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Kobe Shu-Shin-Kan Breweries, Ltd. Corporate Profile A sake brewery that creates the future of food, agriculture, and local communities https://www.shushinkan.co.jp https://www.enjoyfukuju.com Sustainability Journey Kobe Shu-Shin-Kan Breweries, Ltd. CSR Report 1-8-17 Mikagetsuka-machi, Higashinada-ku, Kobe-shi 658-0044 Month of publication: August 2019 First Stage Production that keeps an eye on nature and people Kobe Shu-Shin-Kan contributes to society by creating sake and its culture, while pursuing the best quality and following the Nada region’s traditions of sake-making. Kobe Shu-Shin-Kan is a complex which is composed of four brewhouses. The “Fukuju” brewery, where “Fukuju” sake is brewed, the “Suimei” brewhouse, where the luxurious cellar restaurant “Sakabayashi” is located, the “Toumyou” brewhouse, which serves as our brewery shop, and the “Houmei” brewhouse (Shu- Shin-Kan Hall), which serves as a multipurpose hall. These are broadly classified into the three businesses i.e. brewery, restaurant, and sightseeing. Hand in hand with our customers, we are aiming at regional development by brewing sake and sharing seasonal cuisine, on the basis of local production and consumption. Outline of our business Brewery business Restaurant business Sightseeing business Fukuju brewery Suimei brewhouse Toumyou brewhouse Houmei brewhouse We offer our sake “Fukuju.” (Sakabayashi) (Brewery shop) (Shu-Shin-Kan Hall) We offer banquet-style dining which can We offer sake fresh from the brewery. We hold music concerts. be enjoyed with sake. We offer dishes that go well with sake, We hold performances such as classical We hold events where one can enjoy which are delivered from all over entertainment. sake and dishes. Japan. Origin of our sake’s name Company profile The brand name of “Fukuju” comes from Company name Kobe Shu-Shin-Kan Breweries, Ltd. Representative the god “Fukurokuju,” who is one of the Representative director and Director president Takenosuke Yasufuku Seven Lucky Gods in Japanese mythology. Location 1-8-17 Mikagetsuka-machi, We wish for the good fortune of everyone (head office) Higashinada-ku, Kobe-shi Year of May 1996 who enjoys our sake. incorporation Start of business 1751 Since 2008, our Fukuju Junmaiginjo Capital stock 60 million yen has been chosen as the sake for the banquet dinner of the Nobel Prize. Number of 49 people employees 37 males, 12 females (As of the end of June 2019) 1 Message from the president Sake making with the strength of the Rokko region Increased demand for sake will lead to more sales, and creating New traditions created through handed-down practices sustainable tourism will lead to increased tourists and increased The coastline of the Nada region in Kobe, where Kobe Shu-Shin-Kan and innovations consumption by tourists. Development of agricultural brands will is located, is dotted with sake breweries. The Rokko mountains in create more added value, and the sustainable development of Hyogo have contributed greatly to the development of this region's The essence of sake brewing is the combination of technology with the agriculture will create stable incomes for those involved. Moreover, sake breweries. forces of nature and life. positive ripple effects can be expected in many other areas from such The claylike soil of the mountain range was formed through the The continuation and development of sake brewing are efforts. weathering of granite. Especially in Ura-Rokko, which is on the north indispensable for understanding Japan's history, traditions, culture etc. In the end, drinking sake is an act of local consumption of local Rokko Terroir side of the mountain range, there is a large amount of nutrients which Furthermore, sake brewing forms the foundation for the positive future production. Aiming to become an innovative sake brewery which is are necessary for plants to grow, and this has contributed greatly development of culture. loved by its neighbors in the region, we want to contribute to the local to the region’s status as a rice producer. In addition, in Ura-Rokko, Kobe Shu-Shin-Kan will continue to pursue such ideals by production for local consumption with our customers. the climate is mild, with plenty of sunshine and little precipitation, combining passed-down traditions and new innovations. while there is a significant difference between daytime and nighttime I myself believe that we can create new traditions if we continue to temperatures. These conditions are just about perfect for the production pass down our time-tested methods to future generations in addition to Aiming at sustainable sake production of sake rice - thus making this region the home of 80% of Japan's being flexible and making new innovations to meet the demands of the production of “Yamada Nishiki” rice, so-called king of sake rice. times. For the first time, we are publishing a report, entitled “Sustainability Furthermore, miyamizu, which is the underground