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In a world where over 800 million people face food insecurity and the global population is expected to reach 9.7 billion by 2050, food production is reaching its limits. Japanese plant-based food company dishwill approaches this crisis with a unique perspective. We interviewed the CEO about their strategy to improve food self-sufficiency in various countries through "container farming" - an integrated production system from soybeans to final products - and their unique marketing approach targeting five-star hotels.
Could you tell us about your background and introduce yourself?
I'm the CEO of dishwill, born in Kanagawa. I was quite a good student (laughs). In my first year of high school, I had to quit the basketball club due to family circumstances and started working part-time at 7-Eleven, which actually became a stepping stone towards my entrepreneurship.
At that convenience store job, I won employee votes and received high evaluations. This made me think about how to earn more, and eventually, I managed to earn 500,000 yen per month.
How did you manage to earn so much from part-time work?
I registered with a convenience store staffing agency and negotiated directly with store owners. I learned that they were paying 2.5 times the regular hourly wage through agencies, so I offered to work for twice the rate. My hourly wage eventually reached about 3,700 yen.
[*Note: Average part-time wage in Japan is around 1,300 yen/hour]
This experience helped me land a job at Venture Link, a listed company, where I worked alongside graduates from top universities like Tokyo University and Keio. I worked there for 13 years as a food industry consultant.
Later, I was headhunted as a vice president for a startup, but my desire to run my own business grew stronger. Eventually I became independent and started my own company.
I've always been in the food industry. When I handled promotions for Hattendo's cream buns, we increased daily sales from 20-30,000 yen to 1 million yen in just three months.
What can you tell us about dishwill's current operations?
We're a plant-based food company addressing the upcoming food crisis. But we're not just making meat alternatives - we're obsessed with taste. Interestingly, we don't have a single vegan or vegetarian on our team (laughs).
Currently, 800 million people worldwide face food shortages, and the population is expected to reach 10 billion in 25 years. Yet food production has its limits. We're leveraging Japanese food technology to develop plant-based foods that everyone finds delicious.
For example, we've developed pâtés used by Palace Hotel and Marriott Hotel, and chicken products benchmarked against KFC. In home taste tests, people couldn't even tell they were plant-based.
We're currently developing 84 different products, including foie gras and char siu. Knowledge gained from one development often contributes to other products, creating an organic development process.
Are all products soy-based?
While many are soy-based, our foie gras is made from cashew nuts. Though we primarily focus on soy-based products through to final production, we give our R&D team considerable freedom.
Recently, our plant-based canelé won second prize among over 100 new products at a gourmet show. It's a gluten-free canelé using tofu, and the Prince Hotel has expressed interest in serving it.
How are you approaching the goal of solving global food issues?
We started sales in Singapore last June and are expanding into overseas markets. We chose Singapore first because their food self-sufficiency rate is currently 8%, and they aim to increase it to 30%.
We want to establish a solid plant-based market and demonstrate both the deliciousness of dishwill products and the excellence of Japanese food technology. Our next step is to install plant factories with an integrated system for manufacturing from soybeans to final products.
Unlike the traditional separate supply chain of soybean producers, oil manufacturers, and final product makers, we handle all processes in-house at a container scale. This helps improve food self-sufficiency rates in various countries.
The UAE, for instance, has shown interest following food supply disruptions from the Ukraine war. Once we establish a track record in Singapore, we can expand to places like the UAE . We're currently preparing for this expansion.
What scale is needed to increase Singapore's food self-sufficiency rate?
We estimate 20 to 50 containers could serve Singapore's market. Picture containers stacked at the port - they can even be installed on water.
As a startup, we're planning to progress gradually through government negotiations rather than trying to supply everything at once. We'll respond to specific needs, such as replacing protein deficiencies with plant-based alternatives.
In UAE, we're considering underground factories - placing three-level containers underground with only the entrance above ground. Using UAE's solar power infrastructure would help reduce operating costs.
