Office of Agricultural Affairs Royal Thai Embassy Kotaki Terrace C. 3-13-22, Meguro, Meguro-ku, Tokyo 153-0063

Report for Research Study Project On Development of Special Food Products From Thailand for the Aging Japanese

August 4, 2010

Key Research Net Corporation Riki-Bldg No. 11, 7-5-34, Akasaka, Minato-ku, Tokyo Tel: 03-5563-0868 Fax: 03-3583-5555 URL: http://www.keyresearchnet.jp

Table of Contents (Development of Special Food Products from Thailand for the Aging Japanese)

Executive Summary ------1 I. Current state of the aging society and the market of food for aging people in Japan ------4 (1) The Status of Aging Society------4 (2) Situation of aging people ------8 (3) Trend in the development of foods for aging Japanese ------8 (4) Outline of the food market for senior persons ------9 (5) Size of food market for aging Japanese ------9 II. Types of Food for the aging people ------13 (1) Ordinary food products ------14 (2) Universal Design Food (Food for the people in need of nursing care) ------16 (3) Food for Special Dietary Uses" ------21 1. What is the “Food for Special Dietary Uses "? ------21 2. Transition of the labeling system related to special usage ------21 3. Food for Specified Health Uses ------22 4. The application procedures of the "Food for Specified Health uses" ------23 5. Market situation of the "Food for Specified Health Uses" ------23 1) Market of the "Food for Specified Health Uses" ------23 2) Distribution channel of the "Food for Specified Health Uses” ------25 3) Cost for obtaining the certification of the “Food for Specified Health Uses” ------27 4) New system of the "Food for Specified Health Uses" ------28 6. Market trend of the therapeutic diet ------29 7. Situation of the metabolic syndrome ------30 1) What is the metabolic syndrome? ------30 2) Diagnostic criteria for the metabolic syndrome ------30 3) Number of patients of the metabolic syndromes ------30 4) Market related to the metabolic syndrome and the outlook ------31 5) Product for the cholesterol control ------32 6) Products for the neutral fat control ------36 7) Prevention of the obesity ------38 8) Products for the high blood pressure control ------38 9) Products for the blood sugar level control ------38 10) Aging people and foods related to the metabolic syndrome ------39 III. Important distribution Channel of food for aging people ------40 (1) Important Distribution Channel ------40 1. Elderly nursing home and hospital as main distribution channels ------40

2. Retail store sales and mail order sales ------40 (2) Drug store sales ------47 1. Kusuri no Katsumata /Mizonokuchi Shop ------47 2. Anshin Support Shop/Ito Yokado Tama-plaza Shop ------47 3. Natural Pocket/Tokyu Department Store Tama-plaza Shop ------47 (3) Product examples of foods for aging people and heath foods handled in Television mail orders ------48 (4) Food for aging people at elderly care facility ------48 1. No. of elderly care facility is about 10,000------48 2. Elderly Taking Care Home “Toyokawa no Sato”, Osaka (Governmental elderly care facility) ------50 3. Elderly Taking Care Home “Ryokuju no Sato”, Shizuoka (Non-governmental elderly care facility) ------51 IV. Market trend of food for aging people ------52 (1) Companies entering to the food category for aging people and product trend----- 52 (2) Difficulty in appealing to consumers ------52 (3) The status and future perspective of the food market for aging people and for persons in need of nursing care market ------53 V. Sales promotion strategy of food for aging people ------54 (1) Advertisements in television, trade journals, general magazines, and free papers ------54 (2) Information offerings through the Internet ------54 (3) Promotions in storefronts, hospitals, and nursing care facilities for aging people ------55 (4) Tie-ups with associations and academic societies, etc. ------55 (5) Mail order catalog ------55 (6) Present and great discount at the first order ------56 (7) Participation in exhibitions ------56 (8) Execution of campaign and use of image character ------56 (9) Use of customer management system ------56

VI. Studies of Public Research Laboratories, Institutes, Universities etc. on Food for aging people ------57 VII. Rules and regulations related to production and sales of foods, and safety of foods for elderly ------63 (1) Food Sanitation Law ------63 (2) The Law Concerning Standardization and Proper Labeling of Agriculture and Forestry Products (Law for JAS) ------68 (3) Food Safety Basic Law ------69 (4) Pharmaceutical Affairs Law ------70 (5) Act Against Unjustifiable Premiums and Misleading Representation ------71 VIII. Government and companies initiatives for the safety of food------73 (1) Establishment of Consumer Affairs Agency ------73 (2) Inspection of safety of import foods under Food Sanitation Law ------74 (3) Companies initiatives for the safety of food ------75 IX. Trend of healthy foods and foods for elderly people seen in exhibition -- 76 (1) Current Situation of Medical Care Foods and Nursing Care Foods seen in the Medi-Care Foods Expo ------76 (2) Health Ingredients Japan 2009 ------83 X. Japan's Imports and Exports of Food for aging people ------87 (1) Research and Development of Food for aging people in Asia Markets ------87 (2) Exports of Functional Food to China ------87 XI. Advices to Thailand ------88

APPENDIX-1. Popular foods for aging people and their prices in the Japanese retail market ------89 APPENDIX-2. The Manufacturers and Food Products for Aging People ------97 APPENDIX-3. Foods for aging people / Companies and Associations ------99 APPENDIX-4. Interview Report ------102

Executive Summary

Introduction The aging society is progressing in Japan with a factor of the decline in mortality. After the war, the substantial decline in mortality of babies and young persons has been realized due to the improvement of living conditions, improved eating habits and nutritional status, and advancement of medical technologies, etc. The life expectancy in 2008 of men and women went up to 79.29 years and 86.05 years while that in 1947 was 50.06 years and 53.96 respectively. The people aged 65-year-old or more are called the "aging people" in Japan. As of Sept 15, 2009, of the total 127.56 million population of Japan, that of the aging people amounted to 28.98 million, accounting for 22.7% of the total. The number of those who have various physical troubles with aging has increased because aging people stage is extending with longer life expectancy: they are those with weakened functions in swallowing, chewing and digestion, those with lowered appetite, physically disabled persons, those in need of nursing care, physically weak persons, those who cannot manage to cook for themselves physically, and those who cannot intake necessary and sufficient nutrition, etc. Given the situation, the food industry has been paying a high attention on foods for aging people as a new market. Food for aging people There is no clear definition and/or standard in "Food for elderly". They refers generally to foods for those with weakened chewing and digestion due to the aging, and for physically disabled persons, and also devised foods in some ways for those in need of nursing care, which are easy to cook, easy to eat and easy to clean up after meal, etc. In addition, health supplementary foods and functional foods can be included in foods for aging people in a broad sense, because many of those with weakened functions of the body with aging are using them. More specifically, these foods are in such forms as frozen foods and chilled foods, etc. in the market. They are cooked and softened foods and foods in paste or jelly for persons with weakened digestion and chewing. There are also many types of functional foods and health supplementary foods available in the market, which many aging people are using. The market size of foods for the aging people of Japan is estimated to be about 1.7 trillion yen in 2009. The “Food for Special Dietary Uses " refers to food for physically weak persons, food for those with difficulty in swallowing, food for babies, food for pregnant women and nursing mothers, and "Food for Specified Health Uses", etc. They can label the suitability of special uses under the permission of the Minister of Health, Labour and Welfare. Many of foods for aging people are included in the “Food for Special Dietary Uses ". Among foods under the “Food for Special Dietary Uses ", those with bigger market sizes are foods under the "Universal Design Food" and "Food for Specified Health Uses".

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Universal Design Food The Japan Care Food Conference has established the “Universal Design Food”. It is for foods for persons with difficulty in chewing and/or swallowing who are frequently seen among those at a recovery period from illness or in nursing care. There are the four classifications of foods and one product type under the "Universal Design Food": the four classifications are "Easy to bite", "Easy to crush by gums", "Easy to crush by tongue" and "Not necessary to bite", and one product type is "Food Thickener.” The necessity of the "Universal Design Food" has risen as aging people has been increasing every year, and the foods have been used widely and rapidly among those with some disabled function. Many families who have persons in need of nursing care provide meals cut in pieces and/or meals made in the mixer for them. On the other hand, the number of families who use the "Universal Design Food" in need of efficiency has increased. Food for Specified Health Uses The "Food for Specified Health Uses" is a system enacted in 1991, referring to foods that passed the examination by the Japanese Government based on experimental data and were authorized to label their effect-efficacy by the Japanese Government. Recently, the number of those who have lifestyle-related diseases with the metabolic syndrome being on top has been increasing. Given the situation, the number of aging people who are using the "Food for Specified Health Uses" has been also increasing while the foods draw attention as the ones for sick prevention and treatment. Among types of foods in the "Food for Specified Health Uses" selling well in the market are ones for blood pressure control, ones for decreasing cholesterol, ones for decreasing body fat, and ones appealing effects on intestinal disorders, bone functions and obesity measures, etc. The market size of the "Food for Specified Health Uses" is estimated at 800 billion yen on the base of makers' suggested retail price in 2009. It is certain that the "Food for Specified Health Uses" market will expand for aging people in future. In particular, foods for decreasing cholesterol, for decreasing body fat and for blood pressure control would be growing in future. Trend of food market for aging people There is a sense of resistance for aging people and persons in need of nursing care to purchase foods with labeling of "Nursing meal" and "For aging people". There are people who do not purchase such types of meals as they manage to slice them in pieces or make them in paste by themselves to some extent. Regardless of such an obstructing factor for the market growth, it is certain that the number of users will increase more and more in Japan for nursing meals centering on the "Universal Design Food" and functional foods centering on the "Food for Specified Health Uses" in future. Therefore, the food market for aging people will be expectedly expanding while the aging will be advancing more and more. Distribution of foods for aging people Foods for persons with difficulty in chewing are sold in retail stores, however many of them are

2 handled through such facilities as hospitals, "Health Services Facility for Aging People in Need of Nursing Care", and "Intensive Care Home for Aging People ", etc. In addition, the number of companies that focus on mail order sales has been increasing. This is because home users have been on an upward trend. There are many health supplementary foods and functional foods centering on the "Food for Specified Health Uses" sold through newspaper mail orders, television mail orders, and internet shopping, etc. as well as at supermarkets and drugstores. Sales promotion strategy of food for aging people There are big differences in terms of sales promotion strategies between special foods such as the one for physically weak persons and for persons with difficulty in swallowing, etc. and the ones of the "Food for Specified Health Uses" and functional foods, etc., which are also used by ordinary persons. The special foods such as the one for physically weak persons and for persons with difficulty in swallowing, etc., the companies try to have patients and dwellers of the facilities actually take the foods as one of their promotion activities. In addition to this, many companies run their sales promotions in cooperation with related societies such as the Japan Care Food Conference, etc. and academic societies, etc. On the other hand, with the "Food for Specified Health Uses" and functional foods, etc., sales with sample product tasting is conducted at storefronts of supermarkets and drugstores, etc. At the same time, many companies run advertisements in newspapers, TV and internet, etc. Law and regulations related to import and sales of food for aging people There is no special law related to the import of food for aging people. The Food Sanitation Act, the Japanese Agricultural Standard, the Food Safety Basic Act, the Pharmaceutical Affairs Act, and the Act against Unjustifiable Premiums and Misleading Representations, etc., which are applied to the ordinary food, are also applied to the food for aging people. The "Food for Specified Health Uses" can claim its efficacy since it is authorized by the Ministry of Health, Labour and Welfare. However, there are increasing numbers of general health supplementary foods and functional foods, which are displaying exaggerated expressions such as "Effective to cancer, “you can lose weight", etc., although they cannot claim them. The Consumer Affairs Agency that has taken its place recently has started regulating such false and extravagant advertisements severely, under the Act against Unjustifiable Premiums and Misleading Representatives.

Advices to Thailand The following approaches are recommendable for Thailand to enter the Japanese market of foods for aging people. 1. To supply raw materials which Thailand is good at producing to Japanese food manufacturers for aging people. They include chicken, fruits, and marine products such as prawn and minced fish, etc., for instance. 2. To develop foods for aging people by using raw materials of Thailand in cooperation with

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Japanese public research organization and/or private research laboratories. 3. To obtain the permission of the "Food for Specified Health Uses", which can label its effect-efficacy, by using raw materials of Thailand, in cooperation with Japanese businesses. The "Food for Specified Health Uses" and functional foods are widely used by not only aging people, but general consumers as well. 4. To introduce production techniques of foods for aging people from Japan, which are in a world class, and then to produce and export the foods using raw materials of Thailand. 5. To prepare for the coming aging society in Thailand by studying well current Japanese food market for aging people.

I. Current state of the aging society and the market of food for aging people in Japan (1) The Status of Aging Society Aging society is now progressing in Japan. This is because, first of all, of the mortality reduction as one factor. After the war, the mortality of babies and young people greatly decreased by the improvement of living conditions , eating habits and nutrient status, and the advancement of medical technologies, etc. The data of the Ministry of Internal Affairs and Communications shows that the mortality rate per 1,000 populations dropped in half from 14.6 in 1947 in about 15 years. Since then, the mortality rate had been on the downward trend, although it has been marginally rising since the beginning of the Heisei era. The second factor of the progressing aging can be referred to the extension of the average life span in tandem with the mortality reduction. The ones for a male and for a female were 79.29 years and 86.05 years in 2008 respectively with a great increase from 1947 when 50.06 years and 53.96 years for each were registered. (Table I-1, Graph I-1)

Table I-1.the average span of life male female 1947 50.06 53.96 1955 63.60 67.75 1965 67.74 72.92 1975 71.73 76.89 1985 74.78 80.48 1995 76.38 82.85 2000 77.72 84.60 2002 78.32 85.23 2003 78.36 85.33 2005 78.56 85.52 2007 79.19 85.99 2008 79.29 86.05

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Source: Statistics Bureau, Ministry of Internal Affairs and Communications "Aging society white paper 2009"

Graph I-1.the average span of life

(age) 90.00

female 85.52 85.99 86.05 84.60 85.23 85.33 male 82.85 80.00 80.48 78.56 79.19 79.29 77.72 78.32 78.36 76.89 76.38 74.78 72.92 71.73 70.00 67.75 67.74

63.60

60.00

53.96

50.00 50.06

40.00 1947 1955 1965 1975 1985 1995 2000 2002 2003 2005 2007 2008 (year)

The expected life span at the time of 65-yrs old was 10.16 years for a male and 12.22 for a female in 1947. They extended up to 18.60 and 23.64 respectively in 2008, which shows that an aging period continues longer. Of the total 127.56 million population of Japan as of Sept 15, 2009, that of aging people aged 65 years old or over amounted to 28.98 million by 800,000 increase vs. last year. This population of the aging people is the biggest in the history, accounting for 22.7% of the total (this refers to the aging rate) by a 0.6-point increase vs. last year. Looking at the aging population aged 65 years old or over by gender, the male's is 12.39 million and the female's is 13.59 million. The gender ratio became 74.7 (male's population against 100 females). When it comes to an age breakdown. 65 to 74-year-old population accounts for 15.28 million while the population of 75-year-old or over accounts for 13.7 million. (Table I-2)

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Table I-2.Aging population and ratio unit: million(population), %(ratio) Total Over 65 Over 70 Over 75 population years old years old years old Total 127.56 28.98 20.60 13.70 Population (million) Male 65.16 12.39 8.38 5.19 Female 65.41 16.59 12.21 8.51 15-Sep-09 Total 100.0 22.7 16.1 10.7 Per total population (%) Male 100.0 19.9 13.5 8.4 Female 100.0 25.4 18.7 13.0 Total 127.68 28.18 20.16 13.20 Population (million) Male 62.24 12.03 8.19 4.98 Female 65.43 16.15 11.97 8.22 15-Sep-08 Total 100.0 22.1 15.8 10.3 Per total population (%) Male 100.0 19.3 13.2 8.0 Female 100.0 24.7 18.3 12.6 Source: Statistics Bureau, Ministry of Internal Affairs and Communications “Estimated Population”

The aging population aged 65 yrs. old or over accounted for 7% of the total in 1950, and it exceeded 7% in 1970 when it began to be called as an "Aging society”. It exceeded further 14% in 1994, moving into an "Aged society", and progressing rapidly even as of now. "Population Projections for Japan" (estimated in December, 2006) by the National Institute of Population and Social Security Research estimates that the aging population will rapidly increase even further until 2020. Then, it will be most likely leveling off. On the other hand, as the total population has turned into a decreasing trend with the peak at 2006, the rate of the aging population will be on the upward, expectedly resulting in becoming an extremely high aging society.

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Table I-3. Present population and future estimate of aging people (unit: thousand) Population of aging Population of 65-74 Population of over people years old 75 years old 1950 4,155 3,086 1,069 1955 4,786 3,387 1,399 1960 5,398 3,756 1,642 1965 6,236 4,342 1,894 1970 7,393 5,156 2,237 1975 8,866 6,025 2,841 1980 10,648 6,988 3,660 1985 12,469 7,757 4,712 1990 14,899 8,921 5,978 1995 18,261 11,091 7,170 2000 22,006 13,007 8,999 2005 25,672 14,070 11,602 2010 29,412 15,190 14,222 2015 32,781 17,329 15,452 2020 35,899 17,162 18,737 2025 36,354 14,687 21,667 2030 36,670 14,011 22,659 2035 37,339 14,987 22,352 2040 38,527 16,382 22,145 2045 38,408 15,937 22,471 2050 37,640 13,912 23,728 2055 36,563 12,597 23,966 Source: Statistics Bureau, Ministry of Internal Affairs and Communications "Aging society white paper 2009"

Graph I-2. Present population and future estimate of aging people

(unit: thousand) 45,000

40,000 Population of over 75 years old Results Estimate Population of 65-74 years old 35,000

30,000 22,14522,471 18,737 22,352 23,728 25,000 15,452 21,66722,659 23,966 14,222 20,000 11,602 8,999 15,000 7,170 5,978 10,000 4,712 3,660 17,32917,162 2,841 15,190 14,98716,38215,937 13,00714,070 14,68714,011 13,912 2,237 11,091 12,597 5,000 1,6421,894 1,0691,399 6,9887,7578,921 5,1566,025 3,0863,3873,7564,342 0

1950 1955 1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010 2015 2020 2025 2030 2035 2040 2045 2050 2055(year)

Looking at the rate of aging population by prefectures, the three major megalopolises centering on Tokyo, Osaka and Nagoya tend to have lower ones compared to the other areas'. 7

It is projected that the rate will be rising in all prefectures, ending up reaching up to 28.7% on the national average. In particular, the aging will expectedly advance faster in the three major megalopolises such as the metropolitan area.

(2) Situation of aging people When comparing family budgets of households of householders aged 65 or over between workers' households' and households without earners, the former’s ends up with the surplus of 43,368 yen while the latter’s with the deficit of 40,696 yen. This indicates that the latter households make up for the deficit by breaking savings, etc. (Table I-4)

Table I-1. Income and consumption of households of householder's age is 65 years old or over (Monthly average in a year) (unit: Yen) Workers' households Households without earners Households Households of Item of Total householders Total householders aged 65 yrs. aged 65 yrs. old old or over or over Income 482,490 339,519 175,940 185,971 Expenditures 373,624 296,151 230,589 226,667 Consumer expenditures 296,725 258,364 210,520 207,841 Non-consumption expenditures 76,899 37,787 20,069 18,827 (tax, social insurance, etc.) Disposable income 405,591 301,832 155,870 167,144 Surplus 108,866 43,368 ▲54,650 ▲40,696 Average propensity to consume (%) 73.2 85.6 135.1 124.3

Of the total consumption expenditures of households of householders aged 65 yrs. old or over (two-or-more-person households excluding households of agriculture, forestry and fisheries), food accounts for 25.3%, which is high. However, it has been decreasing in trend wise since 1980's. The rate of expenditure for food tends to be higher in the households of householders aged 65 yrs. old or over, compared to the other age groups.

(3) Trend in the development of foods for aging Japanese Japan is now rapidly heading for an aging society. It is estimated that the population of people aged 65 years or higher will account for about 30% of the total population in 2030. In addition, according to a survey conducted in 2008 by the Ministry of Health, Labor and Welfare, about 2.5 million persons were in need of nursing care. The number of such people is expected to grow steadily from now on. In Japan full-scale aging society has already started and it brings a significant impact on the various aspects of whole society including individual people’s lives. Under these circumstances, foods are also required to cope with this change. Meals such as a

8 soft meal (easy to chew and easy to digest) are drawing an attention, because they are suitable for aging people who are unable to eat as much foods as they want due to their weakened eating and digesting capacity. Companies in food industry and pharmaceutical industry expect that food markets for aging people and physically weak persons will further expand in the future, as a result of the implementation of nursing care insurance system, which has been introduced to respond to the aging society.

(4) Outline of the food market for aging people

The aging people occasionally categorized as follow Naming General definition Senior Persons in an age group of 50 yrs. old or over who are healthy and active in general, and do not need any nursing. Silver Persons in an age group of 60 yrs. old or over called in general as aging people and/or the senile including persons in need of nursing care. Active senior Persons who are active and energetic in both of hobby and work (work after retirement) New senior Persons in an age group of 50 to 65 yrs. old who have new and different lifestyles from previous generations in this age group. Baby boomer The generation who was born in 1947-1949 immediately after the end of the generation war. Generally, people who have developed new values and lifestyles Source: Yano Research Institute Ltd

(5) Size of food market for aging Japanese With regard to the size of food market for aging people, many data are available from various institutions, associations and companies, who are engaged in the survey of this field. KRN found most relevant data on market size, as follows. The table I-5 market sizes by category in connection with foods for aging people. According to this data, the total market size for aging people is estimated to be about 1,600 billion yen in 2008. The table I-6 shows the market size for aging people by the type of foods in 2008. In addition, market size of food for aging people in the category “Food for Special Dietary Uses” (Excluding Food for Specified Health Uses) is estimated at 16 billion yen (Table I-11) where market size for hospital food is estimated at 982 billion yen (Table I-9), and market size for nursing home food is estimated at 89 billion yen (Table I-6)

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Table-I-5. Market size of foods for aging people by category 2008 2007 (Billion Yen) 2007/2008 (Billion Yen) (Assumption) Food market for aging people care facilities 1,387 1,402 101.0% Food market for sick people and people in need of nursing care 96 103 107.3% Food market for home delivery service 83 85 102.4% Total 1,566 1,590 101.5% Source: Nippon Marketing Report Co.

TableI-6. Market size of foods for aging people by type of food 2008 2007 (Million Yen) 2007/2008 (Million Yen) (Assumption) Soft meal (easy to chew and easy to digest) 3,200 4,200 131.30% Food for supplementing nutrients 3,100 3,700 119.40% Food for nursing home facilities 80,800 8,870 109.80% Source: Nippon Marketing Report Co.

TableI-7. Nursing Meal Supplier (unit: million JPY) 2009 Company 2007 2008 (forecast) Note Q.P.Co.Ltd 1,319 1,392 1,459 TOROMI food The Nisshin Oillio Group.,Co Ltd 925 1,112 1,231 Nursing Meal Forica Foods Co.,Ltd 910 930 949 Nursing Meal Maruhachi Mutamatsu.Inc 350 400 420 Nursing Meal YAYOI FOODS Co.,Ltd 441 443 446 Nursing Meal NICHIREI Co.,Ltd 327 334 341 Nursing Meal WAKODO.,Ltd 385 525 549 Nursing Meal Dairies Co.,Ltd 300 337 378 Nursing Meal Tokiwa Kanpo Pharmaceutical Co.,Ltd 271 323 383 Nursing Meal Hakujyuji Co.,Ltd 235 252 271 Nursing Meal Nitto Best Co.,Ltd 230 242 254 Nursing Meal Total 5,693 6,292 6,680

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TableI-8. Top 20 companies that supply foods to hospital, and care facilities Annual Turn over Daily supply No. of Head Company (unit: million (unit: 1,000 customers office JPY) meals) NISSIN HEALTHCARE FOOD SERVICE CO., 156,673 250.0 3,462 Tokyo LTD. AIM SERVICES CO., LTD. 84,093 136.7 1,025 Tokyo SHiDAX FOOD SERVICE 79,859 164.9 2,179 Tokyo CORPORATION Green House Co., Ltd. 73,267 147.0 1,396 Tokyo Seiyo Food-Compass Group,Inc. 72,300 786 Tokyo Uokuni Sohonsha Co.,Ltd. 60,834 68.7 2,364 Osaka Fujisangyo Co.,ltd. 57,356 58.0 1,426 Tokyo MEFOS LTD. 43,182 48.0 2,029 Tokyo Nikkyo Create,Ltd. 36,261 163.0 65 Tokyo Nikkokutrost 30,896 122.0 1,003 Tokyo Ichifuji Food Service Corp. 23,190 104.0 787 Osaka NIPPON GENERAL FOOD 20,925 32.0 400 Aichi Repast 17,380 39.1 617 Tokyo Fuji Sangyo Co.,LTD. 11,100 41.8 434 Tokyo Nisso 10,047 18.2 8 Hokkaido LEOC Kanto Co., Ltd. 10,000 244 Tokyo Nichibei-Cock 9,618 9.4 177 Osaka Bejoy 9,515 Ehime Nissin Food Products 9,000 3 Kagawa Tokyo Catering Co.,Ltd. 8,847 35.7 228 Tokyo

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TableI-9. Hospital Food Market (unit: billion JPY) Year Market size Out-sourcing Market Out-sourcing ratio 2004 978 329 33.6% 2005 981 337 34.4% 2006 980 346 35.3% 2007 982 349 35.6% 2008 (forecast) 982 351 35.7% 2009 (forecast) 982 352 35.8%

TableI-10. Main Food Category for Hospital (unit: billion JPY) Food 2007 2008 2009 (forecast) Ratio (%) Rice, Processed food 43.1 43.1 43.1 12.5 Wheat, Beans, Processed food 17.3 17.4 17.4 5.1 (noodles, Pasta, Bread) 7.6 7.6 7.6 2.2 Processed vegetable food 62.0 62.0 62.1 18.1 Processed fruit food 22.0 22.0 22.0 6.4 Processed livestock food 38.2 38.2 38.2 11.1 (ham, sausage) 9.8 9.8 9.8 2.9 Processed marine products food 39.9 39.9 39.9 11.6 Prepared food 89.0 89.1 89.1 25.9 Seasoning 11.2 11.2 11.2 3.3 Alcohol beverage 0.0 0.0 0.0 0.0 Soft drink 1.7 1.7 1.7 0.5 Others 1.8 1.8 1.8 5.6 Total 343.5 343.7 343.8 100.0

TableI-11. Market size of in the category “Food for Special Dietary Uses” (Excluding Food for Specified Health Uses) (unit: million JPY) Purpose 2006 2007 2008 2009 (forecast) Low sodium food 4,753 4,600 4,610 4,618 Low calorie food 2,305 2,330 2,350 2,366 High protein food 665 500 438 394 Removing allergen food 441 450 457 463 Assorted food to control foods for diabetes 2,854 3,300 3,610 3,881 Food for elderly 3,789 3,921 4,071 4,242 Total 14,807 15,101 15,536 15,965 Note: Excluding infant and baby food.

