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Gekkeikan: A Fourteen-Generation Legacy of Innovation and Craftsmanship

Founded in 1637 by Mr. Jiemon Okura in Fushimi, Kyoto—an area revered for its abundant and high-quality groundwater—Gekkeikan is one of Japan’s oldest and most iconic family-owned businesses. From its humble beginnings as “Kasagiya,” a local sake shop by the Kizu River, Gekkeikan has evolved over nearly four centuries into a globally recognized leader in the sake industry, now led by the 14th-generation family head, Mr. Haruhiko Okura. Exporting more than 80 varieties of products to around 50 countries, Gekkeikan stands as a symbol of Japanese craftsmanship, resilience, and visionary family leadership.

sake is a general term for any alcoholic beverages

Mr. Tsunekichi Okura(11th Gen): The Boy Brewer Who Modernized Sake

Tsunekichi Okura

The company began to modernize rapidly under the leadership of Tsunekichi Okura, the 11th generation family head, who inherited the business at just 13 years old in 1886. He revolutionized sake production through a series of milestones:

• Established a new brewing plant in Nada in 1899.
• Rebranded the product as “Gekkeikan” in 1905, symbolizing the “laurel crown”-a mark of excellence and ambition.
• Founded the Okura Laboratory in 1909, institutionalizing scientific research in sake brewing.
• Pioneered sake bottling and the production of preservative-free sake, greatly enhancing quality and shelf-life.

Industrial Growth and Market Innovation

Tsunekichi adopted Western accounting practices to streamline operations, increasing production 100-fold in one generation. He expanded facilities across Fushimi and introduced bold distribution strategies. By leveraging the national railway system, Gekkeikan began selling sake in train stations alongside “ekiben” (boxed lunches). A designer he hired created the iconic bottle with an attached ochoko (cup), making Gekkeikan sake portable and stylish.

The innovations paid off. In 1911, Gekkeikan won first prize in the National New Sake Tasting Competition. It later swept the top three awards in 1929. Gekkeikan had evolved from a regional sake maker to a national industry leader.

A Culture Rooted in the Okura Spirit

Although orally transmitted for centuries, the “Okura Spirit” was officially codified in 1997 as Gekkeikan’s Basic Philosophy. It rests on three pillars:

• Quality: A non-negotiable priority, upheld by scientific rigor, technological investment, and consistent modernization since Tsunekichi's era.


• Creativity: Haruhiko institutionalized innovation through initiatives like the Idea Awards and cross-departmental collaboration platforms. His belief: “Tradition means innovating.”


• Humanity: A legacy of long-tenured employees—30% have been with Gekkeikan for over 30 years—underlines the company’s emphasis on personal development, well-being, and workplace fulfillment. From custom employee interviews to tuition reimbursement programs and health improvements, Gekkeikan supports a robust talent pipeline.

List of Group companies

S.No	Group Company	Region	Business Description
1	Gekkeikan (USA), Inc.	USA	Production and sales of sake & other alcoholic beverages; import & distribution
2	Gekkeikan (Shanghai) Trading Co., Ltd.	China	Import of Japanese sake and sales of locally-made Gekkeikan (outsourced) sake
3	Taga Co., Ltd.	Japan (Shiga)	Manufacture and sales of sake
4	Matsuyama Shuzo Co., Ltd.	Japan (Kyoto)	Manufacture and sales of sake
5	Kyodo Shuzo Co., Ltd.	Japan (Kyoto)	Manufacture and sales of sake
6	Kinrei Co., Ltd.	Japan (Kyoto)	Production and sales of frozen foods
7	Fujikiyo Co., Ltd.	Japan (Kyoto)	Production and sales of konjac, soy milk, yuba, tokoroten, agar, udon soup base, etc.
8	Okura Sangyo Co., Ltd.	Japan (Uji)	Warehousing, distribution processing, cargo handling, insurance agency; recycled bottles; solar energy
9	Okura Saketen Co., Ltd.	Japan (Kyoto)	Retail liquor sales

Philanthropy Rooted in Gratitude

Tsunekichi’s leadership extended beyond business. Deeply influenced by his mother and his early struggles, he believed in repaying the community that had supported him. After Ei’s death in 1923, he funded Fushimi’s first municipal hospital and contributed to local nurseries, schools, and public safety. He established a fire station and donated land for a community center at Gokonomiya Shrine.

His generosity was quiet but impactful: equipping schools, supporting night students, and aiding rival brewers during financial hardship. These acts reflected his belief that the success of a business should uplift the broader society.

Legacy of Innovation and Service

Tsunekichi passed away in 1950, but his legacy endures. The 12th, 13th, and current 14th heads of the Okura family have continued his vision-expanding overseas, embracing new markets, and reinforcing the values of quality, creativity, and social contribution. Gekkeikan USA, established in 1989, now controls about 25% of the U.S. sake market.

Gekkeikan Okura Sake Museum

To honor and preserve the rich history of the Okura family and the evolution of sake brewing in Fushimi, the Gekkeikan Okura Sake Museum was opened in 1982. Situated in the historic Fushimi district of Kyoto, the museum is more than just a showcase of artifacts—it is a living space where visitors can step into the world of traditional sake brewing. Exhibits include vintage brewing tools, wooden vats, early bottling equipment, and historical records that date back to the 17th century when the Okura family began brewing. Visitors are also introduced to the intricate process of sake production, from rice polishing to fermentation, alongside displays on the cultural role of sake in Japanese life.

Mr. Haruhiko Okura (14th Gen): Crisis, Consolidation, and Strategic Realignment

Haruhiko Okura

When Haruhiko Okura assumed presidency in 1997, Japan’s sake market was in steep decline. Sake shipments halved over the next decade. Haruhiko’s leadership marked a turning point. He undertook painful yet necessary reforms:

• Reduced employee count from 900 to under 500.


• Despite sales shrinking from ¥53 billion to ¥28 billion, maintained annual profits between ¥500 million and ¥1 billion.

In addition, Haruhiko articulated four strategic pillars for Gekkeikan’s long-term sustainability:

1. Deepen and Diversify the Sake Business
   With little expectation for domestic market growth, Haruhiko focused on high-quality, small-lot, and diverse product lines. The aim was to remain nimble and responsive to evolving consumer preferences.


2. Expand Non-Sake Alcohol Business
   Recognizing diversification as vital, Gekkeikan began importing beer and wine, although these still represented less than 5% of total sales. The plan involves leveraging the company’s robust distribution networks to expand offerings beyond sake.


3. Grow the Overseas Market
   Gekkeikan’s U.S. subsidiary, established in 1989 in Folsom, California, became a strategic asset. Capitalizing on the global Japanese cuisine boom, the company scaled its international sales-U.S. operations now represent 10% of total revenue, producing nearly 6 million liters annually.


4. Explore New Business Areas
   The company experimented with non-sake businesses such as skincare but exited when results failed to materialize. However, Gekkeikan remains open to M&A and continues to experiment cautiously in new domains, including health-conscious beverages like “Zero Sugar” sake and the non-alcoholic “Gekkeikan Free.”

From a small riverside shop in 17th-century Fushimi to a globally recognized leader in the sake industry, Gekkeikan’s journey is one of resilience, reinvention, and reverence for its roots.

Source: Les Hénokiens, Case_study_Gekkeikan.pdf, https://www.gekkeikan.co.jp/