NEW YORK, April 2002 -- Paul Yamaguchi & Associates, Inc. the Japanese nutraceutical research and consulting company, announced completion of the report on the $3.4 billion market of Japanese functional foods with government approved health claims, FOSHU, entitled FOSHU 2002.

What is FOSHU?
FOSHU is a unique approval system developed by the Ministry of Health, Labor and Welfare of Japan started in 1991. Registration allows approved specific label health claims to be made and the use of approved FOSHU seal on the labels.

The system is unique and the world's the first functional foods health claim approval regulation for finished products. Since FOSHU started, 288 products have been approved (as of December 2001) and the market is now $3.4 billion, growing at a rate of 18 percent a year. It is the fastest growing category in the Japanese food and beverage industry.

Why has this report been written and who will benefit?
Today, US consumers are overwhelmingly accepting of functional foods. They may not be aware of the term "functional foods" but more people are incorporating them into their every day diets. The nation's 67 million baby boomers are becoming "aging boomers". They try to improve and maintain their health by not only eating the right foods but also searching for foods that improve their health conditions.

Despite the rising interest in functional foods, product choices are still limited and the benefits are not so clear. Soon, aging boomers will demand not just functional foods but functional foods that provide benefits for their specific health conditions. They seek products that have physiological functions to improve or contribute to good health.

FOSHU 2002, provides information on functional foods that truly improve specific health conditions. This report will be beneficial for food, beverage and nutraceutical companies, currently or planning to be involved in the development of true functional foods.

How FOSHU influences US market
FOSHU approved products are not only marketed in Japan, but are also expanding to other markers. Yakult (Tokyo, $1.9 billion) is the most successful probiotics brand in Asia and Europe. 16 million people are taking Yakult every day worldwide. Kao's (Tokyo, $6.8 billion) Econa Cooking Oil (FOSHU #220) contains diacylglycerol which helps to prevent obesity and also lowers cholesterol. Econa generates $100 million a year in the Japanese market. Kao and ADM have just announced a joint venture to develop Econa cooking oil in the US market. Calpis (Tokyo, $840 million), this 83 year old fermented beverage company has developed Ameal S (FOSHU #114) that prevents high blood pressure, using component called lactori peptide. Calpis and Monsanto agreed on a joint venture to develop the lactori peptide market in the US. In December 2001, Institute of Food Technologists awarded the Ameal S, the best product of the year. Other FOSHU companies like; Kyowa, Taiyo Kagaku, Matunami are already established their brands and are supplying their ingredients to US markets.

Kellogg's All Bran cereal (FOSHU #183), Recaldent (FOSHU #298) from Warner Lambert, Pro Active (FOSHU #345) from Unilever have all became FOSHU. The names and packages may be different, but soon, FOSHU approved products may showing up in your neighborhood supermarkets.

The Most Complete FOSHU Report
It begins with a brief introduction to FOSHU followed by its history, functional components, permitted health claims, market characteristics, marketing and approved products for all seven FOSHU health benefit categories. It also covers FOSHU regulatory environment, approval process and information on related corporations, organizations and a media to event schedule.

We have featured over 70 innovative FOSHU products with photos and specifications. For each category we focused on successful products and company backgrounds. The report also lists all FOSHU authorized products and functional components and the manufacturer names, information and their websites.

FOSHU 2002 is 110 pages of the most comprehensive information and report for people who want to translate dynamic Japanese functional foods and beverages with health claims to your home market. ƒq

To learn more about FOSHU 2002, visit:
www.functionalfoodsjapan.com
or contact Paul Yamaguchi
Paul Yamaguchi & Associates, Inc.
Telephone: 914-631-2142
e-mail: pya@ix.netcom.com