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TableI-12. Nursing Meal Market Market size Out-sourcing Market Out-sourcing Year (unit: billion JPY) (unit: billion JPY) ratio 2004 442.0 141.4 32.0% 2005 455.2 150.2 33.0% 2006 466.0 158.0 33.9% 2007 474.8 162.3 34.2% 2008 (forecast) 482.1 165.4 34.3% 2009 (forecast) 488.6 168.0 34.4%

II. Types of food for the aging people There is no clear definition and/or standard in "Food for the aging people". They refers generally to foods for those with weakened chewing and digestion due to the aging, and for physically disabled people, and also devised foods in some ways for those in need of nursing care, which are easy to cook, easy to eat and easy to clean up after meal, etc. In addition, health supplementary foods and functional foods can be included in foods for aging people in a broad sense, because many of those with weakened functions of the body with aging are using them. More specifically, these foods are in such forms as frozen foods and chilled foods, etc. in the market. They are cooked and softened foods and foods in paste or jelly for persons with weakened digestion and chewing. There are also many types of functional foods and health supplementary foods available in the market, which many aging people are using.

GraphII-1. Food consumption of aging households in total expenditure

30.0% 30.0% 25.9% 22.6% 25.0% 17.5% 20.0% 13.8% 15.0%

10.0%

5.0%

0.0% 1990 1994 1999 2005 2010

Taking the decreasing population and increasing aging people into account, the prospects for Japan’s food industry are outlined as follows: 13

*As the population diminishes, food consumption will gradually fall off. *As the aging progresses, food consumption will decrease as a whole. *Due to change in tastes, there will be a significant change in the type of foods consumed. *Reflecting changes in people’s lifestyles, there will be an increase in the availability of foods for aging people and those in need of nursing care, in addition to cooked foods, frozen foods and chilled foods. *As a result of dwindling population to produce agricultural products, the imports of foods will increase. *With the giant food conglomerates of Western countries entering into the Japanese market, keen competition will be accelerated between them and Japanese food companies.

Circumstances surrounding foods for aging people differ exceedingly depending on various factors including family composition and health condition. Aging people are roughly classified as follows: *Self-supporting aging person *Aging person in need of support *Aging person in need of nursing care *Hospitalized aging person In order to meet the requirements of various types of aging people and their lifestyles, demand for a wide variety of foods is expected to grow in the future. While the opportunity of eating out and the utilization of prepared meal are increasing, demand for the catering services of partly-processed foods, foods for those in need of nursing care, and foods for hospitalized patients will increase from now on.

Therefore, this report has grouped food for the aging people according to food currently available in the market as follows:

(1) Ordinary food products This refers food that has been prepared or to fit needs of the elderly with weakened chewing and digestion and need healthy supplementary food due to the aging such as:cut or chopped to small pieces, soft texture food, and low calorie food.

This group consisting of active aging people, on the other hand, has better functionability in swallowing and chewing than the Aging people, although it depends on individual health condition. Many people in this group are hoping that they can keep their current healthy conditions further for the future. They are also very conscious of lifestyle-related diseases, which may indicate that their

14 interest in the "health" as a whole should be high. The “Food for Specified Health Uses” system enforced by the Ministry of Health, Labour and Welfare corresponds to the lifestyle-related diseases. It is gaining very high attention in the market, thereby bringing about hot-selling products. The Ministry of Health, Labour and Welfare has also established a system of the food for physically weak persons, which also corresponds to the lifestyle-related diseases. Recently, companies, which are selling ordinary foods targeting to the Active aging people, have been increasing. The ordinary food targeting to the active aging people can be divided into two: One is the food aiming to prevent the lifestyle-related diseases and/or health-oriented food, and the other is the one with similar contents and tastes to those of foods targeting to younger consumers aged 20-40 yrs. old. Since there are many kinds of foods in the market for the young in terms of contents and tastes, there are people in the

NIGIRI- that looks like real active aging people who willingly take these foods. SUSHI but using mince fish paste Many people recur to the food that they ate well when they were young, as they grow old. Taking this tendency into consideration, there are companies that develop and sell special foods, sticking to some specific tastes and food materials.

Considering a core of consumers' potential needs of this group, the food market will range from relatively soft and "easy-to-bite" foods out of ordinary foods and/or "easy-to- eat" foods for aging people, to the Universal Design Food which is for those in just before the need for the liquid food. Also Bread that can be eaten by spoon considering a core of consumers' potential needs of the active aging people group, foods for the group could stretch out from ordinary foods to those for the lifestyle-related diseases. The ordinary foods for the group include those targeting to the people aged in the middle to aging people such as "low-salt and low-sugar foods", "foods with traditional taste" and "foods with special materials", etc. Both of the foods supposedly have a specific level of market size. Under the current situation, however, the market data mentioned above is not available. The one captured is only for the "Universal Design Food",

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Pasted of the “Food for Specified Health Uses” and foods for physically weak persons. Although the market demand should exist among the Aging people, the more similar products to ordinary foods are, the more difficult the products are to form the market. This is because people in this group do not get to purchase the products due to that many of them tend to have an unconscious gap between mental age and actual one. Concerning the market trend in future, the "Universal Design Food", the "Food for Specialized Health Uses" Vegetables Chopping Machine for preparing food that is easier to swallow and foods for physically weak persons, etc. will be expectedly growing because of these markets being easily recognizable for consumers. In relation to the other markets, a big point for the market growth will be linked to the increase of the target population. There are many active aging people unlike previous generations, and most of them feel resistance to get older. As the population increases, however, their consciousness may change. Companies, which make a continuous effort on educating the consumers in the promising market because of the biggest population, will lead the market in the future.

(2) Universal Design Food (Food for the people in need of nursing care) The food market in Japan has been developing and growing along with the increase of population, and it has been long since the market was in a matured stage. Given the coming society with a dwindling birthrate and an aging population, an attention paid on the market for the aging people has been greatly rising. Health conditions of the aging people vary from an excellent one to the one in need of nursing care. Accordingly, the needs for foods differ individually. Key points are "softness" and "easiness in eating and handling". There is the Universal Design Food among them for persons at a recovery period from illness or in need of nursing care who have difficulty in swallowing and chewing. The Universal Design Food which the Japan Care Food Conference established includes the four classifications of foods consisting of "Easy to bite", "Easy to crush by gums", "Easy to crush by tongue" and "Not necessary to bite", and "Food thickener". The coverage of persons targeted by the food ranges assumingly from those who have difficulty in eating and drinking ordinary foods to those in just before the need for liquid diet. "Chopped food in piece", food that is chopped in piece to eat easily, in the Universal Design Food is the nearest to ordinary foods. In this regard, the forms in many products of the Universal Design Food are different from ordinary foods so that consumers could easily recognize the usage intention of the former. However, nurses and aging people could generally feel resistance in using "nursing foods" and/or "foods for aging people". Therefore they tend not to purchase chopped foods, foods in paste, etc. which they can manage to make by themselves at home. The market size of the Universal

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Design Food is estimated to be about six billion yen (in an ex-factory price base). It has not widely expanded yet because of several barriers for the growth including still low awareness due to short market-history, and a fact that consumers can manage to cook by themselves at home to some extent. However, the necessity of the foods concerned is rising as aging people population is increasing year by year, and accordingly the consumer awareness is gradually spreading. Currently many people manage to cut and chop food using a mixer by themselves at home. The needs for the Universal Design Food will expectedly increase further because people who cannot engage only in nursing, will be increased.

Division 1.Easy to bite Division 2.Easy to Division 3: Easy to Division 4: Not “Boiled red fish and crush by gums “Cream crush by tongue necessary to bite “Jelly root vegetable” stew of turnip potato” “Softened or egg-tofus” drink apple flavor” Kewpie Meiji Dairies House Foods Kewpie Corporation

Table II-2. Classification Table of Universal Design Food 3. Easy to 4. Not Classification 1. Easy to 2. Easy to crush by necessary to Food thickener bite crush by gums tongue bite Not easy to Cannot eat a Standard of eat a hard Not easy to eat Can eat solid one power to bite one and a a stiff one and sliced and easily, even if big one a bit a big one soft one small Not easy at Standard of Not easy to times to Not easy to power to Can swallow swallow swallow swallow swallow normally depending on water and water and tea Product making food tea drinks and food Rice Soft rice thickened (or jelly) Rice ~ Soft rice ~Rice gruel Rice gruel Rice in paste and easy to swallow. Boiled Available also are Boiled crumbed-chi products which turn Boiled pork hamburger cken with Strained into thickened drinks Main chicken and/or food by Standar steak thick starch dish sauce dissolving in water d of etc. food Thick-baked Rolling egg Scrambled Soft teacup form egg with stock egg egg Side Boiled Boiled carrot Boiled carrot Strained dish carrot (mouth size) in crush carrot Boiled apple in Boiled apple Dessert Boiled apple syrup (mouth crushed in Soft apple in syrup size ) syrup jelly

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Source: Japanese Care Food Conference

Users of the Universal Design Food are not only aging people, but also persons who have a temporary inconvenience to take meal due to the dental treatment, and persons who a difficulty to take meal due to the mouth lesions as well. The name of the Universal Design Food indicates clearly this point. However, a majority of users are aging people, meaning that this is a food category certainly for aging people. The “easy-to-bite” food is the one for persons with a difficulty in chewing. The main users are those who have weakened teeth as aging, those with the brain injury, and patients of the terminal cancer, etc. There are chopped food and blended food: the former is the one cut into pieces and the latter is the one in paste made in the mixer. The latter one is closer to ordinary foods in the comparison. On the other hand, the “easy-to-swallow” food is the one for persons with a difficulty in swallowing. The main users are those with the brain injury, patients of the terminal cancer, and patients of the nerve intractable disease, etc. There are also food thickener, nutrition-assisting food in a dessert type and a moisture replenishment jelly etc. Their usages are respectively for "making meal thickened and easy to swallow", "making food easy to take in a dessert form" and "making food in jelly easy to replenish moisture”. The market size of the Universal Design Food in 2008 is estimated at 6,282 million yen (in an ex-factory price base). This consisted of 2,197 million yen of foods for those with a difficulty in swallowing (thickened-related food) and 4,086 million yen of foods for those with a difficulty in chewing. (Refer to the Table II-3) The food market for those with a difficulty in swallowing have been expanding by 20 to 30% annually and the growth pace is continuing. Since home treatment is on a recent trend, direct

18 Food thickener “Toromi fine” Kewpie order from home patients has been increasing. The expansion of food thickener and food in dessert type is visibly standing out, and moisture replenishment jelly is expanding as well constantly. On the other hand, the market of foods for those with a difficulty in chewing, which had been slow down in its growth, has turned into an increasing trend. However, the growth in the retail channel is not high due to the low awareness of consumers. Chopped foods for hospitals and other nursing facilities are not on the upward trend either, because of problems in pricing, etc. In terms of blended foods, the growth rate has stayed around 5 to 7% annually. The market of the food has expectedly a big potential while its awareness is still low.

Strangeness of thickness + ++ + + + + + + + mage of thickness French dressing Cutlet source Tomato ketchup Volume of usage

There are an increasing number of aging people who are willing to purchase the foods that are not targeting necessarily for them. The fact is widely well- known that there were many elderly people who purchased baby foods when foods like the Universal Design Food were not available in the market. Like this case, there should be many people who have difficulty in swallowing

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“Fluffy rice porridge” KAMEDA SEIKA and/or chewing functions, and try to locate such foods as suitable for their level of the function. They frequently buy rice gruel in particular. The current elderly people tend to like conventional Japanese foods since their eating habits are not westernized unlike the young. Those who feel a bit difficulty in eating rice as a staple food likely buy rice gruel as a substitution. Rice gruel made from healthy materials such as sprouted brown rice, barleys, and five grains, etc. is selling in the market from various companies and getting popularity. Cooked foods are also popular because you can save time for cooking. It is said that cooking motivation declines when people become middle-aged or above. When being aged, you find it difficult to cook every day physically as well as from a viewpoint of motivation. Therefore the needs for cooked foods have presumably risen.

Table II-3. Production of universal design food (unit: million Yen) 2004 2005 2006 2007 2008 1.Easy to bite 60 79 151 341 556 2.Easy to crush by gums 337 402 404 484 532 Division 3.Easy to crush by tongue 425 689 1,037 1,507 1,849 4.Not necessary to bite 660 827 895 1,055 1,149 Thicken food 780 1,033 1,490 1,920 2,197 Total 2,262 3,030 3,977 5,307 6,282 Dried 784 1,026 1,483 1,914 2,192 Type Frozen 79 343 845 1,395 1,849 Ambient temperature 1,339 1,661 1,648 1,998 2,241 Total 2,262 3,030 3,976 5,307 6,282 Distribution For retail 626 790 857 1,081 1,222 channels For care facilities, hospital, etc. 1,636 2,240 3,119 4,226 5,060 Total 2,262 3,030 3,976 5,307 6,282 Source: Japan Care Food Conference. The amount is based on shipment.

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(3) Food for Special Dietary Uses 1. What is the “Food for Special Dietary Uses "? The " Food for Special Dietary Uses " refers to the one that obtained the permission of the Minister of Health, Labour and Welfare to label its effects for sales suitable for special dietary uses for babies, for infants, for pregnant women and nursing mothers, and for physically weak people, etc. It is pursuant to the Article 26 of the Health Promotion Act. There are two types of foods in the "Food for Special Dietary Uses". One is "single food" such as low-calorie food and low sodium food, etc. for physically weak people that is adjusted with only one specific element. The other one is "packed food" such as food for the diabetes that combines and adjusts two or more elements. The " Food for Special Dietary Uses " also includes powdered milk for pregnant women and nursing mothers and for lactating women, powdered milk infant formula for babies, foods for persons with difficulty in swallowing and the Food for Specified Health Uses.

Table II-1. Classification Chart of “Food for Special Dietary Uses "

“Food for Food for physically weak persons Special Food for Low-protein food Dietary Uses” physically weak Allergen-removed food persons Lactose-free diet Total nutrition foods Individual Examination Type

Powdered milk for pregnant women, nursing mothers and lactating women

Formulated powdered milk for infant

Foods for persons with difficulty in masticating or swallowing

Foods for Specified Health Uses

2. Transition of the labeling system related to Food Special Dietary Uses The Food for Special Dietary Uses System was established in the Article 13 of the Food Sanitation Act enacted in 1947, indicating that "a person who tries to label special dietary uses

21 for babies, and physically weak persons, etc. in terms of foods and additives for sales shall obtain the permission from the Minister of Health, Labour and Welfare ". Along with the economic growth, people's diet situation had been improving. On the other hand, the nutrient state that was biased to excessive energy and excessive salinity, etc. became gradually obvious. Given the situation, the labeling permission standard for use of pregnant women and nursing mothers, and for the low sodium and the low sodium was enacted in 1963 and in 1972 respectively. In 1973, the labeling permission standard was enacted in terms of foods for physically weak persons such as low sodium foods, low calorie foods, and low protein foods, etc. “Food for Specified Health Uses” that is able to label the health Calorie Navi 320 series ”Hamburg with Japanese function of elements containing in the food was added as one seasoning set” Nichirei classification of “Food for Special Dietary Uses” in 1991. “The Nutrition Labeling Standard” System was established in 1996, in which a company is able to label nutritional content in food arbitrarily according to the standard that the Minister of Health, Labour and Welfare provided. This system allows labeling nutrition highlights such as "Replenish-able", "An appropriate intake can be done", etc. Following it, “The Enriched Food System” where the government had given the permission for the labeling until then was abolished, and it has been changed into a company's self-certification system. The environment surrounding “The Special Dietary Uses Food System” has been greatly changing: for instance, the noticeable progress of the medical science and the nutrition and the settlement of the nutrition labeling system as well as the advancement of the aging society and the increase of the medical expense along with the increase of the patients of lifestyle-related diseases. Given the Yogurt that tunes up situation, The Special Dietary Uses Food System was newly intestine condition “Sofuru” Honsha modified on April 1, 2009 along with the revision of the Ordinance for Enforcement of the Health Promotion Act. The center of the modification covers the nutrition management for home patients. Above 2 pictures show examples of " Food for Special Dietary Uses "

3. Food for Specified Health Uses The "Food for Specified Health Uses" is a system enacted in 1991, referring to foods that passed the examination by the Japanese Government based on experimental data and were authorized to label their effect-efficacy by the Japanese Government. The effect-efficacy

22 includes "Lower blood pressure", and "Lower the level of sugar in the blood", etc. for examples. They are foods of which functions are guaranteed by the Japanese Government, while being not as effective as pharmaceuticals. To obtain the authorization is costly and time consuming due to the severely examination. A present supervisory authority is the Consumer Affairs Agency.

4. The application procedures of the "Food for Specified Health Uses" (1)Submission of the permission application and the examination application [1]The permission application shall be submitted to the public health center covering the address of main office. (Number of copies to be submitted: 1 original and 2 duplicates) [2]The prefectural governor, etc. who has received the permission application shall forward it to the Minister of Health, Labour and Welfare after checking the completeness of the application and admitting the suitability of food. [3]After submitting the permission application, the examination application with a copy attached of the permission application including the attached materials(hereafter, the same) shall be sent or brought directly to Health Emergency Office for Newly developed food, Standard Examination Section, Safety Division, Pharmaceutical and Food Safety Bureau of the Ministry of Health, Labour and Welfare. (Number of copies to be submitted: 1 original and 2 duplicates) ※The application for approval and the examination application are submitted directly to the Ministry of Health, Labour and Welfare in case of the application for approval. (2)Examination inspection request of product sample [1]The applicant shall request the examination and inspection for product sample with attachment of a copy of the examination inspection application to the National Institute of Health and Nutrition (hereafter, referred to "Institute") or registered examination bodies. [2]The applicant shall submit the original of the inspection report issued by the "Institute" or registered examination body to the manager of the Health Emergency Office for Newly developed food ※Refer to the detail of the application procedure and the format of the application, the document number 0201002, issued by the Safety Division dated on Feb. 1, 2005.

5. Market situation of the "Food for Specified Health Uses" 1) Market of the "Food for Specified Health Uses" As described earlier, the "Food for Specified Health Uses" is a system enacted in 1991, referring to foods that passed the examination by the Japanese Government based on experimental data, and were authorized to label their effect-efficacy by the Japanese Government. According to the Japan Health Food & Nutrition Food Association, the market of the “Food for Specified Dietary Use” in 2007 accounted for 679.8 billion yen with a 7.3%

23 increase compared to 2005. The market has been expanding rapidly since 1997, although the pace of the growth was slower in recent years. The number of foods with the labeling certification has been steadily increasing up to 775 products in 2007 with a 32.6% growth compared to 2005. Looking at the total market of the "Food for Specified Health Uses” by usage, the products for intestinal disorders have the biggest share, accounting for 51.1% with 347.3 billion yen sales. The growth rate of this category has been slow down with the sales value going down by 6.3% as well as the composition rate falling off by a 7.7 point, compared to fiscal year 2005. The rapid growth categories, on the other hand, are products for "neutral fat", “body fat”, "blood pressure" and "cholesterol". The sales values in 2007 together with the growth rates compared to fiscal year 2005 are as follows for each category: 160.6 billion yen with an 82.4% increase for "neutral fat" and "body fat" related products, 25.05 billion with a 69.6% increase for "blood pressure" related products and 23.03 billion with a 1.0% increase for "cholesterol" related products. The market of "neutral fat" and "body fat" related products would be seemingly growing due to cooking oil's being continuously on an upward trend and a big-hit soft-drink brand currently on the market.

Table II-4. Market size of main ingredients and main purposes of maintaining health (unit: billion JPY) 1997 1999 2001 2003 2005 2007 Oligosaccharide 10.4 9.1 5.6 6.7 5.9 7.2 Atractylodes Lactobacilli 97.9 186.3 317.1 342.1 351.7 324.9 lancea Dietary fiber 11.9 11.6 12.8 14.2 13.0 15.3 rhizome Subtotal 120.2 207.0 335.5 362.9 370.6 347.4 Cholesterol 0.0 0.4 2.8 11.4 22.8 23.0 Blood pressure 1.4 7.2 10.0 8.8 14.8 25.1 Bone, Mineral 9.2 4.5 11.4 12.0 14.3 7.3 Tooth 0.0 0.4 18.7 80.5 96.1 95.4 Blood sugar level 0.7 0.5 18.4 27.7 23.3 21.1 Internal fat, Body fat 0.0 7.0 15.2 63.5 88.1 160.6 Total 131.4 226.9 412.1 566.9 629.9 679.8 Source: Japan Health Food & Nutrition Food Association

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Table II-5. Food for Specified Health Uses/ Sales situation of main manufacturers and their products (Million Yen) 2009 Product 2007 2008 (forecast) Seller YAKULT HONSHA YAKULT joie, Bifiene 76,500 76,903 77,267 CO.,LTD. xylitol gum (cool herb)(eucalyptus mint) 57,700 59,216 60,461 LOTTE Co., Ltd., Meiji Bulgarian yogurt 31,982 32,246 32,459 Meiji Dairies Corporation healthya ryokutya 17,000 15,926 15,122 Kao Corporation bansoreicha 8,379 8,169 8,005 YAKULT HONSHA CO.,LTD. ・ CADBURY JAPAN white grape mint 8,010 8,253 8,453 LIMITED MORINAGA MILK bifidus plain yogurt 7,300 7,419 7,516 INDUSTRY CO., LTD. POsCAM bottle (clear dry)(flesh rime) 6,020 6,409 6,740 EZAKI GLICO CO.,LTD. OTSUKA fibemini 5,100 4,965 4,859 PHARMACEUTICAL CO.,LTD. lactic acid ameel S120 4,216 4,017 3,865 CALPIS Co.,Ltd. hone genki 4,099 4,192 4,268 Mizkan Group Corporation xylitol tablet bottle(orange) 4,016 4,303 4,550 LOTTE Co., Ltd., black oolong tea 4,000 4,343 4,641 Suntory Holdings Limited econa mayonnaise type 3,600 3,662 3,712 Kao Corporation Taisho Pharmaceutical cholescare 3,000 3,360 3,683 Co.,Ltd. The Nisshin OilliO Healthy Resetta 3,000 3,000 3,000 Group,Ltd. Takanashi yogurt Onakae G Takanashi Milk products G! 100g 2,664 2,748 2,818 co.ltd. econa (cholesterol) 2,528 2,494 2,467 Kao Corporation PILKUL 2,310 2,312 2,314 NISSIN YORK Co.,ltd.

2) Distribution channel of the "Food for Specified Health Uses" In the market by distribution channels in fiscal year 2007, the share of supermarkets and department stores are the biggest, followed by company-owned channels like Yakult's, and then convenience store channel, accounting for 44.6%, 34.8% and 16.8% respectively. They are all food-related store-sales channels. The mail order channel has only 0.9% share in value in 2007. However, 50% or more of 152 brands, of which distribution channels are identified, sell through the mail order route. The aforementioned two points indicate how big the sales volume of the products cited here are through the retail store, while many companies are employing the mail 25 order sales. The retail store has capability of big sales amount. The mail order sales, on the other hand, can communicate what a company would like to focus and convey, which is a strong point of the channel. In addition, our survey found that 30% of the total companies are co-users of the store sales and the mail order. Recently, the mail order channel in the health supplementary food industry of the supplement etc. has been rapidly expanding.

Table II-6. The market of Food for Specified Health Uses by distribution route (unit: billion JPY) 2001 2003 2005 2007 Super market, Department store 194.8 228.5 266.3 288.9 44.6% Home delivery service 127.1 195.0 206.9 225.7 34.8% Convenience store 60.1 88.4 92.5 108.8 16.8% Drug Store 15.6 17.0 19.6 18.4 2.8% Mail order 4.0 4.5 4.3 6.1 0.9% Others 10.5 33.5 40.3 31.9 4.9% Total 401.6 533.4 589.6 647.9 Source: Japan Health Food & Nutrition Food Association

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Graph II-2. The market of foods for specified health use by distribution route (unit: billion JPY)

Mail order 0.9% Drug Store 2.7% Others 4.7%

Convenience store 16.0%

Super market, Department store 42.5%

Home delivery service 33.2%

3) Cost for obtaining the certification of the “Food for Specified Health Uses” Based on the hearing from the health supplementary food manufacturers, the total cost for obtaining the certification of the “Food for Specified Health Uses” is as below, which includes preclinical trial, human clinical trial, tests for safety, effectiveness and toxicity, and labor cost for application, etc.

