Following the closure of its main export market in Russia, Saku Õlletehas is focusing on new markets, with Malta, Romania and Japan added to its export destinations this year, the company said in a press release.
“Our cooperation with Japan began with the Foodex Japan 2023 exhibition held last spring. It was this exhibition that became the starting point for cooperation with the Japanese retail chain, which owns more than 1,000 stores throughout the country,” said Margus Masing, export manager of the Saku Brewery.
According to Masinga, the Japanese market is highly regulated and entry into it takes a long time.
“To enter the Japanese market, it is not enough just to have a good product. Their high demands must be met in terms of quality, production processes and controls. We exchanged all information with the client – from the most stringent manufacturing requirements to the temperature at which the products were filled into cans. We also did a lot of tastings, sent out packaging samples and so on. The Japanese are very thorough, ask a lot of questions and want to be aware of all the details. In the summer of 2023, client representatives visited the Saku Brewery to ensure that our plant and production meet the high standards of Japan,” he noted.
Among the plant’s products, Saku Originaal, Saku Kuld and Saku On Ice will hit the shelves of Japanese stores.
Despite this, the company noted that it faces many challenges in connection with increasing export volumes, and the biggest obstacle to restoring exports and finding new markets is the significant increase in prices for raw materials.
“At some point, a situation arose when inflation in Europe and other countries was 6-7%, but in our country there was a record 20-25%. The resulting increase in product prices caused by such extreme inflation has reduced our competitiveness in existing markets and limited our expansion into new export markets. If our prices were competitive with other large European manufacturers, then given the quality of our packaging and products, Saku would have much greater potential,” Masing believes.
In 2023, Saku Brewery’s export sales reached 35 million liters. The brewery’s most popular export products are Saku Originaal, Karl Friedrich, Saku Kuld and Rock.
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