiyu supermarket chain controlled by U.S. private equity fund KKR (KKR.N), opens new tab. Trial said in a release it would use existing cash and newly arranged bank borrowings to purchase Seiyu and make it a wholly owned subsidiary. KKR bought a 65% stake in Seiyu from Walmart in 2021, before acquiring an additional 20% stake from Rakuten in 2023, the fund said in a separate release. Walmart will also sell its 15% stake to Trial, KKR said. Major retailers including Aeon (8267.T), opens new tab and Don Quijote-owner Pan Pacific International Holdings (7532.T), opens new tab were other bidders for Seiyu, the Nikkei newspaper reported last month. ($1 = 149.8100 yen)