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Table II-7. Estimated Cost for Obtaining the Certification of the “Food for Specified Health Uses” Genre Cost and period 100 ~ 500 million yen ※ testing period ranges one New genre (new material, new month to one year or more (The lifestyle-related health usage, and new food form) diseases related takes longer). Existing genre (in case of many 30 million -200 million yen ※ more or less 10 brands already in the market). million yen in safety trial.

4) New system of the "Food for Specified Health Uses" The first version of the system of the "Food for Specified Health Uses", which had been in place since 1991, was reviewed in 2005 with the following reasons: the necessity enhanced for health education due to the increase of the lifestyle-related diseases, the existent of unclear description about the system for consumers, possible confusion given to consumers due to the increase of illegal, exaggerated advertisements etc. The review was made in a manner to expand the said system. The main revision in four points is as follows: a. Establishment (Standard Criterion type) of the "Food for Specified Health Uses" This covers ingredients contained in a product applied for the "Food for Specified Health Uses". There are certain ingredients, which have many cases permitted in the past and plenty of scientific bases so that they can be permitted without any individual screening in the Pharmaceutical Affairs and Food Sanitation Council. They are permitted with only a screening of the standard criteria newly established. This can make the permission processes faster. A product fulfilling the standard criteria is regarded as the “Food for Specified Health Uses” (Standard Criterion type). Following three points are the standard criteria i. An ingredient, which has been contained already as health usage in more than 100 cases in permission, ii. An ingredient, which fulfills the above and of which first permission was given more than 6 years (no health related accident took place for the past six years), and iii. An ingredient, which is of heath usage with more than two companies already given the permission to use for the "Food for Specified Health Uses". As a result, there are nine ingredients set as the standard criteria, which are " Indigestible dextrin", "Poridekistorors", "Guar Gum Degradation", "Soybean-oligosaccharide", "Fructo-oligosaccharide", "Fruit-Milk oligosaccharide", "Galacto-oligosaccharide", "Xylo-oligosaccharide", and "Isomaruto-oligosaccharide" b. Establishment of the conditional system of the “Food for Specified Health Uses” This covers a product applying for the "Food for Specified Health Uses", which, however, does not 28 reach at the level of scientific basis required for the permission, but has certain effectiveness confirmed. It is permitted with a condition to attach the label indicating “limited scientific basis”. It has to label the permission certificate of the "Conditional Food for Specified Health Uses" which was newly established. c. Permission of labeling of the risk-reduction of disease The labeling of risk reduction has been permitted. The labeling permission can be given only to a product with specific ingredients. They have to be verified and established in medical and nutritious studies as the ones with effectiveness for the risk-reduction of disease. There are two cases recognized and established widely as the risk-reduction of disease under the present scientific knowledge: one is "Relation between young woman's calcium ingestion and the risk of future osteoporosis" and the other is "Relation between woman’s foliate intake and the risk of delivery of a baby with the closed nerve disorder. d. Obligating of labeling of "Critical is the dietary balance of eating habits based on staple food, main dish, and side dish ". The above labeling is obligated for foods with health claims (the “Food for Specified Health Uses” and the Food with Nutrient Function Claims”) in order to correct consumer’s tendency of excessive expectation to "Health supplementary food", and to educate and facilitate balanced eating habits

6. Market trend of the therapeutic foods Therapeutic foods are the foods for helping patients’ recovery from illness such as diabetes, renal disease etc.. In this category foods there are many foods adjusting or limiting ingredients such as “Protein”, “Phosphorus”, “Potassium”, “Salinity”, and “Calcium”, etc.

Among the therapeutic foods for aging people, the foods with a high percentage of elderly users of the total are those for the renal patient and foods for the diabetes. First, in terms of foods for the renal patient, "Nissin Therapeutic diet for kidney disease “PLC series” Forica Foods Science Co., Ltd.", "Forica Foods Corporation", and "Kissei Pharmaceutical Co., Ltd.", etc. are leading companies, which are also major companies in nursing meals. The products range widely from rice as stable food, side dishes and seasoning to cakes. Well-known are “PLC series” of Forica Foods, and “YUME series” of Kissei Pharmaceutical, etc. The distribution channel of hospitals and nursing facilities is a major one, which is the same as the case for nursing meals. The demand

29 directly from homes is also expanding. Capturing the trend, many companies are trying to develop the mail order sales. The sales size, however, is still small. In relation to the foods for the diabetic, “Nichirei Corporation", "Table Mark Co., Ltd.", and "Nissin Science Co., Ltd." etc. are all selling “cooked foods” in retort types. A main distribution channel is the mail order, where promotion activities take place through catalog and internet, etc.

7. Situation of the metabolic syndrome Therapeutic diet for kidney 1) What is the metabolic syndrome? disease “Yume gohan” Kissei Pharmaceutical In 1988, Dr. Gerald M. Reaven paid attention to diseases caused by some specific lifestyles. He discovered that the lifestyles are closely connected to a cause of pathogenesis with the insulin resistance as a cardinal factor. Since then, a lifestyle-related disease, which had been considered as an individual one, has been regarded as a compound with the visceral fat. This is now a main stream as the theory.

2) Diagnostic criteria for the metabolic syndrome A diagnostic criterion for the metabolic syndrome refers to 85 cm or more of the abdominal circumference for men and 90cm or more for woman in Japan. WHO (The World Health Organization) in 1999 announced the diagnostic criteria of the metabolic syndrome (the visceral fat syndrome) at first, followed by NCEP (National Cholesterol Education Program as USA's cholesterol education program ) in 2001 in The United States. In Japan, the eight societies have jointly established the criteria for the "Metabolic syndrome", including "Japan Atherosclerosis Society", "Japan Diabetes Society", "Japan Society of the Study of Obesity", "Japanese Society of Hypertension", "Japanese Circulation Society", "Japanese Society of Nephrology", " Japanese Society of Thrombosis and Hemostasis", and "Japanese Society of Internal Medicine". The diagnostic criterion for the waist (abdominal circumference) is almost the same as that of United States. In the obesity, there are two types: the obesity in the lower half of body (hypodermic fat type) so-called as "Pear type", and the obesity in the upper-body (visceral fat type) so-called as "Apple type". There are more women in the "Pear type" with fat around the abdomen, the thigh, and the hips. There are more men, on the other hand, in the Apple type", with fat particularly around the stomach.

3) Number of patients of the metabolic syndromes A recent survey of the Ministry of Health shows that those aged 40 yrs. old or over who

30 are in a strong doubt and a "reserve" group of the metabolic syndrome account for more than 40 % for both men and women of the total population of the age group. If limiting to those aged 40-74 years old, one out of two for men and one out of five for women are in a strong doubt or a "reserve" group of the metabolic syndrome. The Ministry of Health, Labour and Welfare estimates about those in a strong doubt and a "reserve" group by age generation. According to the estimation, those in a strong doubt amount to 9.4 million people, and those in a “reserve” to 10.2 million, totaling in 19.6 million.

4) Market related to the metabolic syndrome and the outlook Taking into consideration the metabolic syndrome as the lifestyle-related diseases caused by the visceral fat, the main markets are of products that can serve for blood pressure control, cholesterol reduction, decrease of the neutral fat, and obesity measure. Improvement of lifestyle including eating habits and physical exercises, etc. can prevent the metabolic syndrome. Accordingly, in the areas of foods and nutrition, health supplementary foods, in particular, the “Food for Specified Health Uses” and the "Food for Special Dietary Uses" are major ones in the "Preventive market". The market of the "Food for Specified Health Uses market" will be surely expanding in the markets of foods for improvement and remedy. Especially, the market for the neutral fat control could be of growth for the future. The “Food for Specified Health Uses” should be especially hi-lighted as the foods for a metabolic syndrome measure. The market of the “Food for Specified Health Uses” has been on an expanding trend as afore-mentioned. The background of the expansion is firstly because the foods meet to the government policy to control the rise of the medical expense. The government wants the people to make an effort to stay healthy before getting sick and receiving medical treatment. Secondly, health consciousness of consumers has developed, and they come to select healthier products in the choice of diet. Among the "Food for Specified Health Uses", the ones related to the metabolic syndrome are as follows

Table II-9. Foods related to the metabolic syndrome among the "Food for Specified Health Uses" Foods for those with high cholesterol Foods for those with high cholesterol, which are also good for stomach and intestinal disorders Foods for those with high blood pressure Foods for those who begin to be anxious about blood sugar level Foods for those who are anxious about neutral fat in blood and body fat. Foods for those who are anxious about neutral fat in blood and body fat and those with high cholesterol. Source: Thorough analysis of food market for the senior

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The breakdown of products related to the metabolic syndrome is as follows.

Table II-10. Market size of metabolic syndrome related foods (unit: billion JPY) 1997 1999 2001 2003 2005 2007 Oligosaccharide 10.4 9.1 5.6 6.7 5.9 7.2 Atractylodes Lactobacilli 97.9 186.3 317.1 342.1 351.7 324.9 lancea rhizome Dietary fiber 11.9 11.6 12.8 14.2 13.0 15.3 Subtotal 120.2 207.0 335.5 362.9 370.6 347.4 Cholesterol 0.0 0.4 2.8 11.4 22.8 23.0 Blood pressure 1.4 7.2 10.0 8.8 14.8 25.1 Bone, Mineral 9.2 4.5 11.4 12.0 14.3 7.3 Tooth 0.0 0.4 18.7 80.5 96.1 95.4 Blood sugar level 0.7 0.5 18.4 27.7 23.3 21.1 Internal fat, Body fat 0.0 7.0 15.2 63.5 88.1 160.6 Total 131.4 226.9 412.1 566.9 629.9 679.8 Source: Japan Health Food & Nutrition Food Association

5) Product for the cholesterol control The cholesterol control product is expected to suppress the rise of cholesterol for persons with high cholesterol, and is useful for the risk reduction of the lifestyle-related

Margarine controlling the absorption of cholesterol in the blood “Rama pro active” Unilever Oil controlling the absorption of cholesterol in the blood “Kenko Sarara” Ajinomoto diseases such as the cardiac infarction and the cerebral infarctions, etc. The ingredients included are "Soybean protein", "Chitosan", "Low molecular sodium alginate ", "C-fraction soy protein hydrolysate with bound phospholipids (CSPHP)", and "Phytosterol ester", etc. as main ones. The market sizes increased by almost eight times as high as that of fiscal year 2001, and in particular, "Plant sterol" is a leading one in this category. Such companies as "Unilever Co." and "Ajinomoto Co. Inc.", etc. have respective product line-ups matched to the market need for low calorie products. Their products are "Rama Proactive" with Unilever Co.,

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“Healthy Sarara”, and "Pure Select Saralia" with Ajinomoto.

Mayonnaise controlling the absorption of cholesterol in the blood “Sararia” Ajinomoto

Graph II-3.Market size of foods for controling cholesterol (based on manufacturer's suggested retail price)

(unit: million JPY) 25,000 22,800 23,000

20,000

15,000

11,360

10,000

5,000 2,790

30 430 0 1997 1999 2001 2003 2005 2007

Source: Japan Health Food & Nutrition Food Association

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Following is the market breakdown of foods related to the metabolic syndrome under the “Food for Specified Health Uses” in 2007. The products corresponding to the neutral fat and the body fat are the biggest with 160.6 billion yen sales, followed by the products for the blood pressure control with 25 billion yen, and the products related to the cholesterol with 23 billion yen. The sales of products for the cholesterol control have rapidly increased by about eight times in 2007 as big as that in 2001, while the market size of products for the blood sugar control has leveled off. The market size of foods for the neutral fat and the body fat control has expanded by 11 times in 2007 compared to that of 2001. The above shows that following brands have matched to the consumers' needs who are concerned about the neutral fat and the body fat: those brands are "Econa"(diacylglycerol) and "Healthya" (tea catechin as a major ingredient) of Kao, “Healthy Resseta" (medium chain fatty acid) of Nisshin Oillio, etc. “The Black Oolong” Tea of Suntory (qoolontea polymerization polyphenol) has been newly in the Oil preventing from body fat “Healthy Resetta” market in 2006 and shown good sales. In the “Food for Specified Nissin oillio Health Uses” related to the metabolic syndrome, products for the control of cholesterol, neutral fat and body fat would be expectedly expanding in future.

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Green tea controlling neutral fat “Healthya” Kao

Table II-11. Market size of food for Specified Health Uses related Metabolic syndrome (based on manufacturer's suggested retail price) (unit: billion JPY) 1997 1999 2001 2003 2005 2007 Cholesterol 0.0 0.4 2.8 11.4 22.8 23.0 Blood pressure 1.4 7.2 10.0 8.8 14.8 25.1 Glucose 0.7 0.5 18.4 27.7 23.3 21.1 Internal fat, body fat 0.0 7.0 15.2 63.5 88.1 160.6 Total 2.1 15.1 46.5 111.5 148.9 229.7 Source: Japan Health Food & Nutrition Food Association

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Graph II-4. Market size of food for specified health use related Metabolic syndrome (based on manufacturer's suggested retail price)

(billion JPY) 250.0

200.0

150.0

100.0

50.0

0.0 1997 1999 2001 2003 2005 2007

Cholesterol Blood pressure Glucose Internal fat, body fat Total

6) Products for the neutral fat control Products for the neutral fat control, which are for those who are anxious about the neutral fat in blood and the body fat, are expected to suppress the accumulation in body of fat by meal, and are useful for the risk reduction caused by the lifestyle-related diseases such as the obesity, the hyperlipemia, and the arteriosclerosis. The main ingredients contained in those products are "Diacylglycerol", "Medium chain fatty acid", "Tea catechin", "Oolong tea polymerization polyphenol" , and "EPA,DHA", etc. Soybean protein that decreases neutral fat The market of products for the neutral fat control is “Power of soybean protein” Kobayashi Pharmaceutical expected, in particular, to grow. Kao put ”Econa Cooking Oil" on the market in 1999, which was a trigger for the growth of this category, followed by "Econa Healthy & Healthy Cooking Oil" as the second thrust by Kao in 2001. (The sales are now suspended due to a doubt of the carcinogenic.) Following Kao, Nisshin Oillio launched "Healthy Resseta" with an ingredient of the medium chain fatty acid. This entry made the market expanded quickly in 2003. In addition, Kao newly launched "Healthya" with "Tea catechin" as an ingredient, and has been leading the fat-absorption control beverage market, in tandem with Suntory, which has entered into the market in 2005.

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The "Healthya" is the first beverage of the neutral fat control with the antioxidative effect of “Tea catechin” reducing cholesterol. The "Healthya", containing “Tea catechin” 540mg per 350ml, has been targeting to consumers who are anxious about the body fat, and growing well with the sales from 20 billion yen in 2003 to 40 billion yen in 2005. Then, Suntory entered this market with the "Black Oolong Tea" containing "Oolong tea polymerization polyphenol" as an ingredient. The "Oolong tea polymerization polyphenol" is recognized as suppressing the neutral fat in blood after meal. The "Black oolong tea" contains 70mg of the ingredient for each 350ml. The main target consumers for both Suntory and Kao are those in the metabolic syndrome and its preliminary group. At the same time, big successes of the two brands could be Medicine controlling the rise of neutral fat “Naishitoru 85” attributed to a strategy to appeal to and pull in young women as Kobayashi Pharmaceutical well, for their dieting. Women aged 20-30's showed a strong interest in those products and tried them first, resulting in the acceptance by women and men in the middle to aging consumers. The above implies that, in the launch of a product for the metabolic syndrome, it is necessary to run such advertizing and promotion campaign as young women aged 20's to 30' can accept in order to make a big success, even though the main targets would be men in the middle aged or above.

The hyperlipemia refers to a blood condition where the lipid (serum lipid) melts a lot into blood, and causes the arteriosclerosis, resulting possibly in the mental illness and the apoplexy, etc. It is regarded as one of the three silent killers because of no subjective-symptom taking place. The serum lipid includes “cholesterol”, “neutral fat”, “phospholipid”, and “non-esterified fatty acid”, etc., and the accumulation of these ingredients in the blood vessel causes the mental illness and the apoplexy. The ingredients good for the hyperlipemia are Beverage controlling cholesterol in the "Lecithin", "Chitosan", "Diacylglycerol", "Glycinin", "Globin blood “Cholestemine” Yakult Honsha protein degradation", "Tea catechin", "Low molecular sodium alginate", "C-fraction soy protein hydrolysate with bound phospholipids", and the “β carotene”, etc. There are products in the “Food for Specified Health Uses” which are good for the hyperlipemia. With such products, the labeling “for those with high cholesterol" is permitted, and 80 brands are now certified with it. The availability of labeling the functionality is critical. The market is expected to expand, centering around the "Food for Specified Health Uses" such as "Cholestimine" of Taisho Pharmaceutical

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Co., Ltd. and "Choleste Block" of Kyowa Hakko.

7) Prevention of the obesity There are so many products available in the market for food for the obesity, not only in the healthy food category, but also in the ordinary food category. A fact has become well known that the obesity causes various diseases such as the arteriosclerosis and the disease, etc. This is partly because people's consciousness toward health and self-medication is growing up due to the progress of the aging society and the increasing burden of medical expenses. Ingredients good for the obesity are "Garcinia cambogia", "Chitin chitosan”, "Gimnema sylvesta", "Amino acid", L-Carnitine (extraction from cow and mutton), "Capsaicin" and chrome, etc.

8) Products for the high blood pressure control Arum root for being mixed with Products for the high blood pressure control, which are for those meal to suppress calorie “Tsubu with high blood pressure, suppress factors for enhancing blood Tsubu Konnyaku” ORIHIRO pressure, and are good for the risk reduction of the lifestyle-related diseases such as high blood pressure and the apoplexy, etc. High blood pressure has become well known as one of the three silent killers, causing the mental illness and the apoplexy, etc. Accordingly, the market of foods for the high blood pressure syndrome has been activated. Ingredients effective for high blood pressure include various ones such as "Peptide", "DHA" of "Eucommia leaf glycoside ", "Soybean protein", "Bacillus natto", "Barm", "Chitin chitosan" "Catechin", "Potassium", and "Vitamin E", etc. The expansion of "Eucommia leaf glycoside" is contributing to the market growth of this category.

9) Products for the blood sugar level control Products for the blood sugar level control, which are suitable for those who begin to be anxious about the blood sugar level, softens the absorption of sugar, and are effective for the risk reduction of lifestyle-related diseases such as the diabetes, etc. The diabetes is one of the three silent killers, causing the arteriosclerosis, and leading to the mental illness and the apoplexy, etc. It is said that the number of the diabetic patient in Soup that lowers the level of sugar in the 40-year-old or more reaches to one to ten and the blood “Jinwari kaoru attaka soup” NIPPON FLOUR MILLS number of the diabetic-prone accounts for the half in 40's. Ingredients effective for the blood sugar level

38 control include "Indigestible dextrin", "Guava cake polyphenol", " Fermented black beans extract", and "L-arabinose", etc. The labeling "for those who are concerned about the blood sugar level" is permitted for foods effective for the diabetes in the "Food for Specified Health Uses". The number of foods certified as the combination food adjusting for the diabetic food exceeds 200 in the "Food for Special Dietary Uses”. The indigestible dextrin that is a dietary fiber and softens the absorption of sugar obtains a lot of the labeling permissions as an ingredient for the foods under the “Food for Specified Health Uses". Products containing the ingredient account for more than 20 including Calpis "KEN-CHA-Oh", etc., with product forms widely ranging from a drink type, freeze-dried, and powdery drink, etc. "Guava cake polyphenol" is the one to soften the absorption of sugar. "BAN-SO-REI-CHA" is the product containing this ingredient. “Wheat albumin” softens the digestive absorption of sugar. Miki Corporation uses it for a powder soup "Miki Glucoade K" and Nissin Falma for a powder soup "Gluco Design". "Fermented black beans extract" also soften the digestive absorption of sugar like other ingredients contained. Nippon Supplement, Inc. uses it for of a tablet type product and for a tea-before-meal product (powdery soft drink).

Tea that lowers the level of sugar Soup that lowers the level of Powder that lowers the level of in the blood sugar in the blood sugar in the blood “Miki “BAN-SO-REI-CHA” Yakult “Gluco Design” Nissin Falma Glucoade K” Miki Corporation

10) Aging people and foods related to the metabolic syndrome Two persons in three among the aging people 65-year-old or more are presumed to be patients with the metabolic syndrome, although any accurate data is available. While the metabolic syndrome can be prevented by changing lifestyle such as doing a constant exercise every day, the best method of the prevention is the improvement of eating habits. It sounds easy, however, to actually implement it is very difficult. Therefore, it implies that functional foods centering on the neutral fat measures and the obesity measures, and the "Food for Specified Health Uses" will increase more and more in future. From the viewpoint of preventing the illness before getting and treating it, Afore-mentioned products related to the metabolic syndrome will spread more and more over aging people in future.

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III. Important distribution Channel of food for aging people (1) Important Distribution Channel 1. Elderly nursing home and hospital as main distribution channels The facility routes through hospitals, nursing facilities for aging people and the “Intensive Care Home for aging people”, etc. are the main distribution channels of foods for aging people, while some foods, e.g. for those with weakened chewing sell though retail-store channel. Accordingly, main users of the foods are those who are in hospitals and such facilities as mentioned above. Given a recent tendency that persons in need of nursing care tend increasingly to stay at home, many companies start placing emphasis on mail order route. As mentioned above, foods for those with weakened swallowing and/or chewing do not penetrate enough into consumers. Many people in need of nursing care, who stay at home, start buying such foods with an eating experience, as a trigger, in hospital and/or nursing facility or an introduction from acquaintance. The foods sold through retail store channel are "sliced ones" and "ones made in the mixer”, which look similar to ordinary foods. They are mainly on the shelf next to baby food corner at supermarkets and drug stores, and on the health supplementary food corner at department stores. Popular ordinary foods among aging people also sell at the storefront of department stores as well as at mail order sales.

2. Retail store sales and mail order sales Foods for the Silver are facing with a difficulty to secure enough shelves at supermarkets, etc. because of the stock turn being not very good under the current situation. Many companies think that an explanation for the Universal Design Food is indispensable to have consumers take it right as the main users are elderly. There are companies that sell these foods only at health supplementary food corners or drug corners of department stores where face-to-face sales are available, while supermarkets and drug stores are usually self-service. The mail order sales are regarded as convenient for aging people who may have difficulty to go shopping by themselves, but there is a problem that there are actually many elderly people who do not get used to using the mail order. The users of foods for aging people are still limited due to the reasons shown the above: the difficulty in securing enough shelves at supermarkets as the retail store sales, and the limitation of the mail order sales although there are companies that employ only mail order sales for the cost reduction. On the other hand, foods for the active aging people sell through the channels of retail store and mail order in many cases. Many foods listed in the following sell through both the retail store route and the mail order route: they are foods under the "Food for Specified Health Uses" which are for the prevention of the lifestyle-related diseases, foods for physically weak persons, and ordinary

40 foods for the active aging people. Among them, the "Food for Specified Health Uses" and foods for physically weak persons of foods are characterized as the ones sold at health supplementary food corners of department stores and drug stores. This is because companies, which sell these foods, put their sales effort on such corners. The same as the case of the food for the Silver, the Active aging people tend to hesitate to buy foods labeled as "For the middle-aged and aging people". Therefore, many companies, which are selling ordinary foods for the Active aging people, have a difficulty to secure enough shelves.

Table III-1. Market of foods for aging people by easiness to eat (Universal design food) (unit: million tons) 2004 2005 2006 2007 2008(Assumption) Easy to bite 60 79 151 341 556 Easy to crush by gums 337 402 404 484 532 Easy to crush by tongue 425 689 1,037 1,507 1,849 Not necessary to bite 660 827 895 1,055 1,149 Thicken food 780 1,033 1,490 1,920 2,197 Total 2,262 3,030 3,977 5,307 6,282 Source: Japan Care Food Conference.

