The well-known Estonian brewery, Saku Õlletehas (brewery), has heavily invested in exporting its products due to stagnant growth in the domestic market. After the collapse of its primary export market, Russia, the company has shifted its focus to new markets and added Malta, Romania, and Japan as new export destinations this year.

Saku Õlletehas primarily exports its products to countries around the Baltic Sea and Europe. For years, the company has exported its products to Iceland, Germany, Cyprus, Greece, Spain, Slovakia, the United Arab Emirates, and distant countries like China and Australia. The brewery’s main export markets are Poland, Germany, Spain, Finland, and Iceland.

This year, the brewery has added Malta, Romania, and Japan (with a population of 125 million) as new export destinations.

“Our cooperation with Japan began at last spring’s Foodex Japan 2023 fair. During the fair, we partnered with a Japanese retail chain with over 1,000 stores nationwide. Thanks to EIS, the Estonian Food Industry Association, the Estonian Chamber of Agriculture and Commerce, and the Estonian Chamber of Commerce and Industry. With their help, our company and other Estonian companies have been able to participate in international fairs and business visits,” described Saku’s export manager, Margus Masing, the start of the cooperation.

According to Masing, the Japanese partner liked the hoppy taste of Saku beers and the product packaging. The Japanese market is highly regulated, and entering the market takes a long time. “Entering the Japanese market requires more than just a good product. Quality, production processes, and supervision must meet their high standards to enter the market,” said Masing.

“We have exchanged information with the client on the most demanding production specifics, including bottling temperatures. We have also conducted several product tastings, sent packaging samples, etc. They are very thorough, ask many questions, and want to know everything in great detail. In the summer of 2023, representatives of the client also visited the brewery to ensure that our factory and production meet Japan’s high standards,” he noted.

Saku Brewery offers three products in Japan

According to the export manager, Saku’s long history alongside high-quality production speaks in favour of the brewery – beer has been continuously brewed in Saku since 1820. “We have received a lot of positive feedback on our products’ good quality and taste. We have also received good feedback on our packaging. However, our products’ success in foreign markets depends on the local pricing, taste preferences, and how the locals will accept our products. Although Japanese people tend to be loyal to well-known local brands, we hope Saku products will find their way into Japanese homes,” he added.

In Japan, the company’s products, Saku Original, Saku Gold, and Saku On Ice, will be available on store shelves. Despite the positive news about new markets, the brewery still faces many challenges in increasing export volumes. The significant rise in input prices is the biggest obstacle to the recovery of exports and finding new markets.

“At one point, the situation was such that inflation in Europe and elsewhere was 6-7%, while we had a record 20-25%. The rise in production costs due to extreme inflation has hindered competitiveness in existing markets and expansion into new export markets. If our prices were competitive with other major European producers, Saku would have significantly greater potential in terms of packaging and product quality,” said Masing.

In 2023, the company´s export sales reached 35 million litres. The brewery’s most popular export products are Saku Original, Karl Friedrich, Saku Gold, and Rock.

Are you interested in trading with Estonia? Enterprise Estonia is providing sourcing service for foreign enterprises. Contact Estonian export advisors or use our free e-consulting service to start trade with Estonia.