water from the In 1973, we developed the first freezing technology in Japan for Journey,” which details our company's sustainable practices. Rokko mountains, originates from rainwater which flows through the sake production, and began to sell frozen sake so that the youthful taste As the title states, we have decided to embark on a journey of granite of the mountains. Thus, this water is full of minerals such as can be enjoyed for as long as one wants. sustainability. While we have worked on countless environment- phosphorous and potassium, which feed the yeast in the sake-making With the retirement of our touji*2 (chief brewer) in 2007, we began oriented initiatives up to this point, we must admit that many of such process. to make sake produced by our employees only. For our production of initiatives did not have clear goals. Three of these underground water sources come together at the high-quality daiginjo sake, by adopting an innovative method which Just as there are always social challenges, we think that there are same spring. As a result, a miraculous phenomenon takes place. The entails making koji mold in a tub, we are able to make koji in an also always sustainable methods with which we can contribute to oxygen resulting from the combination of these three water sources ideal fashion. Our ideal of a combination of tradition and innovation society through our business. Furthermore, we think that we can make works to ensure that iron, which can have a harmful effect on the taste also means that we wish all our brewery workers to possess the same our initiatives more effective than ever by making our goals clear and of sake, has minimal effects. Therefore, this water is ideal for the skills as a chief brewer. To accomplish this ideal, we are making high- creating values towards future alongside coming up with solutions to making of sake. quality sake which is imbued with the spirit of the handicraft of sake- challenges. At Kobe Shu-Shin-Kan, we use rice produced in Hyogo Prefecture, making which has been passed down for countless years, in addition to We are constantly aiming at regional development through the the most prominent being the Yamada Nishiki rice, which we have building up know-how from daily studies. idea of “Production that keep an eye on nature and people,” based on reaped through the village rice system*1, in addition to utilizing Our products which we have created through the combination of local production for local consumption. At times, we may adopt new miyamizu water. tradition and innovation are recognized in many different fields. For technologies which may be unheard of in the sake brewing industry, Just as the concept called “terroir” which describes all the instance, at the National Research Institute of Brewing's National Sake and we may attempt to take up revolutionary innovations. This is environments of wine grapes to determine the taste and quality of Review, we have won the gold prize five years in a row and 17 times because it is our philosophy to create circulatory systems which reuse wine, at Kobe Shu-Shin-Kan, we are thankful for the Rokko region’s in total. In 2008, the banquet dinner of the Nobel Prize Committee, resources from the Rokko ecosystem which provides us with so much superior terroir which is a blessing to create high-quality sake. held in Stockholm, Sweden, gave us the honor of serving our Fukuju bounty. Junmaiginjo for the first time. Treasuring our deep bonds with local communities, we will continue activities which strengthen our business’ affinity with our Development of a local industry through the neighbors. Furthermore, we will continue to focus our efforts on being contribution of the sake business an exemplary brewery for sustainable sake production. From the bottom of our hearts, we wish for your continued support. Takenosuke Yasufuku Representative Director and From the standpoint of sake brewers like ourselves, we think that President regional revitalization through the development of local industries can stir demand for sake, create sustainable tourism in industrial or *1 Village rice system: A sake rice trading system which is established between brewers who desire business areas, develop agricultural brands, and contribute to the to produce high-quality sake rice and farmers who desire to deal with loyal clients sustainable development of agriculture. *2 Touji: The chief brewer - the person in charge of everything in the sake brewing process Sake-brewing that creates new traditions with repeated innovations and handed-down practices, while receiving the bounty of the Rokko mountains Yamada Nishiki Making koji mold Miyamizu Brewery workers (high-quality water for sake brewing) 2 3 ACTION Creating a sustainable system for sake brewing ACTION 01 ACTION 03 ACTION 06 applying an electrostatic coating to recyclable clear bottles, we have been able to maintain the performance of our old bottles.

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