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Table III-2. Market size of foods of care foods Unit: Million Yen 2009 2005 2006 2007 2008 (Assumption) Foods for aging people in need of support 6,532 6,925 8,518 10,051 11,498 Dessert 502 557 568 578 586 Soft food 1,292 1,350 2,292 3,412 4,745 Prepared food 4,254 4,451 4,686 4,885 5,071 Rice foods 245 288 333 388 445 Others 238 279 638 789 651 Removing allergy ingredients 2,135 2,155 2,391 2,601 2,783 ′ Processed foods 850 865 968 1,060 1,140 Sweet 116 121 164 215 270 Main foods 250 259 295 327 356 Skim milk 806 793 780 770 762 Others 112 117 185 229 255 Home delivery 15,539 15,881 17,831 20,239 23.247 Note: End user price

Table III-3. Foods Home Delivery Market Food 2006 2007 2008 2009 (forecast) Pizza 1,220 1,222 1,225 1,227 Foods Home Delivery Market for elderly people 170 192 210 225 Sushi 380 381 385 390 Gathering Cargo and Delivery 48 50 50 52 Total 1,818 1,845 1,870 1,894

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Table III-4. Market Size of Food for Specified Health Uses (unit: million JPY) 2008 2009 Food 2007 (forecast) (forecast) Gum 92,178 91,076 90,022 Balanced nutrition food 786 759 737 Jelly 1,627 1,689 1,738 Sweetener 5,434 5,664 5,844 Desert 315 315 315 Boiled fish paste 385 373 364 Tablet candy 14,385 14,077 13,836 Cooking oil 46,017 47,753 48,240 Powdered soft drink 1,831 1,794 1,768 Soft drink 147,834 165,344 180,020 Staple food 724 709 699 Meat product 466 463 459 Seasoning 1,746 1,734 1,720 Soybean product 5,279 5,293 5,304 Milk product 323,286 317,938 314,049 Soup 1,316 1,306 1,296 Fat product 5,563 5,467 5,369 Others 30,647 39,194 49,623 Total 679,820 700,947 721,404 (Based on the retail price)

Table III-5. Health Supplementary Food Market Expenditure per Market size household No. of household (unit: million Change (JPY) (unit:1,000) JPY) (%) 2002 9,959 48,638 484,384 - 2003 12,208 49,261 601,376 124.2 2004 13,933 49,838 694,389 115.5 2005 15,024 50,382 756,940 109.0 2006 12,480 51,102 637,753 84.3 2007 12,037 51,713 622,470 97.6 2008 11,823 52,325 618,656 99.4 2009 (forecast) 11,718 52,634 616,793 99.7

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Graph III-1. Purchasing Source of Foods (Average of all household)

Supermarket Convince store 55.0% 4.2%

Department store 5.1% General retailer COOPERATIVE 16.9% 8.7%

Discount store and Volume retailer Others 3.7% 5.0% Mail-order house (Others) Mail-order house 1.3% (Internet) 0.2%

Graph III-2. Purchasing Source of Foods (Elderly Household)

Mail-orderMail-order house house (Others) Others (Internet) 1.8% 6.9% 0.1% Discount store and Volume retailer 2.8%

General retailer COOPERATIVE 21.6% 7.3%

Department store 7.5%

Supermarket 50.4% Convince store 1.6%

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Graph III-3. Purchasing Source of Prepared Food (Average of all Household)

Mail-order house (Others) Mail-order house 2.7% Others (Internet) 4.2% 0.2% Discount store and Volume retailer 1.5% General retailer 15.5% COOPERATIVE 8.6%

Department store Convince store 6.9% 11.5% Supermarket 48.9%

Graph III-4. Purchasing Source of Prepared Food (Elderly Household)

Mail-order house (Others) Mail-order house 2.6% Others (Internet) 4.9% 0.1%

Discount store and Volume retailer 1.3% General retailer 17.0% COOPERATIVE 7.4% Department store 12.0%

Convince store Supermarket 4.7% 50.0%

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Graph III-5. Purchasing Source of Health Food (Average of all Household)

Others General retailer Supermarket 18.7% 21.6% 5.1%

Convince store 1.0%

Department store Mail-order house 1.4% (Others) 37.8% COOPERATIVE 2.2%

Mail-order house Discount store and (Internet) Volume retailer 4.0% 8.2%

Graph III-6. Purchasing Source of Health Food (Elderly Household)

Supermarket 3.8%

General retailer Others 21.7% 22.1% Convince store 0.5%

Department store 1.2%

Mail-order house COOPERATIVE (Others) 1.2% 40.5% Discount store and Volume retailer Mail-order house 6.3% (Internet) 2.7%

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(2) Drug store sales As many foods for aging people and persons in need of nursing care sell at drugstores, we visited six drugstores located along the Den-en-toshi railway line and purchased sample products there. At the same time, we made interviews with the sales clerks. The followings are the reports of the three stores.

1. Kusuri no Katsumata /Mizonokuchi Shop Well-selling products by efficacy types are “neutral fat” related ones (Naishitoru, etc.)as the first place, followed by ,”blood sugar level” related as the second, and “cholesterol” related (KORESUKEA, etc.) as the third. Products of the "Food for Specified Health Uses" are selling well. Aging people tends comparably to pay an attention on the mark of the "Food for Specified Health Uses" and purchase them. The younger generation tends to pay attentions on package design and product description. Therefore, they do not stick much to the mark of the "Food for Specified Health Uses". Neither health supplementary foods nor functional foods are selling well as they are relatively expensive among products handled in drugstores and the effects are not easy to be obvious unless you take them continuously every day.

2. Anshin Support Shop/Ito Yokado Tama-plaza Shop They are mainly selling foods under the "Universal design Food" in the care food category. In addition, they are selling an easy-to-use spoon for persons with disabled hands. Foods for aging people and persons in need of nursing care are not selling well as a whole.

3. Natural Pocket/Tokyu Department Store Tama-plaza Shop Main products they are handling are "Calorie Navi" from the Nichirei and "Unit Calorie Gourmet" from the Kewpie, etc., which are side dishes in retort pouch effective to diabetics in calorie. They are cooked according to the unit of intake calorie for the diabetic (80kcal is assumed to be one unit). There are two types of packs, "three unit meal" and "four unit meal" Elderly women are major purchasers. There is a case that they buy them for stock in advance for their husbands when they go traveling. The canned foods that are not meat but looks like meat in appearance are selling. They are "LINKETTS", a sausage type made from soybeans, and "GLUTEN MEAT", a block type made from wheat, etc. (Manufacturer: San-iku Foods Co.)

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(3) Product examples of foods for aging people and heath foods handled in Television mail orders A lot of foods for aging people and heath foods are handled in Television mail orders. Table III-6. Product examples of foods for aging people and heath supplementary foods handled in Television mail orders Manufact Brand Name Efficacy Tel Price Ingredient/Element urer Forming the cartilage. Taicho Taisho An important element 0120-30- Pharmace 2,520Yen/30day Glucosamine Glucosamine that works at all the 6987 utical parts of the body. Helping activate the Kyowa Ornithine equivalent body. It helps wake up 0120-29- Remake Ornithine Hakkou 1,500Yen to 300 corbiculas per refreshingly in the 8585 Bio one unit morning. Helping walk easily Glucosamine, 0120-33 5,400Yen/90day Rakuraku 90 days with replenishment of DHC collagen, and 3-906 3,780Yen/90day cartilage components. chondroitin, etc. 20 kinds of amino 0120-09 1,680Yen/1mont acids such as Egao-no-Kurosu Decreasing body fat. Egao 3-093 h soybean kinases and natto kinases, etc. See Through 0120-30 9,870Yen/1mont Lactic acid Microorganism dieting Miona Right 7-343 h(150 tablets) bacterium and yeasts 0120-30- Hankel Aojiru Drinking vegetable FANCL Kale 2222 Nippon Blue Berry Rutein 0120-65 1,670Yen/1mont Effective to eyes. Suppleme Anthocyanin Tsubu Type 5-255 h 分(30 tablets) nt Replenishing vegetable Barley grass, fibers for those who fall Suntory 0120-00 3,780Yen/30 Kiwami-no-Aojiru Ashitaba, and short of vegetable Welness 5-05 packs quercetin in-taking. Replenishing hyaluronic Zenkoku 0120-92 1,200Yen(trial Hououjun acid with skin and Hyaluronic acid Tsuhan 1-821 price) joints. MBP (a small Biin Mainichi Hone Raising the bone 0120-30 980Yen/10 amount of protein Sutaku care density. 0-090 pieces contained in milk Snow and mother's milk)

(4) Food for aging people at elderly care facility 1. No. of elderly care facility is about 10,000 According to the research of The Ministry of Health, Labour and Welfare, number of non-governmental elderly care facility at end of 2008 was 3,400 that was 27.3 % increase from previous year. No. of residents was 140,798 which was 26,225 increase compared to previous year. In 2003 No. of facility was 694 and No. of residents was 42,661. Therefore No. of non-governmental elderly care facility increased 4.9 times and No. of residents increased 3.3

48 times compared to 2003. The background of increase is the revision of Elderly People Care Law. By revision of law, all elderly care facility must submit notification to prefectural government before they start to operation of facility. In addition to it, demand of entering home by elderly people has been increasing recent year. Following increase of facilities, troubles between facilities and residents are also increasing. Complains from residents to consumers’ center was 368 in 2008. In addition, facilities not sending notification to prefectural government has also been increasing. The Ministry of Health, Labour and Welfare suggested prefectural government to call attention to owners of elderly care facilities to submit notification. On the other hand, No. of governmental elderly care facilities at end 2008 was about 6,000. No. of elderly care facilities at end 2009 has not been published yet but according to assumption of elderly care industry it was more than 10,000 that includes governmental facilities and non-governmental facilities. As of end 2009 total No. of aging people who live in elderly care facilities is about 1,100,000 and 300,000 elderly people are waiting for entering elderly care facilities. Prefectural governments have been building elderly care facilities but due to the recent financial problem, building new facility is becoming difficult. Under these circumstance we, KRN visited two elderly care facilities, one is governmental facility and one is non-governmental facility, report of which is as follows.

Graph III-7. Number of the institutions, capacity, patients of the elderly care facilities

(Institutions) (Million people) 2,000 4,000

Number of patients Capacity Number of institutions 1,500 3,000

1,000 2,000

500 1,000

0 0 2003 2004 2005 2006 2007 2008 (year)

Source: Nihon keizai shinbun

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2. Elderly Taking Care Home “Toyokawa no Sato”, Osaka (Governmental elderly care facility) a. Facility Overview An Intensive Care Home for aging people newly established four years ago. Seventy three (73) people are now living. Among them, the youngest person is 75 years old while the oldest being 99 years old. The number of staff accounts for approx.30. b. Meal services * The meal services that are provided all within the facility are all outsourced to Narikoma Enterprises Co., an on-site cooking service contractor. It is a major company in the service industry, covering mainly Kansai and Chukyo areas. Nisshin Health Care Food Service Co., Ltd. is a famous company in Kanto. * Meals that Narikoma Enterprises Co. prepares at this facility in a day are as follows: Breakfast, lunch, and supper plus tea-time snack for 73 people for each, Meals for 20 people who come to the daycare service, and, Lunch for 30 staff. * Contents of meal: The menu in this facility is almost the same as the one for normal persons. No special one is provided even for aging people, with only one dish less than those for the staff. However, chopped food, food made in the mixer, low salinity food, and rice gruel etc. are provided for some specific persons. * Meal fee per day: The meal fee given by the government is 1,380 yen a day. However, this is not enough for full meal service, which costs about 1,600 yen actually. The difference is paid by the facility. Since this is a public facility, the difference cannot be charged to the dwellers. Many private homes charge the difference. c. Others * The admission cost per person of an Intensive Care Home for aging people is regulated by the "Act on Assurance of Medical Care for Elderly" and the "People Long-Term Care Insurance Act”. It is determined depending on dweller's incomes with the minimum fee of 40,000 yen and the maximum of 160,000 yen per month. * It is reported that there are fish food in a fish form without bones and canned food without tastes used as foods for aging people. When asking if this facility is using the above, they answered that the fish food is used and the canned food is not.

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3. Elderly Taking Care Home “Ryokuju no Sato”, Shizuoka (Non-governmental elderly care facility) a. Facility Overview Private owned nursing care home for aging people, which is located at a seven minute walk from the JR Ito Station, with a maximum capacity of 59 people. The youngest dweller is 78 years old while the oldest being 92 years old. This is run by a private company, not an “Intensive Care Home for aging people”. Therefore, the admission money of 2-5 million yen in a lump sum is necessary. (The amount of money differs by the size of room, age, and necessary care level.) The monthly cost ranges from 200,000 to 400,000 yen/person (This also depends on person). b. Meal services *Food materials and Cooking All the meals provided here are prepared and cooked by themselves in this facility. It does not employ any outside cooking specialty company. The cooks of the facility go out to market, greengrocery, fish store and supermarket, etc., and buy food materials every day. *Contents of meal: The dwellers of this facility are all aged and many of them have various troubles (for instance, those with weakened swallowing function, those who cannot eat by themselves, and those who have to refrain extremely from taking salinity, etc.). Therefore, appropriate meals are prepared for respective persons. The menu of meal is developed to meet properly to each person's health condition. Extremely speaking, a "hand-made" meal is prepared for each one. Because of the situation, the cost for cooking including ones for materials and labor may be higher compared to other similar facilities, according to the interviewee. *Meal fee per day: The meal fee per person a day differs greatly by person, ranging from about 1,500 yen to about 2,500 yen with 2,000 yen on average. c. Others *According to the Interviewee, because of the location at Itoh, which is the center of the Izu area, various kinds of fishes are available with a relatively low cost. It helps manage the operation a lot. *It is reported that there are fish foods in a fish form without bones and canned food without tastes used as foods for aging people. We asked the interviewee if this facility use them. His answer was as follows: "We never use such foods by all means. I have heard that there are especially many imports. The meals prepared here are all hand-made." d. Interviewer's impression Since "Toyokawa no sato" I visited last October is a public facility, no admission money in a lump sum is necessary. While this home is privately owned, the money is necessary, and the monthly fee is more expensive than that of "Toyokawa no sato". It is said that several hundred thousand aging people cannot currently enter such facilities in the whole Japan, and are standing by. Because the number of aging people will surely increase more and more in the future, I would think that the government, prefectural and city governments, etc. should positively develop such facilities that people can enter cheaply.

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IV. Market trend of food for aging people (1) Companies entering to the food category for aging people and product trend In the manufacturing of foods for weakened swallowing and chewing for aging people, necessary equipments and technology are in common with those for baby foods. Therefore, many baby food manufactures, which do not need much investment on them, have seemingly entered to the market, and enjoyed a higher ranked market share. In addition, the food for aging people is in the market positioned nearly to the pharmaceuticals with the main distribution channels being such facilities as hospitals and elderly nursing homes, etc. Because of this, as another characteristic of the market, many pharmaceutical manufacturers are also players. Main products in this category consist of two types: one is “thickened foods” for those with weakened swallowing, and the other is “chopped foods” and “foods made in the mixer” for those with weakened chewing. Those who have difficulty in taking even those meals shift them to the liquid diet. Looking at the current market in relation to future prospect, many companies place an emphasis on the thickened foods, which are selling well, and not a few companies put their efforts on the chopped foods, taking them in sight as a growth potential. There is "cooked soft vegetable food" as a food for those shifting from ordinary food to hospital diet. Health conditions and process for aging, etc. vary by persons. In order to satisfy as many people as possible, some companies try to develop and sell "transitional foods" between ordinary ones and the "Universal Design Food", taking into account the future growth of the market. Food thickener “Toromi fine” Kewpie Besides food makers and pharmaceutical manufacturers, convenience-store companies, where elderly customers are increasing, are working on product development for aging people. One of them is "home-delivering meal", which includes menu capturing the needs of aging people.

(2) Difficulty in appealing to consumers The Active aging people tend to hesitate to buy the package of food labeling "For middle and aging people", "For the senior" or "For aging people”. On the other hand, the foods without any labeling can look the same as ordinary foods. Thus, how to appeal and notify them is very difficult. Many companies are entering into the market. At the same time, the withdrawal also takes place a bit frequently. Accordingly, the market formation to a specific level has not yet to be in place. It seems that product variations are mainly for those with comparatively higher income.

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Because of their appealing point as "High-level materials used", "Safety ingredients" and/or "Sticking to the taste", etc., the price is a bit higher compared to ordinary foods. On the other hand, there are health supplementary foods and products containing, for instance, "Glucosamine", etc. which are popular materials among middle-aged and aging people. Similarly, there are foods containing "Sprouted brown rice" and "Five grains" with a health-oriented food labeling. Although there is surely a high latent demand, each company is struggling in terms of the development of product capturing the needs and its promotion activities. Blue soup controlling the absorption of cholesterol in the blood Under this situation, the food for the metabolic “Cholescare chitosan green vegetable juice” Taisho Pharmaceutical syndrome is on the increase trend. Many makers are transferring a priority in marketing strategy for the Active aging people market on a "metabolic measure", which is clear in needs.

(3) The status and future perspective of the food market for aging people and for persons in need of nursing care market As the aging society is rapidly progressing, the awareness and penetration of food for aging people and those in need of nursing care has been gradually increasing along with the demand expansion for uses in businesses such as hospitals and nursing facilities. etc. Retailers and distributors are aggressively approaching to the category for other markets than business uses. Ito-Yokado, for example, has set up a special corner "Safety Support Shop" in their stores, where they deploy dietitians. The number of shelves for food for aging people and those in need of nursing increases has been increasing in drugstores and supermarket. Accordingly the consumer awareness has been rising. The market will expectedly expand since the cases of home nursing care will increase, and the need for food for aging people and those in need of nursing care will be growing. Consumers prefer not to rely on the medicine as much as possible. As products of "Food for Specified Health Uses" can label their preventive factors, they should be attractive for sales to consumers who want to manage their own health by themselves without relying on the medicine. The following attributes/factors should be required for foods for aging people and those in need of nursing car in future: foods that consumers can feel effects in health, ones that are delicious and safe, ones that they can continue eating, and ones that are supplied stably with low price. As a country policy, the prevention and measures of lifestyle-related diseases have been actually implemented. The specific health checkup and specific health guidance centering on the metabolic syndrome measures have been obligated to health insurance subscribers aged 40

53 to less than 75-year-old since from April 2008. In addition, the market of foods for the neutral fat control has expanded along with increasing general consumers' understandings of visceral fat being the key factor of the metabolic syndrome. With relation to the above, the research and development of foods for the neutral fat control has started using mannoorigo sugar coffee beans and eucommia tea, etc., which have already labeled other healthy effects. One reasons for the expansion of products of "Food for Specified Health Uses" can refer to a consumers' consciousness who would like to have clear evidence against healthy food products. Under the current situation, products for the metabolic syndrome can secure a certain level of sales by advertizing them as "For the metabolic syndrome". Soon or later, however, this market would be saturated, and the competition would be intensified. Given the expected situation, when developing and promoting such products, you should be keeping in mind that consumers would like to have clear evidence against healthy food products. Many active aging people come under the metabolic syndrome or its "reserves", and a key for their lifestyle improvement is in the eating habits. An important concept should be a "meal for becoming health" that is easier and more sustainable rather than a “restrictive meal” which is easy to fail to continue. The market of food for high blood pressure and food for blood sugar level would be also expanding more and more in future. Especially, the market relating reduced-salt food and slightly salty would be expectedly growing.

V. Sales promotion strategy of food for aging people Sales promotion strategies of food for aging people can be classified as follows: (1) Advertisements in television, trade journals, general magazines, and free papers The most sales promotion activities are done in television and trade journals. (Example) H+B Life Science Co., Ltd. runs their advertisements in trade journals such as "Drug magazine", etc. (Example) Saraya Co., Ltd. runs their advertisements in the "Karadani Iikoto (Good for the body)", a health magazine, in the "Saita", a women's magazine, and etc. with the main target of women aged 40 yrs. old and above. In the advertisements, they recruit those who would like to receive a free sample, and induces them to the Internet site. (Example) Taisho Pharmaceutical Co., Ltd. uses the newspaper as a main medium since the major sales target generation of food for aging people reads it very well. (Example) NIKKEN SOHONSHA CORPORATION promotes their sales by introducing consumer's voices in the organizational paper for the sales agents "THE ALGAE".

(2) Information offerings through the Internet This strategy is to aim to add values on products and attract customers' interests by offering information of them through the net.

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(Example) Kanro Co., Ltd. issues an e-mail magazine. (Example) this company also runs a prize-offering advertisement in the prize site, and tries to induce new customers to the web shop. (Example) Saraya Co., Ltd. provides various types of information including a recipe collection using a low calorie sweetener "Lakanto S", product information, event campaign information, and secret stories of product development, etc. on the web site.

(3) Promotions in storefronts, hospitals, and nursing care facilities for aging people There are several types of promotions often used: one is to offer taste sample to consumers at storefronts of drugstores and supermarkets, etc. and the other is to have patients of hospitals or dwellers of nursing care facilities for aging people actually eat sample products, and etc. (Example) H+B Life Science Co., Ltd. provides product samples for nutrition managers of hospitals. (Example) Kewpie Corporation runs sample tasting sales of a dressing brand "Kira Kira Genki &" at storefronts of supermarkets. (Example)Kobayashi Pharmaceutical Co. conducts a PR activity of Du zhong tea at storefronts of drugstores by establishing a Du zhong tea corner. The aim is to draw customers' attention by POP and volume display and have them understand the active ingredients of the du zhong tea. It also enables them to observe customers' reactions directly. (Example) Saraya Co., Ltd. tries to persuade doctors, nurses and registered dietitians, etc. of medical institutes such as hospitals to introduce "Lakanto S" to their patients.

(4) Tie-ups with associations and academic societies, etc. There are cases of the tie-up with Japan Care Food Conference, and introduction and sample tasting of new products at related academic societies, etc. (Example) Saraya Co., Ltd. participates in and supports various academic societies such as Japan Diabetes Society, Japan Diabetic Association, Japan Society for the study of obesity, Japan Dietetics Society, and Japan Endocrine Society, etc. as well as seminars and exhibitions sponsored by newspaper publishers, and open lectures for citizens, etc. (Example) WAKODO CO., LTD. tries to spread the nursing meal in cooperation with Japanese Care Food Conference. They provide product information for consumers to easily understand by showing "Unified Classification (standard of choice of product selection".

(5) Mail order catalog Since the mail order is a leading distribution channel for food of aging people, to enrich mail order catalog is an important way of sales promotion. Many manufacturers do both store-based sales and mail order. (Example) Sunstar Inc. is sending catalog to users who buy products regularly, out of the list

55 of customers. Many of the middle and aging people, who tend to place an importance on the product quality, are repeat purchasers who order regularly every month.

(6) Present and great discount at the first order The first step for sales promotion of food for aging people should be to have customers use or eat products. Many manufacturers conduct discounting/premium promotion for the first triers to induce customers. (Example) Kaigen, Inc. presents “Obesity check & energy check card" and "Metabolic syndrome booklet" to those who bought "Meta Cut” first time.

(7) Participation in exhibitions As a sales promotion to those related to the food industry, many manufacturers participate in exhibitions, hand out materials and samples to them. Then they approach continuously to those who show interests. The exhibition is effective to see market reactions by promoting product before the market launch. (Example) NittoBest Corporation participated in the "Medi-Care Foods Expo" where they exhibited their products set on the actual tableware, which provided a clear image of actual table for those who saw them. They also offered sample tasting to promote the concrete taste and texture.

(8) Execution of campaign and use of image character This is to enhance product images and raise the awareness by running campaign and using an image character. (Example) Calpis Co., Ltd. adopts a common image character for "Amir" series and "KEN-CHA-Oh" series and run a sales promotion synchronizing with the TV commercial and the storefront. (Example) With the "Amir" commemoration of the tenth anniversary after the market launch, the company run "Happiness Campaign!" and "Let's start! Lifestyle Beverage Experience Champaign". The aim is to increase the exposure to consumers and make the sales expansion. (Example) NIKKEN SOHONSHA CORPORATION runs admission recruitment and admission campaign of "Chlostanin-club Card" with the credit function in cooperation with the Oriental Corporation. It aims to help make payment plan economically.

(9) Use of management system for clients This is to run sales promotions by making use of management system for clients. Many food manufacturers, suppliers, retailers are selling their products by internet, mail order. It is very important for food manufacturers, suppliers and retailers to know about their clients’ preference, what foods they purchased, how often they purchased, how much they paid at one shopping etc. They record and provide such information about their clients by computer and

56 time to time they send sales materials such as catalogues leaflets etc. to their clients by e-mail or by post. Many of food manufacturers, suppliers and retailers are using this system for administration work and management work for their clients.

VI. Studies of Public Research Laboratories, Institutes, Universities etc. on Food for aging people Studies on food for aging people are carried out mostly by the prefectural level. Followings are some examples:

Hiroshima Prefecture Prefectural Food Technology Research Center “Development of foods for aging people and for those in need of nursing care that uses a hardness control technology (Freeze Impregnation Method)” 1. Freeze Impregnation Method It is difficult to prevent the cell destruction of food and the elution of food ingredients caused by the cell destruction in the enzyme reaction operation done while stirring after putting the food materials in the enzyme liquid. Then, various methods of importing enzyme into food materials were examined. It turned out that the enzyme is imported into food materials within five minutes by making decompression processing in the enzyme liquid after the material is frozen beforehand and then defrosted. Under the control of the enzyme reaction, it becomes possible to control hardness of food arbitrarily. Making the best use of the advantage, they applied the Freeze Impregnation Method to develop foods for aging people and for those in need of nursing care. 2. Application of the Freeze Impregnation Method to root vegetables They have examined whether the Freeze Impregnation Method is applicable to control properly the hardness of a burdock and a as food materials for aging people and for those in need of nursing care. 3. Application of the Freeze Impregnation Method to beans There are many food materials with epidermis such as soybeans and Kidney beans, which are comparatively hard to bite although they are nutritious. This means that they are not suitable as foods for aging people and for those with difficulty in chewing. Then, they tried to apply the method to beans. 4. Application of the Freeze Impregnation method to the vacuum cooking There are many cases that foods for aging people and for those in need of nursing care are used at home, hospitals and nursing facilities, besides the usage for business. Then, they have tried to develop the frozen impregnated technology that is applicable to a small amount and compound cooking. 5. Development of inspection food for deglutitious function by the simultaneous impregnation of oral contrast medium and enzyme In order to evaluate safety, they have made the clinical validation of the food for those in need of nursing care produced for trial purposes in the Freeze Impregnation Method in cooperation with the Prefectural Hiroshima Hospital. 57

Akita Akita Research Institute for Food and Brewing, Research Institute for Prefecture Brain and Blood Vessels Akita, Akita University, Akita Prefectural University, and Tohoku University "Development of new food evaluation method by real-time measurement of brain waves, etc. and Research on brain function activation by swallowing action" To develop a new food evaluation method that enables to estimate objectively levels of satisfaction and healing, and levels of demand and preference, etc. by measuring brain waves in an actual intake situation of food, thereby enabling to evaluate the textures and tastes of foods for aging people from consumer's viewpoints. Moreover, to explore development of foods that can be effective in the dementia prevention by studying the revitalization of brain functions incorporating with swallowing action. "Development of foods and liquors that are effective in the health maintenance both of the mind and body of the middle and aging people" The prevention of lifestyle-related diseases in the generation of the middle and elderly is a critical challenge for an individual person as well as for the country. Given the situation, the aim of the development is to develop foods and liquors with the following features: foods and liquors of which nutrition and textures correspond to the physical description of the middle and elderly, and the ones with physiology functions that contribute to their health maintenance. Furthermore, the aim is to develop foods and liquors by best utilizing abundant farming products centering on rice, which are available in the region. They should be a type of foods (brewed foods and fermentation foods, etc.) for the aging society, which can support the health maintenance of the mind and body of the middle and elderly. "Development of 'Food for Specified Health Uses' based on cereals, etc." Adiponectin that is an anti-obesity hormone changes depending on the content of meal. The development processes involve the following studies: to explore food elements that increases adiponectin of the body and verify the effect, to verify the function of blood pressure normalization of natto and to specify associated components, and to explore physiological synergies of food elements, to specify associated components and to verify the functionality. Based on the above studies, they aim to acquire the permission of 'Food for Specified Health Uses' "Development of foods for aging people that make use of the physiology functionality of food materials produced in the prefecture" Their aim is to develop foods that contribute to the health maintenance as well as correspond to the deglutitious capability and preference of aging people, using raw materials of agriculture, forestry and fisheries produced in the prefecture. More specifically, they plan to develop foods including rice cake without cohesiveness that has an effect of the aspiration prevention, gelatinous , staple-grain rice gruel that has an effect of the obesity prevention, and seaweed pudding, etc., by using raw materials such as rice, soybean, mountain herbs, water shield, seaweeds, and horse chestnuts, etc.