Interestingly, we're exploring a system that generates electricity using hybrid car engine technology, reusing the resulting CO2 and water in plant factories. We're also researching using soybean oil as virgin oil in our power generation system, particularly relevant as Europe mandates 50% SAF (Sustainable Aviation Fuel) for aircrafts.
What's your main focus right now?
Our primary mission currently is hotel sales. We're aiming to introduce our products to almost all four- and five-star hotels.
Why target hotels first?
It's interesting to note that despite Japan's familiarity with soybeans, plant-based food adoption rates are relatively low compared to other countries. Japanese people already know many ways to enjoy soybeans, so they're less likely to choose plant-based alternatives. However, if all four- and five-star hotels adopt dishwill's plant-based products, we believe people will be more inclined to try them out.
When widely adopted by such hotels, just one person sharing a positive experience can create nationwide customer potential. That's why we're targeting this segment first.
While our revenue was only about 2 million yen during our R&D phase last year, we're expecting to reach around 100 million yen this year. We're confident in our products, so now it's just a matter of steady sales activities. The first step is adoption by five-star hotels - there are only about 23 such hotels in Japan, and we're targeting all of them.
What are your plans after establishing a presence in Japanese luxury hotels?
We're simultaneously advancing overseas. Japan is actually less susceptible to food crises - it's an island nation with a declining, aging population with smaller appetites. Therefore, our 'solution to food crisis' proposition doesn't resonate as strongly here.
While the plant-based market in Japan is around 5-6 billion yen, globally it exceeds 1 trillion yen. That's why we emphasize overseas expansion. Interestingly, when selling abroad, people ask, 'Where do you sell in Japan?' If we can say 'We're in all of Japan's five-star hotels,' that creates credibility. That's our logic for expansion.
As an experienced entrepreneur, what advice would you give to aspiring business owners?
While there's a push to increase entrepreneurs in Tokyo, I recommend starting a business either very young or after substantial work experience. I don't particularly recommend mid-career entrepreneurship.
Entrepreneurship inevitably involves failure. Young people can bounce back from failure, but someone aged 29-30 earning 5 million yen might struggle to recover. However, a recent graduate earning 3 million yen can rebuild after 2-3 years of startup failure, and that failure becomes valuable experience.
I started my business at 36-37, when I had connections with over 1,000 food manufacturers. These connections could help if things went wrong. You need either to be at an age where failure is acceptable or have a network that can support you during difficult times.
Also, young entrepreneurs often create similar products - like another social media app that's just a variation of existing ones. Creating something truly new often requires insights that come from experience.
What's your view on Japan's startup environment?
Japan's startup scene is quite conservative. Many are tied to existing frameworks like receiving Ministry of Agriculture subsidies or working with JA (Japan Agricultural Cooperatives). However, I believe the 'outsiders' who don't fit these frameworks often hold more interesting potential.
What advice do you have for foreign entrepreneurs looking to start businesses in Japan?
They actually have an advantage because they can compete with perspectives and cultural approaches that don't exist in Japan. VCs are looking for companies that can become 'singular points' of difference.
Japanese people tend to highly value English-speaking foreigners. Therefore, the potential for creating interesting services and securing funding might be higher than for Japanese graduates from prestigious universities.
However, one cautionary note: as you grow, you'll increasingly deal with large corporations and need to navigate uniquely Japanese customs like ringi (formal approval) systems. Adapting to these practices becomes crucial for success.
What stood out during this interview was the company's thorough technological development and strategic uniqueness. By handling everything from soybeans to final products in their plant-based food manufacturing, they maintain control over the entire process. They leverage this strength to build market evaluation and recognition through high-end hotel partnerships.
Even more noteworthy is their business expansion beyond food manufacturing. From power generation systems using hybrid car technology to converting soybean oil into aviation fuel, they present solutions that transcend traditional food production in addressing the food crisis. Their overseas expansion, starting with Singapore and extending to the UAE, demonstrates a flexible strategy adapted to each country's circumstances.
Their pursuit of delicious food while tackling global social challenges makes dishwill a company to watch closely as they continue to evolve and expand their impact.
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