Q&A: How Shifting Consumer Preferences Give Gekkeikan Sake A Boost

Despite sake’s relatively small share of the overall alcohol market, the fermented rice beverage (often classified as a wine) is well positioned to leverage several trends for growth. We caught up with Mark Zheng-Garratt, vice president of sales & marketing for Gekkeikan Sake (USA) — a Comeback Brand winner in the 2025 Growth Brands— to learn more about what’s driving the brand’s success.

What industry trends are most impacting the brand right now?

One of the most significant trends impacting Gekkeikan and the sake industry as a whole is the broader shift occurring within the alcohol market. Historically strong categories in mature markets — such as sake in Japan and wine in France — are losing momentum, particularly among younger consumers.

These consumers, who are less connected to established brands, are increasingly seeking out more diverse and unique options. This trend appears to be global, with emerging markets showing growth in more “traditional” alcohol options, while mature markets are seeing a slowdown.

However, this shift presents a unique opportunity for sake, particularly in the U.S. The pandemic spurred a surge in consumers seeking new experiences, which led to an increased interest in exploring new flavors and categories. Coupled with a rising fascination with Asian cuisine and culture, including the growth of restaurants serving Japanese food, sake has successfully attracted consumers who are branching out from other alcoholic beverages in search of something new.

Additionally, the rise of the low-/no-alcohol category and a broader trend toward mindful and health-conscious drinking has worked in sake’s favor. Thanks to its natural composition — free from common allergens and additives — sake has become a go-to choice for health-conscious consumers.

What off-premise promotions and activations in 2024 led to the brand’s increased sales?

We saw great success in certain markets with case display programs that helped raise consumer awareness of sake. With the myriad options available to consumers, placing sake in prominent, eye-catching locations leveraged the growing trend of consumers seeking new experiences, driving impulse purchases.

Additionally, single-serve sake products performed very well when cross-merchandised with ready-to-eat sushi offerings in grocery stores. One particular product saw double-digit sales growth throughout 2024, highlighting the effectiveness of this approach.

What on-premise promotions and activations or strategies in 2024 led to the brand’s increased sales?

Sake in the on-premise channel is still primarily associated with Japanese and sushi restaurants. Traditionally, sake has been enjoyed as a food pairing, but it also plays a role in what we call “mood pairing,” enhancing the overall dining experience.

To expand consumer awareness and understanding of sake beyond this traditional context, we’ve focused on encouraging both consumers and restaurateurs to serve chilled sake in wine glasses. Tasting events and training have been instrumental in promoting this approach, helping to broaden the category’s appeal.

How has the lingering pandemic affected the brand, and how did you meet some of the challenges this past year?

The pandemic significantly reshaped supply chains, and this continues to be an ongoing challenge. For instance, reliably sourcing high-quality glass bottles and caps has been an issue.

While we’ve been successful in building redundancy into our supply chains, external factors still keep us on our toes. Quality concerns, long lead times, and rising costs — particularly for freight — have all put pressure on our bottom line, while the potential threat of tariffs also continues to affect certain areas of our business.

Inflation, which began during the pandemic — despite having somewhat slowed — continues to impact consumer behavior and choices. While sake is outperforming other categories that have struggled with reduced sales on-premise, we have seen a decline in our on-premise sales.

Despite these challenges, maintaining the strength of our supply chains and focusing on enhancing the quality and flavor of our sake to meet evolving consumer preferences has been key to retaining customers and strengthening our market position throughout this tumultuous period.

What promotions and marketing plans do you have in place for the rest of 2025 to build on that growth?

Sake is a dynamic category with strong growth and an expanding consumer base. To stay ahead, we need to continuously identify and understand the trends driving consumers toward sake, while also acknowledging the barriers that prevent many from making it a regular part of their beverage lineup.

For 2025, we plan to engage directly with consumers to better understand their expectations—not just regarding the taste and profile of their preferred sake, but also what they seek from the brands they choose.

I’m excited to leverage these insights to refine our portfolio and marketing strategies, ultimately positioning ourselves as a brand that truly resonates with consumers’ needs.

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