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Hokkaido Hokkaido Food Processing Research Center "Development of processing technologies of foods suitable for aging people, which are expected to be used in nursing care facilities and hospitals, etc." To study processing technologies that support development of retort and/or freeze-processed products. They can eliminate harms caused by microorganism in the processes of distribution and preservation, while aging people is vulnerable to the harms due to the decreasing immunity and resistance power, etc. To examine the best processing conditions combining preprocessing such as enzyme processing, and cutting methods of food materials, etc. and processing technologies such as heat-treatment etc. This is to develop semi-cooked foods that should be very soft so that aging people can crush by gum and tongue and then can easily swallow. To establish technologies to make food materials paste by enzyme processing, etc. and to utilize the salmon skin gelatin as a gelator. This is to aim soft freeze foods which enable to hold drips of flavor elements, etc. and support easy swallowing. To examine methods of handy physical properties evaluation that can be easily used on sites of food factories to control the quality of softness etc.

"Development of foods for the metabolic syndrome prevention by utilizing unused farming production materials" They aim to develop materials of health supplementary foods for the metabolic syndrome prevention and to produce products by using the materials. Unused faming production materials include processing by-products of small fruits such as chokeberries and blue-berried honeysuckles, etc. and unused vegetable parts etc., which are all produced in Hokkaido.

Shizuoka Prefecture Shizuoka Prefecture Food Technological Society "Soft meal for aging people ~ Happy and Delicious meals~ " Junwa Rehabilitation Diagnosis Institute "Recent food poisoning circumstances and Technological development for security of food" National Agriculture and Food Research Institute

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Tokyo Tokyo Metropolitan Institute of Gerontology "Importance of the eating habits that keep eating meat" The number of albumins that accounts for about 60% of the protein in blood decreases along with aging. The incidence rate of heart disease and the dangerous rate of the death of aging people, due to heart disease, whose albumin level is low (the nutrient state is bad) are 2.5 times as high as the ones of aging people whose albumin level is high (the nutrient state is good). That shows that the prevention of heart disease of aging people is possible by improving the nutrient state of the body. The intake of milk, egg, meat, and fats has been increasing greatly while the average life expectancy has been extending after the war. On the other hand, the intake of cereals has been decreasing greatly. The life expectancy has extended rapidly since animal protein foods and fats, not biased to the fish, came to be eaten abundantly. Such a tendency can be admitted by the research that covers the relationship between the mortality rate and the dining habit for ten years among aging people aged 70-years old. The intake of animal protein and fats is important for the bedridden prevention and the life extension. The National Nutrition Investigation conducted in 1997 shows that the intake ratios between meat and are one to one until 40 years old, and that the difference of the ratios has started bigger around 50 years old and onward, resulting in one to two in 70's. However, the intake ratio itself of animal proteins stays the same. The older you are, the more the intake of animal protein foods are biased to seafood. The average intake volume of meat and seafood are roughly 80g and 90g respectively among the entire Japanese. We strongly recommend that aging people should take one to one in the intake ratio of meat and seafood. The intake variations of foods tend to be less and less among aging people. A long-range tracking survey clarifies that aging people with more variation in eating habits tend not to become bedridden easily than those with less variation.

Niigata Prefecture Niigata Prefecture Boiled Fish Paste Union "Development of emulsification ground-fish-meat food for aging people" They have developed, for aging people, an emulsification ground-fish-meat food product "Melting fish" made from seafood captured locally, which are also used for seafood paste products. They are characterized as "Melting texture", "High calorie", and "Free and easy usage". They are selling mainly to welfare-related facilities within the prefecture. Supporting and Test Research Organizational bodies: Niigata Industrial Creation Organization(NICO), Industrial Research Institute of Niigata Prefecture , Niigata Prefecture Brewing Examination Center, Niigata Agricultural Research Institute Food Research Center, Niigata Prefecture Fishery Oceanic Institute, Niigata Bio Research Park, and JST Satellite Niigata

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Graduate School of Agricultural and Life Sciences, The University of Tokyo "Prevention of metabolic syndrome" They are doing molecular and cell biology researches that clarify a complex living-body -response mechanism by using various cultured cells and analyzing the gene level. The main themes of research are as follows. 1.Molecular mechanical analysis and anti-obesity research of fat drop formation in fat cell 2.Research on revitalization control of transcription factor SREBP that adjusts lipid metabolism 3.Molecular mechanical analysis of stability of LDL receptor mRNA and research on anti-metabolic syndrome 4.Molecule and cell biology researches that analyzes new function of bile acid

Sapporo city An elderly care facility in Sapporo city “Study on the improvement of eating power by muscle training” Nursing facilities for aging people located in Sapporo conducted experimental measures to prevent the dwellers from weakening biting and swallowing powers in cooperation with a research institute located in Tokyo. They checked biting power by using a special chewing gum and measured how many times each dweller can swallow saliva in 30 seconds. Based on the measurement, they assessed and quantified the following four items in a full mark of 100 points respectively and checked them regularly: the four items are "Biting power", "Swallowing power", "Movement around the mouth", and "Degree of cleanness of the mouth". The tracking search with the 2000 elderly indicated for the following five years that once persons cannot take meals from the mouth and have to rely on the drip or the gastric fistula, the probability rises that they weaken Graph VI-1. Average of survival days their health conditions and even pass away in a short period. Drip

Gastric fistula

Oral

0 500 1000 1500 (days)2000

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Compared with persons who can take meals from the mouth, the average survival days of those relying on the gastric fistula and the drip are much shorter, 2/3 and 1/4 or less respectively. This shows that a factor for shortened average survival days could refer to the workings of the small intestines. The villus that covers the surface of the small intestines keeps the immune function to prevent bacilli from invading in the body as well as absorbs nutrition. However, the usage of the drip and the gastric fistula makes the villus shrink and weaken in the workings. The following trainings prevent the function to eat from weakening: To strengthen muscles such as the gullets and the Adam’s apples by lying on the back, lifting the neck and speaking three minutes every day. This is to raise swallowing power. In a case of a 85-years old woman, the assessment showed after the three month training indicated that the point of her swallowing power which had been weak increased by 2 times, and her eating power as a whole improved. The movement of eating constitutes co-operations with biting and swallowing powers, etc. Even the swallowing only is coordinated with 25 muscles or more. The muscle and the brain weaken with aging so that aging people cannot take meal well. As the tongue is especially important for eating, aging people can improve eating functions by training the muscle of the tongue through vocal practices. For example, such vocal practices work very well: "Pa, Pa, Pa, Pa, Pa", "Ta, Ta, Ta, Ta, Ta", "Ka, Ka, Ka, Ka, Ka", etc. The "Pa" pronunciation requires closing the lip, the "Ta" does thrusting out the tongue upfront, and the "Ka" does lifting the interior part of the tongue. The muscles of the tongue used when pronouncing these three are identical with those used for eating. Therefore, repeating the pronunciation of "Pa", "Ta", and "Ka" helps improve swallowing power.

Niigata Niigata University Graduate School of Medical and Dental Sciences Prefecture People have to take meal everyday to live. However, not a few people have weakened abilities in chewing and swallowing due to sickness and aging. It is teeth and tongue that people use most when taking meal, in other words, eating. When people weaken their oral abilities centering on teeth and tongue, people weaken abilities in chewing and swallowing accordingly. The Niigata University Graduate School of Medical and Dental Sciences is now researching the following studies mainly in the Oral Science: how the decrease of intake ability and deglutitious ability is brought about, what makes it recovered once they have decreased, what kind of meals are suitable to persons with weakened abilities in chewing and swallowing. Then, the results of the research studied lead to actual product development in cooperation with Forica Foods Co., Ltd of Niigata Prefecture.

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VII. Rules and regulations related to production and sales of foods, and safety of foods for elderly Rules and regulations related to import and sales of foods and safety of foods for elderly are essentially same as for normal people. There are no special rules and regulations for foods for elderly. Therefore we summarize rules and regulations for import and sales of foods as follows.

(1) Food Sanitation Law 1. About law The purpose of the law is to prevent the occurrence of health hazards arising from human consumption of food so as to contribute to the protection of health of people by conducting regulations and measures deemed necessary, from the view point of public health, for securing food safety.

2. Articles targeted by the law 1) Food 2) Additive 3) Natural flavoring agent 4) Apparatus 5) Container/package

3. Monitoring system for imported food Under this law, the Minister of the Health, Labor and Welfare may introduce the procedures for development and publication of monitoring and guidance programs for imported food, thus enabling the minister to timely issue orders, at his judgment, to inspect imported food if such food is highly suspected of violating the relevant laws. Under this law, governors of prefectures are authorized to suspend or ban such importers form doing business.

4. Responsibility of operators Operators shall make efforts to take as many as possible measures at their responsibility to secure safety for food.

5. Hearing opinions from the public The Minister of Health, Labor and Welfare is requested to disclose necessary information to the public and consumers, and obtain opinions from the public or consumers.

6. Positive list system of agricultural chemicals Positive list system for agricultural chemicals is the system that prohibits sales etc. of agricultural chemicals in which residual chemicals remain. This system started in May 2006. Objective materials and products are agricultural chemicals, drugs for animals and feeds additives, all foods that include perishable products and processed foods.

7. Penal Provisions Considering the fact that consumers are getting fearful and distrustful about food safety because of such problems as residue-prone agricultural chemicals in imported agricultural products and false labeling on food, penal regulations have been established in order to prevent the violations of the relevant laws.

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Table VII-1. Penal Provisions for Violators of the Food Sanitation Law effective as from August 29, 2003 Violations Punishments Sale of hazardous food, use of unspecified Imprisonment for not more than 3 years, additives, violation of order to dispose, violation or a fine of not more than 3 million yen of order to suspend business In case of firms: a fine of not more than 100 million yen Sale of food violating the specifications and Imprisonment for not more than 2 years, standards or a fine of not more than 2 million yen. Sale of food violating the labeling standards In case of firms: a fine of not more 100 (applicable to the case of violation of million yen specifications and standards and labeling standards) Violation of the provisions for facilities Imprisonment for not more than 1 year, standards or a fine of not more than 1 million yen Violation of the order to improve business facilities Violation by doctor of the provisions for reporting food poisoning cases Refusal to a spot inspection, False reporting, etc. A fine of not more than 500 thousand yen Punishments on the registration organizations Imprisonment for not more than 1 year , (e.g. violation of confidentiality obligations or a fine of 1 million yen by the staff of relevant organizations)

8. Import Notification System Anyone intending to import foods, etc. shall submit import notification to the Minister of Health, Labor and Welfare whenever imported. Import notification is under the control of about 31 quarantine stations of sea ports and air ports in Japan. In order to control sanitation/hygiene and to secure safety of import foods, etc., quarantine stations shall carried out spot check as needed in addition to the examination of documents for all import foods, etc.

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Chart VII-1. Flow Chart of Import Notification System

Consulting with import food monitoring office Consulting in advance in advance

Preparation of documents for import Import notification of foods. notification Other documents * Explanation paper of raw materials, production flow chart, sanitation certificate, test certificate etc. Arrival of cargo

Import Notification Import notification by submitting of import notification of foods etc

Examination by Inspection is required Inspection office

Monitoring Order of inspection

Inspection is not required Inspection

Passed Rejected

Issue of certificate

Custom clearance Disposal or ship-back Distributors

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9. Allergic labeling Foods including allergen (specifics ingredients) are classified to those required labeling by regulation and those advised by notification because of differences in an actual number of allergic appearances of disease and its severity, etc.

Table VII-2. Allergic labeling Category (Specific ingredients etc.) Foods including allergen Foods obligated to label in the Food wheat, buckwheat, egg, milk, and peanut, Sanitation Law (Foods causing serious lobster, crab, illness and numbers of allergic appearances) Foods advised to display (Foods with less abalone, squid, salmon , ,orange, appearance, or less seriousness if appeared, kiwifruit, beef, walnut, salmon, mackerel, or insufficient scientific findings not soybean, chicken, pork, mushroom, peach, always at present) yam, apple, banana and gelatin

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Chart VII-2. Investigation and inspection of agricultural products and foods

Agricultural products and foods produced in overseas

Import

Vegetable and fruits Meat, hum, Processed foods Sausage Fishery products

Plant Animal Inspection Inspection

Import Notification, Inspection

Inspection by tax office

Payment of import tax, value add tax

Receipt of cargo

Wholesaler, Retailer

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(2) The Law Concerning Standardization and Proper Labeling of Agriculture and Forestry Products (Law for JAS) 1. About law a. JAS Standards System The system affixing JAS mark to the products stipulated by the Minister of Agriculture, Forestry and Fisheries and passed examination of JAS Standards. b. Standardized Quality Labeling System This system is the Standardized Quality Labeling System which obligates all producers/manufacturers and distributors to label their products in accordance with the quality labeling standards established by the Minister to enable consumers to select products more easily and confidently. (Note) JAS is abbreviation of Japanese Agricultural Standards and it is currently used as the word that represents whole system of JAS Law. The standards that regulate individual quality standard is called as JAS Standard.

2. Products Covered by JAS Standards: Agricultural, forest, livestock and marine products as well as products manufactured or processed with such produce as raw materials and designated by Government Ordinance.

3. Grading in Accordance with JAS Standards If the product is judged to be acceptable as a result of grading (inspection to check whether the produce or product meets the relevant JAS standard), the produce or product may carry a grading label (JAS symbol). It is the responsibility of the producer or manufacturer to determine whether or not the products should be subject to grading. Grading is conducted by the manufacturers who have been certified by registered certification organizations. They inspect and judge the produce and products and the production and manufacturing process by themselves.

4. Quality Labeling Standard System In order to enable consumers to select products, producers and distributors are requested to affix label of the products.

5. Labeling requirements based on the quality labeling standards All the processed foods (those in container or package) and perishable foods for general consumers must be labeled. a. Processed Food Quality Labeling Standards

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Processed foods in containers or packages are obligated to display the name, raw material name, content, the best before date, preservation method, the name of manufacturer etc. and the name of and address of corporations. This label is required to collectively display on an easily visible place on containers or packages. b. Perishable Foods Quality Labeling Standards Labeling on perishable foods is required to show their name and the country of origin. c. Marine Products Labeling Standards Labeling on marine products among perishable foods was obligated to display the defrost and/or culture in addition to the requirements based on the perishable quality labeling standards. d. Labeling concerning genetic modification Labeling concerning genetic modification shall be applied for soybean (including green soybean and soy bean sprout), corn, potato, hatchet, cotton seed, alfalfa, and beet, and processed foods mainly made from these raw materials. * Products that were previously frozen and subsequently thawed must use the word "thawed" * Products that were cultured must use the word "cultured" The Law requires non-retail vendors to include labeling on the container or packaging in a readily visible location, and on the bill of parcels or invoice of delivery. The Law requires retailers to place labeling on the container or packaging in a readily visible location, or to display it in a readily visible location adjacent to the applicable fresh food item.

(3) Food Safety Basic Law 1. Purpose of the law The purpose of the law is, considering the urgent necessity of measures to cope with changes in the environment affecting dietary lives of people, such as development of science, advancement of globalization, etc., to promote comprehensive measures to secure food safety by laying down the basic principles on safety for food, defining the responsibility each of the government, local authorities, and food-related businesses, clarifying the role of consumers, and establishing basic policies for developing measures.

2. Outline of the law a. Basic understanding of securing safety on food b. Proper measures for each stage of food supply process c. Responsibility of food-related businesses d. Acceleration of exchange of information and opinion e. Prevention from bad effects of consumers beforehand f. Role of consumers

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(4) Pharmaceutical Affairs Law 1. Purpose of Law This purpose of this law is to control and regulate matters concerning drugs, quasi-drugs, cosmetics and medical appliances, and to assure the effectiveness thereof.

2. Outline of Law The law requires that manufacturers (importers and sellers) obtain approval for manufacturing (import) and permission for business as a manufacturer (import and sales) for each product.

3. Subject Items Drugs, quasi-drugs, cosmetics, medical appliances and medical appliances for animals. a. Definition of drugs Drugs, for prevention and treatment of diseases are these approved over the inspection of quality, efficacy and effectiveness, and safety on name, ingredients, quantity, directions for use and dose, and efficacy by the Minister of Health, Labor and Welfare or the prefectural governor Pharmaceutical Affairs Law Article 2, Clause 1 defines the drugs as follows, * Substances listed on the Japanese Pharmacopoeia. * Substances to be used for diagnosis, medical treatment and prevention of diseases by people and animals, including quasi-drugs, but excluding devices and instruments for such as dental, medical and sanitation supplies. * Substances to give influence on organizations and functions of people and animal bodies, including quasi-drugs and cosmetics, but except for devices and instruments. b. Difference from Health supplementary foods Health supplementary foods are regarded as foods in the nature of things and can not profess efficacy and effectiveness approved for the drugs. Should foods be liable to cause judgment of drugs, it is against the Pharmaceutical Affairs Law in view of advertisement and sale without permission and approval for the drugs.

< Inspection under Law > Whether the products fall under medical treatment goods or not (to classify the products as either foods or drugs) will depend on a comprehensive judgment of the essential ingredients, volume to be used, sales methods and the representation / explanation when sold, to assure that ordinary citizens may recognize that such products satisfy the purpose of drugs.

< Attestation System > Manufacturers (importers/sellers) of drugs are required to obtain approval for each product (evaluation of quality, effectiveness and safety) and an approval for business (evaluation of

70 structural equipment manufacturing management systems). Approval of the Minister of Health, Labor and Welfare is required for Medical equipment except some equipment. Of low risk medical equipments, some items, which standards are stipulated by the Minister of Health, Labor and Welfare, do not require the approval of the Minister to which the certification system of applicability by the third parties certification agency to the standard will be introduced.

(5) Act Against Unjustifiable Premiums and Misleading Representation This Act, in order to prevent inducement of customers by means of unjustifiable premiums and misleading representations in connection with transactions of a commodity or service, by establishing special provisions for the Act Concerning Prohibition of Private Monopolization and Maintenance of Fair Trade, aims to secure fair competition, and thereby to protect the interests of consumers in general.

1. Prohibition of misleading representations No entrepreneur shall make such representation as provided for in any one of the following paragraphs in connection with transactions regarding a commodity or service, which he supplies: a. Any representation by which the quality, standard or any other matter relating to the substance of a commodity or service will be misunderstood by consumers in general to be much better than the actual one or than that of other entrepreneurs who are in competitive relationship with the entrepreneur concerned, and thereby which is found likely to induce customers unjustly and to impede fair competition; b. Any representation by which price or any other terms of transaction of a commodity or service will be misunderstood by consumers in general to be much more favorable to the consumer than the actual one or than those of other entrepreneurs who are in competitive relationship with the entrepreneur concerned, and thereby which is found likely to induce customers unjustly and to impede fair competition; or Designation, restriction, prohibition as well as amendment and abolition thereof under the provisions of the preceding subsection shall be made by notifications.

2. Cease and desist order a. The Fair Trade Commission may, in the event there is an act violating the restriction or prohibition under the provisions of Section 3 [restriction or prohibition of premiums] or violating the provisions of Section 4 [prohibition of misleading representations], order the entrepreneur concerned to cease such an act, or to take the measures necessary to prevent the resurgence of the said act, or to take any other necessary measures including publicizing the matters relating to the implementation of such measures. Such an order may be issued even when the said violation has already ceased to occur.

71 b. The Fair Trade Commission may, in the event it has issued an order as stipulated in the preceding subsection (hereinafter referred to as "cease and desist order"), make a notification on the said order in accordance with the Rules of the Fair Trade Commission.

3. Extravagant advertisement of health supplementary food and functional food The Consumer Affairs Agency and prefectural governments intensify the monitoring and guidance of false and exaggerated expressions such as "Absolutely effective" often seen in a part of advertisements of healthy foods and functional foods running on television, newspapers, and internet. "Everyone can lose weight substantially only by drinking this without fail" and "The elements of obesity measures relief constipation”: These are examples of false and exaggerated expressions that the Consumer Affairs Agency raised for advertisements for healthy and functional foods. The Agency mentioned that the expression "Everyone can achieve without fail" can mislead consumers remarkably in terms of food superiority, and the expression "'Constipation can be relieved", which is related to body functions, could highly conflict with the Pharmaceutical Affairs Act is high. The Health Promotion Act, the Pharmaceutical Affairs Act, and the Act against Unjustifiable Premiums and Misleading Representations regulate the advertisement of healthy food and functional food, etc. Expressions that are different from fact or can mislead the consumer are prohibited. Exaggerated expressions of efficacy such as "The Best" and "Preeminent" and an expression "I was recovered completely from cancer by drinking this." with scarce scientific basis are not admitted, either. They can all mislead the consumer. Only brands of "Food for Specified Health Uses", "Food with Nutrient Function Claims" and “Food for Specified Health Uses" are admitted to claim their functionalities in the advertisement. The Consumer Affairs Agency picked up 547 false and extravagant advertisements on the Internet, which could mislead the consumer, and guided to delete or to correct their expressions in March this year. However, under the current situation where small and medium-sized companies in many case run such false advertisements, new ones one after another are appearing even if intensified monitoring and guidance is taking place. On the other hand, the movement of self-regulation has taken place in some industries, too. The Japan Direct Marketing Association has established the “Guideline in handling of the supplement" in June '09. The association has more than 500 member companies centering on large-scale ones. They request the member companies to observe the following points, "Do not run, by all means, any false and exaggerated expressions which could mislead the consumer" and "Clearly indicate how to take", etc.

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Table VII-3. Expression of food advertisement to which attention should be paid Examples of expression Reasons "The Best", "Absolutely", "Top of Japan”, Whether they are true cannot be proven. “Preeminent" "It is said that it is effective to ○○○.” Hearsay expression could mislead. "The import permit was given by from the No law system gives permission to imported Ministry of Health, Labour and Welfare.” food individually. "I was recovered completely from the cancer This is only an experience without any by drinking this." scientific basis.

VIII. Government and Companies initiatives for the safety of food (1) Establishment of Consumer Affairs Agency The government established the Consumer Affairs Agency on September 1, 2009 as a governmental steering role for consumers. The Consumer Affairs Agency has broad jurisdiction over issues that deal with consumer safety and piece of mind, including “Safety” of products and foods, “Trade” of commodities and financial products, “Labeling,” etc., and acts as a control tower for the consumer administration as a whole. 1. Purpose of establishment The establishment of the Consumer Affairs Agency is a symbol of the shift towards and administration that takes on the viewpoints of general consumers, and while providing consumers with safety and piece of mind, it improves the transparency of rules and increases the ability to anticipate administrative actions, and while the industry feels safe, the it aims to establish consumer administration that can offer to consumers new products and services. The relevant laws as the basis of the administration of the Consumer Affair Agency are the Food Sanitation Law, the Law on Standardization and Proper Labeling of Agricultural and Forest Products (JAS Law), and the Health Promotion Law. 2. Areas Covered and Duties a. Areas The areas covered are labeling (foods, utensils, housing, etc.), trade (areas with many issues, such purchases through auctions, Internet, etc.), services (wages, travel, etc.), Safety (household goods, Food Sanitation Law), and others (product liability, pyramiding, etc.). b. Roles concerning labeling *The Consumer Affairs Agency formulates label standards. Only the Consumer Affairs Agency holds the authority to make the standards to be observed and executes them. *The Fair Trade Commission, the Ministry of Agriculture and Forestry, the Ministry of Economy, Trade and Industry and the Ministry of Health, and Labour and Welfare are in charge of executing necessary inspections and administrative guidance, and they are obligated to notify the Consumer Affair Agency of necessary information. (The Consumer Affairs Agency executes inspections by itself when required.) 73 c. About the JAS Law While the JAS Law consists of the two systems, the JAS Standard System and the Quality Label Standard System, the Consumer Affairs Agency has the jurisdiction over the latter. This does not mean, however, that the Quality Label System is taken out from the JAS Law, but does means that the JAS Law is handle by the Ministry of Agriculture, Forestry and Fisheries and the Cabinet Office (Consumer Affairs Agency). Since the JAS Standard System is not in the jurisdiction of the Consumer Affair Agency, the JAS Certificate System based on JAS Standard System is handled by the Ministry of Agriculture, Forestry and Fisheries. The Consumer Affair Agency has the authority to plan quality label standards, but the Ministry of Agriculture, Forestry and Fisheries can make proposals for planning standard and also can use existing organizations, such as Agricultural Administration Bureau, Consumption Safety Technological Center, Agricultural Administration Office, etc. to make necessary inspections.

(2) Inspection of safety of import foods under Food Sanitation Law 1. Submission of the "Notification Form for Importation of Foods, etc." Import notification shall be submitted to tax office after the cargo is transported to the bonded warehouse. However, if the prior notification program is utilized, the notification can be filed as early as seven days prior to the cargo's arrival. 2. Documentary examination At this point, an examination is conducted as to whether there are any food sanitation problems or safety of food based on the content of the completed notification form and other related documents, past import history with the same food and any past violations, the laboratory test results of any voluntary inspections, or others. If it is determined that cargo inspection is required, inspection categories and inspection methods are defined, 3. Certificate of notification If the determination is made that no further inspection is required, a copy of the submitted notification (2 copies) is stamped "Submitted" (on the right hand column) and given to the importer. This copy is appended to the declarations at the Customs. 4. Inspections Depending on the circumstances, food sanitation inspectors from the Quarantine Station will go out to the bonded warehouse or container yard where the cargo is being stored for on-site inspection. If necessary, the food sanitation inspector will take samples and conduct a laboratory testing and check safety of foods. 5. Certificate of inspection Articles that passed inspection have one copy of the submitted notification stamped "Passed" (on the right hand column), and the copy is given to the importer.

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This copy is appended to the declarations at Customs.

6. Handling of cargo that fails inspection Instructions will be issued by the Quarantine Station. Importer should follow their instructions,

(3) Companies initiatives for the safety of food Any food companies cannot do anything for food safety measures, saying, "Let's put them aside as much as possible" as they require much costs. To take some food safety measures should be the first and immediate priority for any food related companies. The standards of food safety measures adopted worldwide are HACCP and ISO22000. However, since the adoption of the two standards is costly, only a few food-related companies introduced them. Many companies, especially among small and medium-sized companies, which have completed them, are limited to a small number. However, food companies that have not employed the standards set their own and produce products with the maximum attention paid to the safety management of products when manufacturing them. In particular, manufacturers that are producing foods for aging people pay the maximum attention to food safety measures including selection of raw materials used, safety management of production processes, forms of end-products, and ways for intaking the products, etc. This is because aging people tends to be physically weak and weak in the immunity. In addition, companies in the distribution channel such as transportation companies, wholesalers, and retailers also pay the maximum attention to keep the safety of foods at the stage of distribution. The cases of the camouflage of the best-before date and the use-by date are taking place frequently in Japan now. They could threaten the safety of food. When food accidents caused by such camouflage happen, the media of mass communication take up them on a large scale. This could be a trigger for bankruptcy of company causing the accident in the worst case. (Refer to the next chart).

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IX. Trend of health supplementary foods and foods for aging people seen in exhibition (1) Current Situation of Medical Care Foods and Nursing Care Foods seen in the Medi-Care Foods Expo "Medi-Care Foods Expo" was held in the Tokyo Big Sight on Feb. 9 and 10, 2010. "Medi-Care Foods Expo" is an only one and special exhibition in the country, of which theme is "Food" for medical treatment and nursing care. There were many foods, related equipments/machines and services exhibited. The foods included cooked and nutrition-adjusted ones for aging people and physically weak persons, and various food materials for hospitals and nursing care facilities for aging people, etc. "Super-Aging Society" with one or more out of five being 65 yrs. old or more actualizes in the country, and an idea that "Meal is a part of medical treatment" has widely spread. Given the situation, the needs of "Foods" for medical treatment and nursing care have increased more and more. Meal servicing in medical treatment and nursing care facilities has been changing from a conventional and uniform "Mass feeding" to the one of an individual nutrition management and meal. On the other hand, there is a limit in proceeding with the concept on actual nursing care spots. Therefore, the development of products and supports related to caring jobs by business entities are highly expected. Since the medical care system has been saturated, a shift has started to the home treatment of patients with chronic diseases. In addition, the number of elderly

households has exceeded one third of the total, in particular, that of elderly single and elderly-couple households has been increasing remarkably. Moreover, as "Baby boom generation" will reach aging people soon, it is expected that potential demand for foods appropriate for home care and for aging people will increases more and more. Given the background mentioned above, the scale of "Medi-Care Foods Expo" has been bigger and bigger every year with 52 exhibition companies and 10,549 visitors in total for the two days

76 this year. The main exhibition zones and the respective products are as follows. 1. Food zone for medical treatment and nursing care (foods for persons with difficulty in food in-taking and swallowing, nutrition-adjusted foods, thickened liquid diets, and food thickeners, etc.) 2. Zone for home caring and small-scale facilities (home-delivered meals, and cooked meals for physically weak persons and aging people, etc.) 3. Food material zone for hospitals and nursing facilities (food materials for hospitals, functional ingredients, and sweeteners, etc.) 4. Equipment and machine (cooking appliances, tableware, nutrient management software, and publications, etc.) 5. Oral health care zone (oral health care products, related equipments, and visiting service of dental treatment, etc.)

There were, in particular, many foods exhibited for persons with difficulty in food-intaking and swallowing such as softened foods and food thickeners, etc. In the softened food category, there are many foods for persons with difficulty in food Soft sushi “Sof-meat sushi” that looks like real sushi but fishes are grinded and then in-taking and swallowing such as foods softened re-molded Hayashikane Sangyo and easy to eat by adding enzyme, etc. to ordinary foods, which drew visitors' attention. The typical examples were sushi, Hamburg steak, broiling salmon and mackerel pike with salt etc. that were processed so as to be crushed easily by the tongue and the jaw. Their appearances were, however, almost the same as the ordinal foods. Even if you prepare an ordinal Hamburg steak for those who like it very much, and if they have difficulty in food in-taking or swallowing, they cannot eat it. Then, if you grind and make it in paste, they would not feel like eating it. However, if you can make the external appearance similar with an ordinary one, they Sterilized liquid food bag that firstly launched would accept it. Regarding foods for persons in the world market with the difficulty, promising products in future would be the ones not only easy to eat, but also given a good attention to external appearance(,which is not different from ordinal one's). Japan, which is an advanced aging society, possesses various high-ranked technologies of the world in this field. The foods mentioned above have a good potentiality for exporting or technology transfer in future.

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"Medi-Care Foods Expo" provides opportunities of exchanges among those working in medical treatment and nursing care spots, those from the academic society and related bodies and those from businesses. This is another strength of the exhibition.

Exhibition companies (food makers)

Commodity exhibition Business talk Collection of related information/ Information gatherings of competition Exchanges between companies and medical treatment and nursing spots Academic society and related bodies Medi-Care Foods Expo Seminar

Voices/feedback from New business medical treatment and Collection of Collection of flow nursing spots information/ information and Business talk business talk

Medical treatment and Retailers/Distributors nursing spots

The followings are exhibition manufacturers and foods that especially attract attention in this exhibition.

Fujimitsu Corporation: Fish's emulsification ground sweet jelly, patty, and ice cream. They do not have fish's smell, and are easy for those who do not like fish to eat.

Chateraise: Cakes and muffins that suppress the glucidic by using the maltitol. The blood sugar level does not go up easily. Pudding controlling blood pressure Chateraise 78

KITII CO.,LTD.: "Vinetta" that tenderizes meat by grape. Saraya: "Toromi Meijin (Food thickener expert)" that makes liquid thickened. "Resalt" that gives saltiness with a half amount of general salinity.

NEPUREE CORPORATION: Nepuree that makes vegetables and fruits in puree without breaking the cell by adding high temperature heat-treatment and centrifuge processing.

Food thickener “Toromi meijin” Saraya Brunner Co.: Cutter for raw material. It enables a cooking process to be shorter by doing a pre-processing before putting materials in the food processor.

Shidax Corporation: They provide purees without any additive for hospitals and nursing care facilities for aging people by making the best use of materials and keeping raw materials’ colors. Kinds of vegetables used are burdock, tomato, and komatsuna, etc.

Sankyu Foods Ltd.: "YAWARAKA GOZEN" Softened meals set (Softened meals set). It looks like a Japanese “YAWARAKA GOZEN” restaurant’s box lunch, selecting and setting up soft Sankyu Foods Ltd. food materials from ordinal meals.

Hashiya: "Yawaraka Yasai" (Softened vegetable) that is softened vegetable like jelly by the "Freeze Impregnation Method (patent technology)". The vegetable that is softened by cutting fibers with enzyme and easy to eat once after frozen. The color, shape, smell, and nutrition of the material remain as it is. Main ones are root vegetables such as lotus roots, etc. Meals for persons with difficulty in food-intaking/swallowing had been mainly liquid diet, carving food, jelly food, and food made in the mixer, etc. They were developed in the hope that more the delicious foods should be provided for the persons.

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Re-molded codfish Re-molded dish “Soft cod” BEST CO., LTD “Soft scallop” BEST CO., LTD

BEST CO., LTD: "Soft scallop", "Soft salmon", "Soft cod", and "Soft mackerel pike". They are all re-molded like cutting fish and frozen in pack individually once after they are minced. Fishes used are all popular ones. They can be crushed by the gum, cannot scattered in the mouth so that they can go through the throat smoothly. It can supply them to 20% dwellers for the case of 100 dwellers' nursing home. The products aim to avoid the gastric fistula and have aging people move their mouth as much as possible. There is also a small individual pack available for sales for persons in home nursing care.

Hayashikane Sangyo Co.,Ltd.: Cooking material "Sof-meat" that helps re-mold minced meat and fish to Hamburg and sushi by or frying. They look ordinary dishes, providing easy chewing. There are many products available, using salmon, cod, and pork, etc.

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Re-molded fish and meat “Sof-meat” Hayashikane Sangyo Re-molded salmon “Sof-meat salmon” Hayashikane Sangyo

Re-molded beef “Sof-meat ” Re-molded beef “Sof-meat Hayashikane Sangyo YAKINIKU” Hayashikane Sangyo

Re-molded pork “Sof-meat hamburger” Drink that supply iron Hayashikane Sangyo “Tetsu-Tori-Meijin” Hayashikane Sangyo

Kokumotsu Saikan: "Aibio-7" that is a drink made from sesame and soybean flour. The aim of the product is to provide nutritional balance and replenish calorie for those who have difficulty in food-intaking and/or cannot have sufficient meal. It is also effective in improving physical condition of a healthy person.

NittoBest Corporation: "Yawaraka Osozai (Softened daily dishes). "This is for persons in home nursing care. "Softened vegetable diet Hospita-gourmet" which is food materials softened with the pressure cooker. They are not only softened, but also being put special treatment (in case of

81 squid, it is put grilled color with burner).

Meal set for home medical care NittoBest Corporation Softened chicken “Softened vegetable diet Hospita-gourmet” NittoBest Corporation

Marukoshi: Cooking system. They had been cooking at on-sites in day services, group homes and hospitals. In order to save the labor cost, they are now offering cooked foods chilled in quick cooling. The quality keeps for one week. Two persons handled 30 people's meals, but now one person manages them with a steady taste.

Nichirei Corporation: "Calorie Navi" energy adjusted foods. Daily dishes with 3.3g or less in salinity and with 20 kilocalories or below in calorie. They keep the taste although salinity is low. "Calorie Navi 240 series", frozen daily dishes with 240 kilocalories.

Kamuwel Ltd.: "Kamuwel", meals that can be crushed with the above jaw and tongue, and that become available with boiling water quickly. They look conventional foods in shape and give a fun visually as well. There are deeply boiled dishes, of prawn and white meat fish, spinach and egg in thick starchy sauce, pickled radish, boiled taro and carrot, and boiled burdock, etc.

Nippon Ham Health Creation Co., Ltd.: Food thickener "Nomu Meal" with the materials of dextrin and Xanthane gum. It makes drinks and foods thickened like potage, syrup and jam, and makes them easy to swallow. Calorie control food “Calorie Navi 320 series” Nichirei Asahimatsu Food Corporation: Frozen foods for mail order "Yawaraka 100 vegetables (Softened 100 vegetables)." The frozen cooked food "Cutting gourmet" is daily dishes and nursing meals with materials cut in pieces and softened.

Takaki bakery: "Raku-Raku bread" that is soaked in syrup and is made damp. A main feature is for aging people to be able to eat by scooping up with a spoon.

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Soften bread “Raku-raku bread” that can be The manufacturer who produce healthy crused by tonguem, Takagi bakery foods under consignment contract Sunsho Pharmaceutical Co.,Ltd.

(2) Health Ingredients Japan 2009 Many companies exhibited foods that were under new development. It was found that such big companies as Yakult Co., Ltd. that is famous in the drink product category and Snow Brand Milk Products Co., Ltd. etc. have been devoting their energies to health supplementary foods such as supplement etc., which have different images from the products in which they have engaged in the past. The Yakult makes efforts to the function material for food containing "Phosphatidylserine" which is made from the soybean. This material has brought about a good effect for aging people who suffer from mild memory impairment. Because it is liquid, you can easily take it only by mixing with food etc. The Snow Brand exhibited a material for beauty care named as "Milk Ceramide". This presents a milk flavor by dispersing in the water, and provides skin moisture effect without an organic solvent. The company was appealing that it can provide an anti-aging effect for aging people's skin. In terms of the “Iron and Lactoferrin" related products, "Iron" is given a priority in many cases. This can provide ameliorating effects for adult female's anemia and iron deficiency, and it has such features, when being taken, that it does not give an iron taste, Green organic soup (green vegetable juice) that it does not cause a stormy stomach even by an excessive in-take, and that it provides good thermostable, etc. This is taken by being mixed with milk-based drink and/or processed food. It has a feature of not causing a stormy stomach for aging people with weakened internal organs 83 as well. "Hoeipepuchido" abundantly contains essential amino and provides quick absorption effect, which are the characteristics of protein Hoei. The recovery effect from the state of the disuse muscle atrophy can be expected. This is a breakthrough ingredient for aging people as well as for nursing meals for the muscle atrophy. Although this was not an organic exhibition, there were many organic foods exhibited there. It could indicate that an organic age is approaching to Japan.

"Whey-peptide" Looking about the exhibition overall, there were an excessive number of such product types as "powder", "liquid", and "supplement" exhibited. I felt resistant by all means when thinking of taking "powder" and/or "supplement", even though they are all healthful. I would like to see that food itself with healthful ingredients would become available more and more.

Material coping with the metabolic syndrome "Mulberry Leaf Powder" Toyotama Healthy Food Co., Ltd.

What interested me most was "Mulberry Leaf Powder" of Toyotama Healthy Food Co., Ltd.: It is a material coping with the metabolic syndrome, and it can alienate the working of the glycolytic enzyme and control a glucose level after meal. Moreover, it contains abundant mineral elements with high calcium and iron as well as abundant zinc and magnesium. I did not feel resistant in taking it despite of power, because, first of all, I could take it like drinking tea. Since the powder is green in color, there is no difference in feeling as drinking . With

84 relation to the effect for the metabolic syndrome, it contributes to a decrease by 75% or more in the waist and by 80% or more in weight. This indicates that it could lead to the prevention of lifestyle-related diseases. Concerning the glucose, a staff of the exhibition booth of the company mentioned that the diabetic improved only by continuing drinking this. I was interested in the "Source of the brown rice” from MURASE Co., Ltd. This is because the rice cannot be separated from the Japanese gastronomic culture, in other words, Japan is equal to rice. Most Japanese eats rice, and if they "Brown rice” MURASE Co., Ltd. cannot eat rice as usual when being aged, they should feel shocked. Like the above, rice is essential for the Japanese meal. Conversely, if elderly people can eat rice, it can make them feel happy. Because of this, it can bring about the nutrient effect further, which shows that rice is an excellent product. You can take various kinds of nutrition from the "Source of the brown rice" by mixing rice with the product. Moreover, there is no incompatibility between rice and the product. You can cook it just like ordinary rice. It can have various effects A lot of nutrients that preserve beauty and health such as vitamin C, A, calcium, iron, on such as "Metabolic syndrome", "Skin roughness", and polyphenol are contained. "Constipation", "Osteoporosis", and "Menopausal symptoms". In addition, it has effects on the prevention of lifestyle-related diseases such as "Diabetic", "Hyperlipemia", "High blood pressure", etc. as well as the prevention of Alzheimer. It was explained that the combination with the brown rice would suppress meal to low fat, which works as a preventive measure and improvement like the above. Overall, there were an excessively number of supplement-type products, while big companies such as Yakult, Snow Brand, etc. produce a lot of powder-type ones. Though how to make use of them afterwards varied by each company and manufacturer, the products of Toyotama Healthy Food Co., Ltd and MURASE Co., Ltd. were attractive as they placed emphasis on the "Gastronomic culture"

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Diet bread that cut off 80 % of sugar content powder capsule “Ninniku lectio” “Pan de smart” The TORIGOE Co.,Ltd. The TORIGOE Co.,Ltd.

I feel personally that the mental power is very important for aging people to keep continuously healthy. It should be big pleasure for aging people to be able to spend their lives similar to the ones when they were young and to take a same meal with their family. Considering these points, I think that products converted from "Medicine"-like powdery usage to "Food"-like powdery usage should be attractive to aging people and their family.

Anti-aging material “OXXYNEA” The manufacturer who produce healthy foods SCETI K.K under consignment contract BIHOLON

Ranked No.1 in Japan for obtaining Food for Specified Health Uses Toyo Shinyaku Co.,Ltd. 86

X. Japan's Imports and Exports of Food for aging people No food for aging people is imported in Japan. Few companies are exporting food for aging people now, too. However, there are Japanese companies that have started the research and development of food for aging people for the Chinese in cooperation with academic society in China, and there are Japanese companies emerging that have started selling functional foods in China in tie-up with Chinese food companies.

(1) Research and Development of Food for aging people in Asia Markets Forica Foods Co., Ltd (the headquarters is located in Niigata Prefecture) that is a professional manufacturer of foods for aging people are producing and selling various types of foods for aging people such as liquid diet, therapeutic diet, foods for persons with difficulty in chewing and swallowing, and nursing meal etc. The company has recently received references about the research and development of food for aging people from China, Singapore, and South . It has recently started joint research on nursing meals and foods for persons with difficulty in swallowing and chewing for the Chinese together with the Niigata University Graduate School of Medical and Dental Sciences in cooperation with the Chinese Nutrition Society. This company has also plans to start discussing with Singapore and shortly.

(2) Exports of Functional Food to China Biomic Co. that is a microorganism related company located in Yamanashi Prefecture concluded a contract to manufacture a functional food element, "PQQ, Pyrrolo-Quinoline Quinone" with a Chinese pharmaceutical manufacturer called "Tokoshige Bio-Chemical Company", which is located in Jiangsu province and producing amino acids. PQQ is an element that is assumed to suppress the aging of the brain cell. The Tokoshige Bio-Chemical Company supplies mushroom, which is the raw material, to the Biomic Co., and it incubates the material, extracts the element from the incubated microorganism, and delivers it in a form of capsule to the Tokoshige Bio-Chemical Company. The company expects to sell assumingly at the sales price of about 1000 Chinese yuan a case (15,000 or less in Japanese yen) to the upper class of Shanghai and Hong Kong. The Tokoshige Bio-Chemical Company decided to make agreement with the Biomic Co. in the production contract under a judgment that the product can claim "Made in Japan", thereby establishing a brand power. While making use of its incubation techniques, the Biomic Co. contemplates expanding its business to Asian markets by pursuing business alliance with Asian countries' manufacturers that would like to have a labeling of "Made in Japan".

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XI. Advices to Thailand The following approaches are recommendable for Thailand to enter the Japanese market of foods for aging people.

1. To supply raw materials to Japanese food manufacturers for aging people. To supply raw materials that Thailand is good at producing to Japanese food manufacturers for aging people is recommendable. They include chicken, fruits, and marine products such as prawn and minced fish, etc., for instance. In this case, it is critical to appeal that the quality of agricultural products and marine products of Thailand is excellent and safe as raw materials.

2. To pursue joint research with Japanese public research organization and/or private research laboratories. It should be suggested to develop foods for aging people by using raw materials of Thailand in cooperation with Japanese public research organization and/or private research laboratories. In fact, some Japanese food manufacturers are proceeding with projects to conduct joint study with Chinese manufactures, and produce in China and export foods for aging people to Japan.

3. Food for Specified Health Uses and functional foods The "Food for Specified Health Uses" and functional foods are widely used by not only aging people, but general consumers as well. Especially, the Food for Specified Health Uses should be appealing to consumers because it can label its effect-efficacy. It is recommendable to obtain the permission of the "Food for Specified Health Uses" by using raw materials of Thailand in cooperation with Japanese manufacturers and/or laboratory organization, while it is costly and time consuming.

4. To introduce production techniques of foods for aging people from Japan Japanese production techniques of foods for aging people are in a world class due to Japan being the most advanced aging society in the world. It should be considered to introduce production techniques from Japan, produce foods for aging people by using raw materials of Thailand, and then to export them to Japan or sell them within Thailand.

5. To prepare for the coming aging society in Thailand. It is not a far future so that Thailand becomes an aging society like Japan. Besides considering entering the Japanese market, It should be considered now to be prepared for the coming aging society by studying current Japanese food market for aging people.

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APPENDIX-1. Popular foods for aging people and their prices in the Japanese retail market

1. Food for Specified Health Uses

Product Yogurt made from soybean milk defe 210g Kichinto chitosan biscuit Healthya Ryokutya Bansoreicha

Manufacturer Yakult Honsha Kewpie Nisshin Oillio Kao Corporation YAKULT HONSHA CO.,LTD. Yogurt controlling cholesterol in Mayonnaise controlling Biscuit controlling cholesterol Tea for controlling absorption Effect Tea for easy digestion of fat the blood cholesterol in the blood in the blood of sugar Retail price 98 JPY 398 JPY 980 JPY 185JPY 178JPY

Product Cholescare chitosan green Cholestemine Kenja no Shokutaku (Dining Mainichi Hone care MBP POsCAM vegetable juice table for wise man) OTSUKA Manufacturer Taisho Pharmaceutical Yakult Honsha Biin Sutaku Snow EZAKI GLICO CO.,LTD. PHARMACEUTICAL Blue soup controlling the Beverage controlling Powder for being mixed with Chewing gum that makes teeth Effect absorption of cholesterol in the food and drink to suppress Beverage good for bone care blood cholesterol in the blood cholesterol in the blood strong and healthy Retail price 2,940 JPY 2,950 JPY 1,890 JPY 98JPY 715JPY

Product Xylitol gum Powdered Green Tea Jinwari kaoru attaka soup FIBE-MINI Hone Genki OTSUKA Manufacturer Lotte BOMBYX Medicine NIPPON FLOUR MILLS PHARMACEUTICAL Mizkan Group Corporation CO.,LTD. Effect Chewing gum that makes teeth Green tea that lowers the level Soup that lowers the level of Beverage that tunes up Natto good for bone strong and healthy of sugar in the blood sugar in the blood stomach condition with fiber

Retail price 120 JPY 680 JPY 2,680 JPY 98JPY 60JPY

Product CALPIS lactic acid ameal S 120 Puretio GABA Power of soybean protein Black Oolong tea Kenko Sarara

Manufacturer CALPIS Yakult Honsha Kobayashi Pharmaceutical Suntory Holdings Limited Ajinomoto Corporation

Lactic acid bacteria beverage Lactic acid bacteria beverage Tablet that decreases neutral Effect that prevents the rise in blood that prevents the rise in blood fat Tea controlling fat Oil controlling cholesterol pressure pressure

Retail price 500JPY/1000ml 120 JPY 1,575 JPY 140JPY 378JPY

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Product Sofuru Joa Bifiene Meiji Bulgarian yogurt Bifidus Plain Yogurt Manufacturer Yakult Honsha Yakult Honsha YAKULT HONSHA Meiji Dairies Corporation MORINAGA MILK CO.,LTD. INDUSTRY CO., LTD. Lactic acid bacteria beverage Lactic acid bacteria beverage Yogurt that tunes up stomach Yogurt that tunes up stomach Yogurt that tunes up stomach Effect condition that tunes up stomach that tunes up stomach condition condition condition condition Retail price 94 JPY 90JPY 100JPY 250JPY 210JPY

Takanashi yogurt Onakae Product Healthy Resset PILKUL Pure Select Saralia KEN-CHA-Oh GG! Takanashi Milk Products Manufacturer Nisshin OilliO NISSIN YORK Co.,ltd. Ajinomoto Calpis co.ltd. Lactic acid bacteria beverage Yogurt that tunes up stomach Mayonnaise controlling Effect Oil for easy digestion that tunes up stomach Tea decreasing Blood pressure condition cholesterol in the blood condition Retail price 574JPY 115JPY 95JPY 322JPY 122JPY

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Product Choleste Block Miki Glucoade K Gluco Design Fermented black beans extract Manufacturer Kyowa Hakko Miki Corporation Nissin Falma Nippon Supplement, Inc. Effect Controlling cholesterol For easy digestion of sugar For easy digestion of sugar For easy digestion of sugar Retail price 2,300JPY 4,275JPY 3,800JPY 4,620JPY

2. Food for Special Dietary Uses

Menu for easy eating series Calorie Navi 320 series Easy eating series Uni cut calorie gourmet series Product Boiled red fish and root Easy spoon Hamburg with Japanese Cream stew of turnip potato European curry set vegetable seasoning set

Manufacturer Kewpie Meiji Dairies Corporation Richell Corporation Nichirei Kewpie Division 2.Easy to crush by Energy adjustment diabetic Energy adjustment diabetic Effect Division 1.Easy to bite Soft, and easy to handle gums food food

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Retail price 228 JPY 168 JPY 580 JPY 1,000 JPY 900 JPY

PLC series Yasashiku Raku Care series Nutritious desert series Product Fluffy rice porridge Beef and potato boiled and Yume gohan1/25 Softened or egg-tofus. Azuki mousse seasoned

Manufacturer House Foods Meiji Dairies Corporation KAMEDA SEIKA Forica Foods Corporation Kissei Pharmaceutical

Division 3: Easy to crush by Division 3: Easy to crush by Division 3: Easy to crush by Special food for patients Special food for patients Effect tongue tongue tongue having trouble on kidney having trouble on kidney Retail price 157JPY 168 JPY 158 JPY 278JPY 199JPY

Menu for easy eating series Menu for easy eating series Product Jelly drink apple flavor Toromi fine

Manufacturer Kewpie Kewpie Division 4: Not necessary to Effect Food thickener bite.

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Retail price 138 JPY 368 JPY

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3.Health Supplementary Foods, Functional Foods

Taisho Product Black Oolong Tea Tsubu Tsubu Konnyaku Vegetable Soup Naishitoru 85 Glucosamine

Manufacturer OSK ORIHIRO OHTA OILMILL Taicho Pharmaceutical Kobayashi Pharmaceutical

Oolong tea that decreases Arum root for being mixed For controlling the rise of Effect Soup that can be easily eaten Good for forming the cartilage neutral fat with meal to suppress calorie neutral fat Retail price 598 JPY 168 JPY 335 JPY 2,520 JPY/30 days 2,380 JPY

Product Tsumetai pea soup Aqua Care Jelly Amino Care Jelly Rakuraku 90 days Egao-no-Kurosu Manufacturer Heinz AJINOMOTO AJINOMOTO DHC Egao Helping walking easily by Jelly beverage that replenishes Jelly beverage that replenishes Effect Soup that can be easily eaten replenishment of cartilage Decreasing body fat moisture and electrolyte amino acid components Retail price 158 JPY 132JPY 157JPY 5,400 JPY/90 days 1,680 JPY/1 month

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Jellied scallop broth with GLUTEN MEAT & Product Probio yogurt LG2 See Through Right Hankel Aojiru cream sauce LINKETTS

Manufacturer Maruhachi Muramatsu Meiji Dairies Corporation SAN-IKU FOODS Miona FANCL

Softened side dish that can be Yogurt that tunes up stomach Botanical ingredient of Effect Microorganism dieting Green vegetable drink eaten easily condition substitution of meat 9,870 JPY/1 month (150 Retail price 157JPY 126JPY 350 JPY, 325 JPY 2,835JPY tablets)

Product Oishiku Vitamin muscat jelly Kiwami-no-Aojiru Hououjun Lakanto S Kira Kira Genki & Manufacturer House Foods Suntory Wellness Zenkoku Tsuhan Saraya Co., Ltd. Kewpie Corporation

Replenishing vegetable fibers Replenishing hyaluronic acid Effect Jelly that replenishes vitamin for those who fall short of Low calorie sweetener Salad dressing 50% calorie off with skin and joints vegetable in-taking 3,780 JPY/30 packs, postage Retail price 84JPY 1,200Yen (trial price) 750JPY 358JPY 350 JPY

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Product Meta Cut Remake Ornithine Kyowa Hakkou Bio Manufacturer Kaigen, Inc.

For controlling the rise of This helps waking up Effect neutral fat refreshingly in the morning Retail price 9,450JPY 1,500 JPY

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APPENDIX-2. The Manufacturers of the Food for Aging People Manufacturer Tel Product Efficacy Note J-Oil Mills 03-5148-7100 Rama Proactive Margarine controlling cholesterol in the blood Food for Specified Health Uses ORIHIRO 072-364-7511 Tsubu Tsubu Konnyaku Arum root for being mixed with meal to suppress calorie Healthy and functional food OSK 088-882-2645 Black Oolong Tea Oolong tea that decreases neutral fat Healthy and functional food Healthy Sarara, Pure Select SARARIA Oil controlling cholesterol in the blood Food for Specified Health Uses AJINOMOTO 03-5250-8111 Aqua Care Jelly Jelly beverage that replenishes moisture and electrolyte Healthy and functional food Amino Care Jelly Jelly beverage that replenishes amino acid Healthy and functional food EZAKI GLICO 06-6477-8351 poscam Chewing gum that makes teeth strong and healthy Food for Specified Health Uses OHTA OILMILL 0564-51-9521 Vegetable Soup Soup that can be easily eaten FIBE-MINI Beverage that tunes up stomach condition Food for Specified Health Uses OTSUKA 03-6717-1400 Kenja no Shokutaku (Dining table for Powder for being mixed with food and drink to suppress PHARMACEUTICAL Food for Specified Health Uses wise man) cholesterol in the blood Healthya Green Tea Green tea controlling the rise of neutral fat Food for Specified Health Uses Mayonnaise that prevents the rise of neutral fat in the blood Kao 03-3660-7111 Econa mayonnaise type Food for Specified Health Uses and fat from puttig on. Econa Healthy & Healthy Cooking Oil Oil controlling the absorption of cholesterol in the blood Food for Specified Health Uses KAMEDA SEIKA 025-382-2111 Fluffy rice porridge RIce gruel easy to bite and swallow Food for Special Usage Lactic acid bacteria beverage that prevents the rise of blood CALPIS lactic acid ameal S 120 Food for Specified Health Uses pressure CALPIS 03-5721-3111 Green tea and oolong tea that lowers the level of sugar in the KEN-CHA-Oh Food for Specified Health Uses blood Kissei Pharmaceutical 0263-25-9081 YUME series Protein adjustment food for persons with kidney disease Food for Special Usage Cadbury Japan 03-5487-5670 Whiteen Chewing gum that makes teeth strong and healthy Food for Specified Health Uses defe Margarine controlling cholesterol in the blood Food for Specified Health Uses Kewpie 03-3486-3331 Menu for easy eating series Meal easy to bite and swallow Food for Special Usage Uni cut calorie gourmet series Energy adjustment diabetic food Food for Special Usage Kyowa Hakko Kirin 03-3282-0007 Choleste Block Tablet controlling the absorption of cholesterol in the blood Healthy and functional food Kobayashi Naishitoru Medicine controlling the rise of neutral fat Medical supplies 06-6222-0897 Pharmaceutical Power of soybean protein Tablet that decreases neutral fat Food for Specified Health Uses SAN-IKU FOODS 0438-62-2921 GLUTEN MEAT, LINKETTS Botanical ingredient of substitution of meat

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Powder for being mixed with food and drink to lower the level MIKI Corporation 06-6345-6411 Miki Glucoade K Food for Specified Health Uses of sugar in the blood Japanese restaurant’s box lunch, selecting and setting up soft Sankyu Foods Ltd. 06-6615-3960 YAWARAKA GOZEN http://www.e-sankyu.co.jp/ food materials from ordinal meals Suntory 06-6346-1131 The Black Oolong Tea Oolong tea controlling the rise of neutral fat Food for Specified Health Uses Cholescare chitosan green vegetable Taisho Pharmaceutical 03-3985-1111 Blue soup controlling the absorption of cholesterol in the blood Food for Specified Health Uses juice Takanashi milk products 045-361-1141 Onakae GG! Yogurt that tunes up stomach condition Food for Specified Health Uses Nichirei 03-3248-2101 Calorie Navi 320 series Energy adjustment diabetic food Food for Special Usage Healthy Resset Oil controlling the rise of neutral fat Food for Specified Health Uses Nisshin OilliO 03-3206-5005 Kichinto chitosan biscuit Biscuit controlling cholesterol in the blood Food for Specified Health Uses NISSIN PHARMA 03-5282-6500 Gluco Design Soup and capsule to make suger absorption calm Food for Specified Health Uses NIPPON FLOUR 03-3350-2311 Jinwari kaoru attaka soup Soup that lowers the level of sugar in the blood Food for Specified Health Uses MILLS Heinz 03-5687-7511 Tsumetai soup Soup that can be easily eaten Desert easy to bite and swallow and energy adjustment diabetic Yasashiku Raku Care series Food for Special Usage House Foods 03-3264-1231 food Oishiku Vitamin Jelly that replenishes vitamin Healthy and functional food Foricafoods Corporation 025-794-2211 PLC series Protein adjustment food for persons with kidney disease Food for Special Usage BOMBYX Medicine 06-6947-1522 Powdered Green Tea Green tea that lowers the level of sugar in the blood Food for Specified Health Uses Mizkan 03-3552-1321 Hone Genki Natto that promotes calcium to turn to the bone Food for Specified Health Uses Easy eating series Meal easy to bite and swallow Food for Special Usage Meiji Dairies Nutritious desert series Desert easy to bite and swallow Food for Special Usage 03-5653-0300 Corporation Probio yogurt LG21, Meiji Bulgaria Yogurt that tunes up stomach condition Healthy and functional food yogurt MORINAGA MILK 03-3798-0111 Bihidasu plane yogurt Yogurt that tunes up stomach condition Food for Specified Health Uses INDUSTRY Joa, Bifiene Lactic acid bacteria beverage that tunes up stomach condition Food for Specified Health Uses Sofuru Yogurt that tunes up stomach condition Food for Specified Health Uses BAN-SO-REI-CHA Guava Tea that makes sugar absorption calm Food for Specified Health Uses Yakult Honsha 03-3574-8960 Cholestemine Beverage controlling cholesterol in the blood Food for Specified Health Uses Yogurt made from soybean milk Yogurt controlling cholesterol in the blood Food for Specified Health Uses Lactic acid bacteria beverage that prevents the rise of blood Pretio GABA Food for Specified Health Uses pressure Xylitol gum Chewing gum that makes teeth strong and healthy Food for Specified Health Uses Lotte 03-5388-5604 Xylitol tablet Tablet that makes teeth strong and healthy Food for Specified Health Uses

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APPENDIX-3 Foods for aging people / Companies and Associations

Company name TEL Prefecture URL

NISSIN HEALTHCARE FOOD SERVICE Co.,Ltd. 03-3287-3611 Tokyo http://www.nifs.co.jp/ AIM SERVICES Co., ltd. 03-3502-3721 Tokyo http://www.aimservices.co.jp/en/index.html SHIDAX CORPORATION 03-5784-8833 Tokyo http://www.shidax.co.jp/english/ Green House Co.,LTD. 03-5421-2255 Tokyo http://www.greenhouse.co.jp/en/ Manufacturer Seiyo Food-Compass Group,Inc. 03-3984-0281 Tokyo http://www.seiyofood.co.jp/e/index.html Fujisangyo Co.,Ltd. 03-5400-6111 Tokyo http://www.fuji-i.com/ Hospital Uokuni Sohonsha Co.,Ltd. 03-3545-2831 Osaka/Tokyo http://www.uokuni-s.co.jp/

MEFOS LTD. 03-3262-6262 Tokyo http://www.mefos.co.jp/

Nikkyo Create,Ltd. 03-5767-2370 Tokyo http://www.nikkyo-create.co.jp/

and nursing food nursing and Nikkokutrust 03-3211-4451 Tokyo http://www.nikkokutrust.com/ Ichifuji Food Service Corp. 06-6458-8801 Osaka http://ifsco-group.com/ NIPPON GENERAL FOOD 052-798-6111 Aichi http://www.ngf-penguin.co.jp/ Repast 03-3541-3721 Tokyo http://www.repast.co.jp/

Fuji Sangyo Co.,LTD. 03-3434-8901 Tokyo http://www.fujisg.co.jp/ Foricafoods Corporation 025-794-2211 Niigata http://www.foricafoods.co.jp/ Nisso Ltd. 011-785-0015 Hokkaido http://www.nisso.gr.jp/ LEOC JAPAN Co.,Ltd. 03-3574-5020 Tokyo http://www.leoc-j.com/english/index.html Nichiber Cock 06-6452-2135 Osaka http://www.nichibei.jp/ Shikoku Nisshin Food Products 0875-83-3311 Kagawa http://www.nissinreitou.co.jp/ Tokyo Catering Co.,Ltd. 03-5459-7811 Tokyo http://www.tokyo-catering.com/e_profile.html

Usage Special for Food TERAOKA YUKI JYOZO,INC. 084-934-8520 Hiroshima http://www.teraokake.jp/ Fundokin Shoyu 0972-63-2111 Oita http://www.fundokin.co.jp/ Fueki Shoyu 049-297-0041 Saitama http://www.kawagoe.com/kinbue/ Kewpie Corporation 03-3486-3331 Tokyo http://www.kewpie.co.jp/ Taisho Pharmaceutical Co., Ltd. 03-3985-1111 Tokyo http://www.taisho.co.jp/en/index.html Saraya Co.,Ltd. 06-6797-2525 Osaka http://www.saraya.com/english/ Naris Wings B&H Co.,Ltd. 06-6458-8465 Osaka http://www.naris.co.jp/corporation/group/wings.html Yamahisa 0879-82-0442 Kagawa http://www.yama-hisa.co.jp/

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Kikkoman 03-5521-5131 Tokyo http://www.kikkoman.co.jp/ KAMEDA SEIKA CO.,LTD. 025-382-2111 Niigata http://www.kamedaseika.co.jp/ Hakujuji Co.,ltd. 03-3987-6111 Tokyo http://www.hakujuji.co.jp/ AJINOMOTO CO.,LTD. 03-5250-8111 Tokyo http://www.ajinomoto.co.jp/ Nichirei Foods Inc. 03-3248-2122 Tokyo http://www.nichireifoods.co.jp/ Meiji Dietaries Corporation 03-5653-0339 Tokyo http://www.meinyu.co.jp/english/ Morinaga Milk Industry Co., Ltd. 03-3798-0111 Tokyo http://www.morinagamilk.co.jp/menu/english.html Otsuka Foods Co.,Ltd. 06-6943-7755 Osaka http://www.otsukafoods.co.jp/ ASADAAME CO.,LTD. 03-3252-5421 Tokyo http://www.asadaame.co.jp/

YAKULT HONSHA CO., LTD. 03-3574-8960 Tokyo http://www.yakult.co.jp/english/index.html YAKULT PHARMACEUTICAL INDUSTRY 03-5470-8911 Tokyo http://www.yakult.co.jp/ypi/en/index.html CO.,LTD. Lotte Co., Ltd. 03-5388-5617 Tokyo http://www.lotte.co.jp/ Meiji Dietaries Corporation 03-5653-0339 Tokyo http://www.meinyu.co.jp/english/ Kao Corporation 03-3660-7111 Tokyo http://www.kao.com/ Food for Specified Specified for Food Morinaga Milk Industry Co., Ltd. 03-3798-0111 Tokyo http://www.morinagamilk.co.jp/menu/english.html EZAKI GLICO CO.,LTD. 06-6477-8351 Osaka http://www.glico.co.jp/en/index.htm Otsuka Pharmaceutical Co.,Ltd. 03-6717-1400 Tokyo http://www.otsuka.co.jp/ CALPIS Co.,Ltd. 03-5721-3111 Tokyo http://www.calpis.co.jp/ Suntory Holdings Limited 06-6346-1131 Osaka/Tokyo http://www.suntory.co.jp/

H Taisho Pharmaceutical Co., Ltd. 03-3985-1111 Tokyo http://www.taisho.co.jp/en/index.html

ealth Uses ealth TOHO Co.,Ltd 078-845-2400 Hyogo http://www.to-ho.co.jp/ Kewpie Corporation 03-3486-3331 Tokyo http://www.kewpie.co.jp/ Nippon Meat Packers, Inc. 029-847-7813 Ibaraki http://www.nipponham.co.jp/

The Nisshin OilliO Group, Ltd. 045-453-6934 Kanagawa http://www.nisshin-oillio.com/ NICHIREI CORPORATION 03-3248-2122 Tokyo http://www.nichirei.co.jp/english/index.html CADBURY JAPAN LIMITED 03-5487-5670 Tokyo http://www.cadbury.jp/ Mizkan Co.,Ltd 0569-21-3331 Aichi http://www.mizkan.co.jp/ Takanashi Milk products co.ltd. 045-361-1141 Kanagawa http://www.takanashi-milk.co.jp/englishpage/index.html NISSIN YORK Co.,Ltd. 03-5695-6461 Tokyo http://www.nissinyork.co.jp/

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CALPIS Co.,Ltd. 03-5721-3111 Tokyo http://www.calpis.co.jp/

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NISSIN FOOD PRODUCTS CO., LTD. 03-3205-5111 Tokyo http://www.nissinfoods.co.jp/com/business/health.html

KYOWA HAKKO BIO CO., LTD. 03-3282-0974 Tokyo http://www.kyowahakko-bio.co.jp/english/ KANEKOYA 0598-26-9605 Mie http://www.e-kanekoya.com/ Yakult Health Foods Co.,Ltd. 0978-53-5311 Oita http://www.yakult-hf.co.jp/ UMI wellness 03-3548-9561 Tokyo http://umiwellness.com/

ASKUL Corporation 03-3522-7587 Tokyo http://www.askul.co.jp/

Watami Takushoku Co., Ltd. 0957-26-3107 Nagasaki http://www.watami-takushoku.co.jp/

De

Nikkyo Create,Ltd. 03-5767-2370 Tokyo http://www.nikkyo-create.co.jp/

livery

Silver Life co Ltd. 03-5379-7037 Tokyo http://www.magokoro-bento.com/

X-Vinn Co.,Ltd. 03-6303-7500 Tokyo http://www.takuhaicook123.jp/

Care Partner Co.,Ltd. 03-6718-9077 Tokyo http://www.care-partner.com/

Social Creation Inc. 06-6264-6667 OsakaTokyo http://www.nikoniko-kitchen.com/

Wholesaler

Healthy Food ltd. 042-581-1191 Tokyo http://www.healthy-food.co.jp/

Retailer

Ito-Yokado Co.,Ltd. 03-6238-2111 Tokyo http://www.itoyokado.co.jp/

MatsumotoKiyoshi Co.,Ltd. 047-344-5111 Chiba http://matsukiyo.co.jp/

CHIBAYAKU GROCERIES,inc 043-262-0089 Chiba http://www.yacs.jp/

Association and government office government and Association Japan Health Food & Nutrition Food Association 03-3268-3134 Tokyo http://www.jhnfa.org Japan Meal Replacement Association 03-3263-0957 Tokyo http://www.souzai.or.jp Japan Preventive Association of Life-style related 03-5521-2881 Tokyo http://www.seikatsusyukanbyo.com/ Disease Zenkenkyo 03-3814-6052 Tokyo http://www.zenkenkyo.com/ Japan Food Service for Patient Association 03-5298-4161 Tokyo http://www.j-mk.or.jp/ Japan Care Food Conference 03-5256-4801 Tokyo www.udf.jp Ministry of Health, Labour and Welfare 03-5253-1111 Tokyo http://www.mhlw.go.jp/english/index.html Ministry of Agriculture, Forestry and Fisheries 03-3502-8111 Tokyo http://www.maff.go.jp/e/index.html Consumer Affairs Agency, Government of Japan 03-3507-8800 Tokyo http://www.caa.go.jp/en/index.html

her Publis

Japan Medical Planning 03-3256-2861 Tokyo http://www.jmp.co.jp/

UBM Media Co.,Ltd. 03-5296-1011 Tokyo http://www.kenko-media.com/

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Develop Tokyo 03-5155-2033 http://www.ks-journal.jp/

Shokuhin Sangyo Shinbunsha 03-3238-7818 Tokyo http://www.foodchemicalnews.co.jp/

JAPAN FOOD JOURNAL CO.,LTD. 03-3432-5700 Tokyo http://news.nissyoku.co.jp/

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APPENDIX-4

Interview Report

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Date/Month/Year 14/10/2009 Company name / Japan Health Food & Nutrition Food Association group name Activities The research study, promotion and education of “Food with Health Claims” (“Food for Specified Health Uses” and “Food with Nutrient Function Claims”) and Food for Special Usage Establishment of the standard of health-assisted food, and Management of the labeling certification system of the JHFA mark and the GMP certification system of health-assisted food. Address 2-7-27,Ichigaya Sadohara-cho, Shinjuku-ku, Tokyo 191-0024 Telephone No. TEL 03-3268-3134 Fax No. FAX 03-3268-3136 URL http://www.jhnfa.org/ (Japanese only) Name(s) of person Toshiaki Kitsukawa in charge, Director, Health Food department Section, title E-mail address Contents of interview and information obtained by interview 1. Roles of Food for Special Usage corresponding to new needs “Food for Special Usage” refers to the one that is permitted to show the label indicating that it is suitable for growth and/or maintenance and recovery, etc. of health for babies, pregnant women and nursing mothers, and physically weak persons, etc. It plays a role to indicate special usage such as low protein with high calorie, and allergen removal, etc. that conventional foods cannot cover. Out of the total sales 32.86 billion yen of foods for physically weak persons, the low sodium (low salt) food is ranked highest at the 19 billion yen sales, followed by the low calorie food at 500 million yen. Looking at foods for physically weak persons by type, the sales of the food subject to the permission accounts for 34.87 billion yen, while that of individual evaluation type does for 520 million yen.

2. Transition of the labeling system related to special usage The Special Usage Food System was established in the Article 13 of the Food Sanitation Act enacted in 1947, indicating that "a person who tries to label special usage for babies, and physically weak people, etc. in terms of foods and additives for sales shall obtain the permission from the Minister of Health, Labour and Welfare ". Along with the economic growth, people's diet situation had been improving. On the other hand, the nutrient state that was biased to excessive energy and excessive salinity, etc. became gradually obvious. Given the situation, the labeling permission standard for use of pregnant women and nursing mothers, and for the low sodium soy sauce and the low sodium miso was enacted in 1963 and in 1972 respectively. In 1973, the labeling permission standard was enacted in terms of foods for physically weak people such as low sodium foods, low calorie foods, and low protein foods, etc. “Food for Specified Health Uses” that is able to label the health function of elements containing in the food was added as one classification of “Food for Special Usage” in 1991. “The Nutrition Labeling Standard” System was established in 1996, in which a company is able to label nutritional content in food arbitrarily according to the standard that the Minister of Health, Labour and Welfare provided. This system allows labeling nutrition highlights such as "Replenish-able", "An appropriate intake can be done", etc. Following it, “The Enriched Food System” where the government had given the permission for the 106 labeling until then was abolished, and it has been changed into a company's self-certification system. The environment surrounding “The Special Usage Food System” has been greatly changing: for instance, the noticeable progress of the medical science and the nutrition and the settlement of the nutrition labeling system as well as the advancement of the aging society and the increase of the medical expense along with the increase of the patients of lifestyle-related diseases. Given the situation, The Special Usage Food System was newly modified on April 1, 2009 along with the revision of the Ordinance for Enforcement of the Health Promotion Act. The center of the modification covers the nutrition management for home patients.

3. New establishment of total nutrition food Total nutrition food refers to “thick liquid food” for physically weak persons. It is a processed food to provide properties of the nutritional balance and liquidity, etc. consisting of such necessary energy as protein and calorie, etc. as a meal substitution and assistance for physically weak persons with difficulty in oral dietary-intake due to the mouth lesion, the obstruction, and the impaired consciousness, etc.

4. Consolidation of the single foods for physically weak persons, and Abolition of the combination foods for physically weak persons Out of the conventional single foods, high-protein foods, low calorie foods and low sodium foods were removed from the list subject to the permission under The Special Usage Food System. They are all able to label the nutrition highlights. Low protein foods, removing allergen food and lactose-free diet that cannot correspond to the labeling of nutrition highlights are continuously to be subject to the permission.

5. Change of foods for aging people It is necessary to manage weakened swallowing function depending on individual person's symptom. On the other hand, managing chewing function is easy because the hardness of food can be simply adjusted in a manufacturing facility. Therefore, out of conventional foods for aging people, foods for persons only with a masticating difficulty were removed from the list subject to the permission under “The Special Usage Food System”. All those who have a difficulty in the swallowing function are not necessarily aged people, but they may be younger and may have the trouble due to various diseases. This is why the name of food classification has been changed from "food for aging people" to "food for persons with a difficulty in the swallowing function”. Due to this change, after April 1, 2009, the re-application is required under “The Special Usage Food System”.

6. Notification system After April 1, 2009, the alteration report is necessary for lactose-free diet and low protein food under the new “Special Usage Food System”. Removing allergen food, powdered infant formula and food for aging people are required to make reapplication. To obtain the authorization, concerned food is required to be actually used in a medical institution and the function of the food has to be recognized by the institution.

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Date/Month/Year 05/11/2009 Company name / Yakult Pharmaceutical Industry Co., Ltd. group name Activities R & D (research and development) and sales of enzyme, oligosaccharide, and polyglutamic acid, etc. Address 4F Shinbashi-MCV Bldg,5-13-5 Shinbashi Minato-ku Tokyo 105-0004 Telephone No. 03-5470-8911 Fax No. 03-5470-8921 URL http://www.yakult.co/jp/ypi/ Name(s) of person Hidetoshi Kumagai in charge, Sales Manager Section, title Masayuki Hujii Sales Department Sales Section E-mail address [email protected] [email protected] Contents of interview and information obtained by interview 1. Company Overview The Yakult Pharmaceutical Industry Co., Ltd. have developed products as foods, yet not beyond pharmaceuticals, from all health aspects, which are expected to provide effective remedies for the impaired memory, and the stomach ulcer, etc. Since its main customers are business entities, not consumers, they decide how to use the products. The types of material are mainly powder and syrup, which are mixed with chocolate and/or tea, etc.

2.Products < Yakult PS-20L: Food functional material containing phosphatidyl serine (PS) > It is a functional food material made from soy lecithin by their unique manufacturing method. The soybean of the raw material is of non-GMO. There is no safety problem, which was verified in the general toxicity test and the genotoxicity assay. The PS helps improve the impaired memory of aged animal: After PS of 60 mg/kg a day was given to a rat with the impaired memory for 60 days, it could arrive at the goal in a water maze examination in a short time. Although the effectiveness in human being has not been verified yet, the PS can be expected to keep memory as well as to improve senile symptoms. 108

Thinking of a fact that aging people in general like sweets, a product made from the PS and chocolate mixed is in an experimental stage. The taste is the same as an ordinary chocolate, without any incompatibility.

< Yakult Fucoidan > It has been found since the latter half of the 1980's that the Helicobacter Pylori is the cause of the stomach ulcer. This company developed the fucoidan that helps decrease the Helicobacter Pylori and improves the stomach ulcer. It keeps the Helicobacter Pylori's balance well, and expectedly brings about the antiulcer action.

< Oligo Mate > This is a dairy product that can be called as the pronoun of Yakult. The Oligo Mate extraordinarily promotes the proliferation of bifidus bacteria that are a useful bacterium in intestines. It stabilizes extremely for heating and the acid when food is processed. The Oligo Mate facilitates the proliferation of bifidus bacteria in intestines, and helps expectedly improve feces condition and digestion, etc. It is used a lot as well for liquid diet. This is because many elderly people suffer from constipation, and take liquid diet. There is a side effect that it does not facilitate tooth decay as it does not grow the streptococcus mutans that is a cause of tooth decay. It is sweet with the appearances of honey syrup. The food that can take daily 5g or more of the galacto oligosaccharide can label the effect of the atractylodes lancea rhizome, etc. as a food for Specified Health Uses by obtaining the labeling permission from the Ministry of Health, Labour and Welfare.

3. Summary The Oligo Mate is the number one recommendation among foods for aging people of Yakult Pharmaceutical Industry Co., Ltd. Since this has been actually on the market already, the interviewee strongly recommended that it should be used for the product of Thailand. The sales of the oligosaccharide accounted for 7.8 billion yen in 2009 in the market of “Food for Specified Health Uses”, and have been increasing every year. It is likely to become an essential product along with the progressing aging society in future.

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Date/Month/Year 09/11/2009 Company name / Meiji Dairies Corporation group name Activities Manufacturing and sales of milk, milk products and nursery items for baby, etc. Manufacturing of liquid diet and nursing meal Address 1-2-10, Shinsuna, Koto-ku, Tokyo 136-8908 Telephone No. 03-5653-0339 Fax No. 03-5653-0548 URL http://www.meinyu.co.jp/care/ (Japanese only) Name(s) of person Chizuko Iizumi in charge, Director, Marketing group, 2nd section, Nutrition sales department Section, title Popularization chairperson, Japan Care Food Conference E-mail address [email protected] Contents of interview and information obtained by interview

1. Liquid diet The "Mei Balance" series, which is liquid diet, is the main brand in the Nutrition Care Department. The Ministry of Health, Labour and Welfare recognized the liquid diet as “Food for Special Usage” in April 2009. The liquid diet had been taken from the nose through the tube before. The Mei Balance is of enteral feeding through a small incision and a tube inserted in the abdomen into the stomach. There are two types of container, packing and film, of which the best-before date is for six months for both. The Mei Balance in the film type is in a container like a drip bag and delivered into the stomach through a tube. Main distribution channels of the product are hospitals and nursing facilities for aging people, and distributing routes covered by wholesale companies are segmented in detail. The appetite of hospitalized persons falls off in general. The Mei Balance is a food as a plus α to make up for the part that cannot be taken from a usual meal. The Mei Balance cannot label the effect and efficiency under the regulation of the "Pharmaceutical Affairs Act". However, the brand consists of several products in the line-up: one containing all nutrition, one with strengthened protein and one with strengthened vitamin, etc. The zinc prevents pressure sores caused by bedridden, and promotes the recovery of a wound. The Mei Balance makes use of milk protein. The products in the series have also differences in the energy design and the protein design with 1 kcal/1ml as a standard. Doctor can choose a type suitable for a patient condition from it, so that he or she can take necessary amount. The milk protein is good for the diabetes and the kidney, and makes the state of the bacillus improved by fermenting in the intestines.

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It has such flavors as vanilla, banana, custard, soup, chestnut, fruit, yogurt, and coffee, etc. Even though it does not go through the mouth, a patient can recognize its flavor when burping. That is why we put delicious flavors on the products. To reduce nurser's workload, the extract of the champignon (mushroom) with the effect of suppressing stool odor is mixed. The Mei Balance Mini is also available, which is of an oral version. It has such types as juice, jelly, powder (source of the mousse), and ice cream. It has also such flavors as yogurt, vanilla, chocolate and a variety of fruit tastes.

2. "Thickened" (TOROMI) The top selling products in the food market for aging people are "thickened" related ones (“Food thickener” and “Thickened food”). The purpose of making foods and drinks thickened prevents these people from bringing about the aspiration: they are those who have weakened swallowing power and/or weakened valve between the trachea and the gullet due to the age and/or the cerebrovascular disorder. The aspiration pneumonia is in the high rank of aging people causes of death. This company is manufacturing thickened foods. However, a main brand is called as "Toro Make SP" in powder, which is a food thickener. This makes foods flow slowly in the throat.

3. Background of entering the market of food for aging people and nursing meal Since we are a maker of milk and milk products, the manufacturing capability has been already in place with strengths of handling products in high quality and safety. In particular, we have a big market share in the infant formula, which is equivalent to food for aging people and nursing meal in terms of the basic development concepts concerning integrated nutrition and hygiene. This was the background for us to enter the market.

4. Wholesalers and retailers There are two types of wholesalers concerning main products handled: a pharmacy-affiliated and a food-affiliated. We use pharmacy-affiliated wholesalers for fluid diet foods and food-affiliated ones for "thickened"-related foods. In terms of retailing, mail order companies are major players.

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Date/Month/Year 18/11/2009 Company name / The Nisshin Oillio Group ,Ltd group name Activities Manufacturing, processing, and sales of various vegetable oils and fats, oil cake, and processing products Healthy foods business and Fine chemical business Address 1-23-1, Shinkawa, cyuo-ku, Tokyo 104-0033 Healthy Foods Dept 1-3,Chiwaka-cyo,Knagawa-ku,Yokohama-city,Kanagawa Telephone No. 03-3206-5025 Fax No. 045-453-6942(Healthy Foods Dept) URL http://www.nisshin-oillio.com/ Name(s) of person Hisashi Hikita in charge, Assistant Manager Development Group Healthy Foods Dept Section, title E-mail address [email protected] Contents of interview and information obtained by interview 1."Thickened" (TOROMI) The Nisshin Oilio Group focuses their efforts on swallowing-related products among thickened related products. “TOROMI UP” can make foods and drinks “thickened liquid” easily. It is very useful for such drinks as green tea that is easy to be choked with, and crumbling foods such as bread, etc. The drinks turned into “thickened liquid” enable aging people, who have weakened swallowing function, to be able to swallow it easily. As swallowing power falls off, the backflow of food is easy to occur. “Foods in thickened liquid” can prevent it happening. Since the level of swallowing power varies by person, the degree of “thickness” should be adjusted. The "TOROMI UP" has been found useful for 20 years or more, and has the reputation accordingly. "TOROMI PERFECT" has much less taste and smell compared to "TOROMI UP" so that you can enjoy taste of food itself more with "TOROMI PERFECT". Therefore, it has currently become a mainstream brand rather than "TOROMI UP". The sales for business use are higher than for consumers. The labeling of degree of “thickness” has been standardized in the Japan Care Food Conference. A weak point of "TOROMI PERFECT" is that the “thickness” is easy to remain in the mouth. Since an elderly person in need of nursing care cannot attentively brush teeth, there is a possibility that bacillus remains on teeth and enters the inside of body. Given this situation, a new brand called as "PERFECT JELLY" has come to the market. It includes a bit "thickness", but it does not remain in the mouth. However, because of less liquidity, it is 112 necessary to replenish moisture together with the product. Such a half-solid type has come to the market more and more in the aging society. It also helps shorten the nursing time.

2. Distribution The products mentioned above are all domestically made. There are medicines, which turn foods and drinks into “thickened liquid”, widely available in the Unite States such as "Sick & Easy", etc. In terms of non-medicine products with the same function, they are widespread in Japan incomparably to other countries. "TOROMI UP", "TOROMI SMILE", and "Sick & Easy" are in the market in South Korea. However, looking at the retail price, "TOROMI UP" for 3g/25 units is 650 Yen in Japan while about 2,500 yen in South Korea. A reason why they are not sold overseas might be that Japanese commodity could be imitated soon. In Japan, Ito Yoka-do is selling them at their storefront of "Safety Support Shop" and drug stores, etc.

3. Competitive situations There is one company under the “Japan Hospital Food Wholesaler Cooperation (ZEN BYOSHOKU)” in each prefecture. "Watanabe Syoji" in Kanagawa prefecture and "Healthy Food ltd." in Tokyo are famous as wholesalers selling to hospitals. Clinico Co., LTD., a subsidiary of MORINAGA MILK INDUSTRY CO., LTD., and Meiji Dairies Corporation, etc. are intensively selling "thick liquid diet".

4. Overall Nursing meal is developed for helping support following symptoms and/or needs, i.e., kidney disease, PEM (protein-energy malnutrition due to insufficient in-take of food caused by the aging), urinary infection, weakened chewing function, moisture replenishment, nutrition, and diabetic, etc.

5. Food for Specified Health Uses The jurisdiction of application for "Food for Specified Health Uses" has been transferred to the Consumer Affairs Agency since September1,2009. This agency takes charge of all "Food for Specified Health Uses"-related matters. It takes 1-2 years from application to acquire the certification of "Food for Specified Health Uses"

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Date/Month/Year 04/12/2009 Company name /group Japan Care Food Conference name Activities The purpose of this body is to establish standard of nursing food, provide related information and promote educational campaign, etc. for the industry, whereby to contribute to healthy development of the industry as well as to the maintenance and improvement of public health. Address 3rd floor, Showa kanda bldg., 10-2, Kanda higashi matsushita-cho, Chiyoda-ku, Tokyo 101-0042 Telephone No./Fax No. 03-5256-4801/03-5256-4805 URL http://www.udf.jp/ (Japanese only) Name(s) of person in Director charge, Section, title Toru Fujisaki E-mail address [email protected] Contents of interview and information obtained by interview 1. Status of Nursing Food Industry There is no clear definition in "nursing food". "Nursing food" is a name used for food, in case-by-case basis, of which physical properties such as of hardness and viscosity, etc. are specially treated. It mainly refers to food for those with weakened chewing function and swallowing. It also refers to "liquid diet" and/or "Food for Specified Health Uses" at times. "KAIGO SHOKUHIN" in Japanese is translated into a English word of "care food" or "nursing food". There is no public data available for the sales of nursing food. Some data developed in the private sector indicates that the market size of foods for weakened chewing and swallowing functions, and “thickened”-related foods could be 20 to 30 billion yen. The size of other foods including liquid diet and all food for physically weak persons such as diabetic, etc. reportedly amounts to 100 billion yen. The market of the nursing food industry has been growing annually by 10% or less with a 20% increase for the past three years. Out of the total market size, 80% goes to business bodies such as hospitals and other nursing facilities with frozen food, and the other 20% goes to the consumer market. The nursing food originally started circulating mainly in the consumer market, and then it has been penetrating more in the business sector. The growth rate in the consumer market is low. How to raise awareness is an issue.

2. Universal Design Food The nursing food began to circulate when the Nursing-Care Insurance System started in 2000 114 along with the increase of the aging population. Concerning the nursing food at that time, since manufacturers designed and made labeling individually, it was difficult for consumers to compare products. Then, this conference was established in 2002 with a purpose to develop a common standard to have consumers make easy selection. At first, the conference classified foods into four stages as a standard in terms of "Hardness" and "Viscosity" so that users can choose a product. A brand name called as "Universal Design Food" together with its logo mark and the classification is labeled to the package of which food is developed with a special attention to the easiness to eat. The conference is trying to promote such foods to spread widely. The "Universal Design Food" mark can be displayed for the food that is easy to eat (Jelly for instance), even if it is not food designed especially for nursing.

The "Universal Design Food" is classified into the following four stages depending on physical properties. How to select "Universal Design Food" (Classification Table) 3.Easy to 4.Not Classification 1.Easy to bite 2.Easy to crush crush by necessary to by gums tongue bite. Not easy to Cannot eat a Standard of power to eat a hard one Not easy to eat a Can eat sliced solid one bite and a big one stiff one and a and soft one easily, even if a bit big one small. Not easy to Not easy at Not easy to Standard of power to Can swallow swallow times to swallow normally. depending on swallow water swallow food and tea water and tea Rice ~ Soft Soft rice~Rice Rice rice gruel Rice gruel Rice in paste Standard of Boiled Strained stiffness Fish Grilled fish Boiled fish crumbed-fish white meat (examples (with thick fish of food starch sauce) menu) Soft teacup Egg Thick-baked Rolling egg with Scrambled egg egg without egg stock ingredient Stiffness Physical upper Sol: 1×104 Sol: 3×105 properties bound 5×105 5×104 standard value Gel: 2×104 Gel: 5×105 N/m2 115

Viscosity lower bound Sol: 1500 Sol: 1500 value mPa・s ※ "Sol" means a liquidity state with the liquid or the solid dispersed in the liquid. "Gel" means a jelly state after Sol loses liquidity. Source: Japan Nursing Food Conference

1. “Food thickener” By making foods and drinks thickened, they are easy to settle in the mouth and flow smoothly into the throat, which can cause less aspiration, accordingly. As a result, the aspiration pneumonia, etc. can be prevented. Crumbling food and chopped food mixed with thick starchy sauce, etc, can settle in the mouth and flow easily. In the past, potato starch was added to make liquid food thickened and easy to drink. There is one problem with potato starch: it does not make it thickened unless in high temperature. Many people claimed that the water part of rice gruel was not easy to swallow. Persons with weakened swallowing eat rice gruel well. Then, powdery product was developed which can adjust food and drink into thickened liquid only by mixing it. The conference has developed the labeling standard of thickened levels of the 4 stages, which is illustrated below:

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Date/Month/Year 07/12/2009 Company name / Healthy Food ltd. group name Activities Manufacturing and Wholesale (direct sale for hospital and nursing facilities) of food for medical and nursing facilities, and Mail order sales for home patients Address 1-34-3,Manganji, Hino, Tokyo 191-0024 Telephone No. 042-581-1191 Fax No. 042-581-2170 URL http://www.healthy-food.co.jp/ (Japanese only) Name(s) of person Takashi Kuroda in charge, Director, Marketing department, Sales headquarters Section, title E-mail address [email protected] Contents of interview and information obtained by interview

1. Company Overview The company runs the business of manufacturing foods for medical and nursing facilities, and wholesale to corporative bodies and mail order sales of the food to home patients. There are 50 wholesale-companies of therapeutic diet nationwide as the members under “The Japan Hospital Food Wholesaler Cooperation" located in Kanagawa prefecture, one company in each prefecture. Among them, this company is the number one for both in sales value and amount. Most of them are domestic sales, and the sales to "Intensive Care Home for aging people" and other elderly nursing facilities are accounting for 90% of the domestic sales. In the mail order category, the company enjoys the number one market share with a big gap from other companies' as well.

2. Market Size There are foods for chewing and swallowing support such as liquid food and “Thickened food”, etc., and supportive foods for pressure sores, etc. There is no clear boundary of foods for weakened chewing and swallowing support in relation to "foods for medical and nursing facilities”. The Japan Food Care Conference estimates the market size of foods for weakened chewing and swallowing, and

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“food-in-thickened-liquid” related products as 20 to 30 billion yen, and other foods including liquid diet and all foods for physically weak persons such as the diabetic, etc. as 100 billion yen. However, the above figure possibly covers only the sales of the companies under the Cooperation. If you include all companies’ other than the members of the Cooperation, the former could be 20 to 80 billion yen while the latter being 80 to 90 billion yen. The domestic market size of the mail order sales for therapeutic diet is 10 billion yen or less. Healthy Food ltd. has the number one share, followed by RS Co. located in Tochigi Prefecture with the sales of 1/4-1/5 of Healthy Food ltd. The market size of the liquid diet by kcal has not increased compared to the last year. This might be because only "liquid diet subject to the Pharmaceutical Affairs Act" (refer to below 4.) of which unit price is low has increased as the number of home patients is going up. There has been, on the other hand, no change of the amount of liquid diet used in hospitals due to the upper limitation of no. of beds.

3. Current Industrial Situation Food for aging people does not sell so much in retail stores. This is because of consumers' low awareness and difficulty of sufficient product line-up in retail stores. Most products selling in retail stores are of Q.P. Corporation. Because of the regulation of the "Pharmaceutical Affairs Act", disease names applicable to a food cannot be labeled. There are about 2,500 hospitals and elderly nursing facilities nationwide. Of the total hospitalized persons, 50% or more are aged 65 years old or above. Home patients will likely increase in future. The product adjusting “food thickener” is at times used for making “food mixed in the mixer” solid in hospitals and nursing facilities. It causes more time to prepare; because required degree of "thickness" varies by person, while all patients should be provided meals at the same timing. To cope with this situation, a complete “Thicken food” is often used.

4.Food and Medicine The Forica Foods Co., Ltd. developed "Thick liquid diet". Until then, “liquid” food was made by mixing in the mixer and ate together with milk etc. A thick liquid diet that is under the jurisdiction of the Consumer Affairs Agency is regarded as food, and one that is under the jurisdiction of the Ministry of Health, Labour and Welfare is regarded as medicine, called as "liquid diet subject to the Pharmaceutical Affairs". (Only Japan and South Korea position a thick liquid diet as medicine.) Nurses call a "medicine" type of “thick liquid diet" a nutritional medicine though the element is the same as one of a "food" type. For the liquid diet subject to the Pharmaceutical Affairs, consumers pay only 30% of the price.

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Date/Month/Year 17/10/2009 Company name / Elderly Taking Care Home “Toyokawa no Sato” group name Activities Taking-care facility for elderly Address 4-35-31, Toyokawa, Ibaragi, Osaka 567-0057 Telephone No. 072-643-0333 Fax No. 072-643-0367 URL http://oosaka.ekaigo.biz/ Name(s) of person Mr. Nishida in charge, General Manager Section, title E-mail address ------Contents of interview and information obtained by interview 1. Facility Overview An Intensive Care Home for aging people newly established four years ago. Seventy three (73) people are now living. Among them, the youngest person is 75 years old while the oldest being 99 years old. The number of staff accounts for approx.30. 2. Meal services * The meal services that are provided all within the facility are all outsourced to Narikoma Enterprises Co., an on-site cooking service contractor. It is a major company in the service industry, covering mainly Kansai and Chukyo areas. Nisshin Health Care Food Service Co., Ltd. is a famous company in Kanto. * Meals that Narikoma Enterprises Co. prepares at this facility in a day are as follows: Breakfast, lunch, and supper plus tea-time snack for 73 people for each, Meals for 20 people who come to the daycare service, and, Lunch for 30 staff. * Contents of meal: The menu in this facility is almost the same as the one for normal persons. No special one is not provided even for aging people, with only one dish less than those for the staff. However, chopped food, food made in the mixer, low salinity food, and rice gruel etc. are provided for some specific persons. * Meal fee per day: The meal fee given by the government is 1,380 yen a day. However, this is not enough for full meal service, which costs about 1,600 yen actually. The difference is paid by the facility. Since this is a public facility, the difference cannot be charged to the dwellers. Many private homes charge the difference. 3. Others * The admission cost per person of an Intensive Care Home for aging people is regulated by the "Act on Assurance of Medical Care for Elderly" and the "People Long-Term Care Insurance Act”. It is determined depending on dweller's incomes with the minimum fee of 40,000 yen and the maximum of 160,000 yen per month. * It is reported that there are fish food in a fish form without bones and canned food without tastes used as foods for aging people. When asking if this facility is using the above, they answered that the fish food is used and the canned food is not.

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Date/Month/Year 12/01/2010 Company name / group name Elderly Taking Care Home “Ryokuju no Sato” Activities Taking-care facility for elderly people Address 113 Inato, Ito, Shizuoka 414-0004 Telephone No. 0557-36-0777 Fax No. 0557-38-0220 URL ------Name(s) of person in charge, Mr. Yamamoto Section, title Director E-mail address ------Contents of interview and information obtained by interview 1. Facility Overview Private owned nursing care home for aging people, which is located at a seven minute walk from the JR Ito Station, with a maximum capacity of 59 people. The youngest dweller is 78 years old while the oldest being 92 years old. This is run by a private company, not an “Intensive Care Home for aging people”. Therefore, the admission money of 2-5 million yen in a lump sum is necessary. (The amount of money differs by the size of room, age, and necessary care level.) The monthly cost ranges from 200,000 to 400,000 yen/person (This also depends on person). 2. Meal services *Food materials and Cooking All the meals provided here are prepared and cooked by themselves in this facility. It does not employ any outside cooking specialty company. The cooks of the facility go out to market, greengrocery, fish store and supermarket, etc., and buy food materials every day. *Contents of meal: The dwellers of this facility are all aged and many of them have various troubles (for instance, those with weakened swallowing function, those who cannot eat by themselves, and those who have to refrain extremely from taking salinity, etc.). Therefore, appropriate meals are prepared for respective persons. The menu of meal is developed to meet properly to each person's health condition. Extremely speaking, a "hand-made" meal is prepared for each one. Because of the situation, the cost for cooking including ones for materials and labor may be higher compared to other similar facilities, according to the interviewee. *Meal fee per day: The meal fee per person a day differs greatly by person, ranging from about 1,500 yen to about 2,500 yen with 2,000 yen on average. 3. Others *According to the Interviewee, because of the location at Itoh, which is the center of the Izu area, various kinds of fishes are available with a relatively low cost. It helps manage the operation a lot. *It is reported that there are fish foods in a fish form without bones and canned food without tastes used as foods for aging people. We asked the interviewee if this facility use them. His answer was as follows: "We never use such foods by all means. I have heard that there are especially many imports. The meals prepared here are all hand-made." 4. Interviewer's impression Since "Toyokawa no sato" I visited last October is a public facility, no admission money in a lump sum is necessary. While this home is privately owned, the money is necessary, and the monthly fee is more expensive than that of "Toyokawa no sato". It is said that several hundred thousand aging people cannot currently enter such facilities in the whole Japan, and are standing by. Because the number of aging people will surely increase more and more in the future, I would think that the government, prefectural and city governments, etc. should positively develop such facilities that people can enter cheaply.

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Date/Month/Year 08/04/2010 Company name / Sankyu Shokuhin group name Activities Wholesaler of foods for industrial use. They are handling various type of foods for aging people.

Address 12th floor, ATC ITM bldg., 2-1-10, Nanko Kita, Suminoe-ku, Osaka 559-0034 Telephone No. 06-6615-3955 Fax No. 06-6615-3950 URL http://www.e-sankyu.co.jp/ (Japanese only) Name(s) of person Daisuke Ikoma in charge, 2nd Section, Sales Department, 2nd Business Division Section, title E-mail address [email protected] Contents of interview and information obtained by interview They are specialized in CHINMI (a kind of special foods) They export dressings to Europe and Thailand. They wholesale elderly people’s foods to aging people facilities. They are tied up with 400 food factories and let them produce foods that market requires.

According to them, big market of elderly people’s foods is hospital and elderly care facilities. However only 2 facilities out of 10 facilities need elderly people’s foods.

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Date/Month/Year 14/04/2010 Company name / Forika Foods Co. group name Activities Wholesaler of foods for industrial use. They are handling various type of foods for aging people. Address 286, Horinouchi, Uonuma, Niigata 949-7492 Telephone No. 025-794-2211 Fax No. 025-794-3225 URL http://www.foricafoods.co.jp/ (Japanese only) Name(s) of person Dr. Shigeru Beppu in charge, Director, Planning & Sales Division Section, title E-mail address [email protected] Contents of interview and information obtained by interview Activity: Production of nursing care foods, hospital foods, retort foods, frozen foods Main foods for elderly people: 1. PLC Series (Hospital foods) All foods indicate ingredients 2. FFK Series (Nursing care foods) Foods for elderly people who has difficulty to eat and drink 3. Rescue (Rescue foods) Foods for the people who rescue and/or be rescued 4. OKUNOS (for industrial use nursing foods) Based upon 30 years experience they are selling hospitals and elderly facilities all over Japan.

Research together with Niigata University They are doing research works together with Niigata University for nursing care foods and hospital foods. (Example of products)

Pork fillet Fish (mackerel) cooked cooked very soft soft with MISO

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