Drinking Sake in the USA - The Sake Shop: Changing the Hearts and Palates of the Aloha State

Welcome to Sake Street’s new column offering an in-depth look at the many fascinating aspects of the American sake scene! This column will feature interviews with industry professionals, including retailers, brewers, importers, and even rice growers. Put on your academic cap and get ready for a whirlwind of compelling stories from one of the sake industry’s largest export markets.

Our first interview is with Nadine Leong, the owner and founder of The Sake Shop in Honolulu, Hawaii. In this interview, we discuss everything from what inspired her to open the only sake store in the Hawaiian islands, to the challenges of shipping from Oahu, and how she has seen the industry grow over the past fourteen years.

Offering premium sake to the community

Considering that The Sake Shop is the first and only sake-centric bottle shop in Hawaii, the most compelling question to ask is simply, “What inspired you to open a sake shop here?” Nadine mentions that at first she wasn’t really a drinker, but her husband enjoyed sake and was often inspired by their vacations in Japan. When they’d return home from their travels, there was absolutely nowhere to purchase premium sake in Hawaii. “We would go to different stores, hoping to find something equivalent or something that we would enjoy. Then we realized there really weren't a lot of places around that have a nice selection to choose from or people to ask questions about the sake itself.”

“The limited supply of sake here started the dream” – the dream, that is, of opening a nihonshu-focused shop in Oahu. The limited supply of sake entering the Hawaiian islands inspired Nadine and Malcolm, both born and raised in Hawaii, to consider starting their own sake retail business. When they came up with the idea, it was initially driven by their desire to provide themselves and their friends with good sake selections. But introducing newcomers and the community to sake was also important. Nadine told her husband, “You know, if we open a niche market, a sake shop where we could actually select the sake that we wanted, we can offer guidance to people who have a lot of questions about sake, just like we did. That would be a really nice business to get into.”

As soon as they opened for business, they quickly felt the influence of the sake industry. “We opened in 2010 and it was really just myself, surrounded with sake day in and day out, holding events and meeting people in the industry. My interest just grew and grew and grew. It's one of those things that if you're in it, there's no way you can’t be excited and inspired by everything.”

Hawaiian Shipping Logistics 101

Another intriguing aspect of the business is how shipping operates from island to island. With The Sake Shop being the only specialty sake store in the Hawaiian archipelago, one might assume a lot of back and forth shipping would take place. However, that is not the reality of selling sake in Hawaii. To ship between islands, the liquor commission requires a separate liquor license in each county each of which also require their own brick-and-mortar location. This is an incredibly expensive endeavor. Instead, many of The Sake Shop’s loyal clientele actually fly to Oahu to pick up premium sake.

Note: There are five counties comprising the eight Hawaiian islands.

As for receiving sake shipments from Japan, the process is relatively straightforward. Even when dealing with the three-tier system (importers/producers, distributors, and retailers), it is much simpler than dealing with the strictness of the local liquor commission. With the islands being relatively close to Japan, most sake distributors such as World Sake Imports (WSI), The Cherry Co. (MTC), and JFC, ship directly to Honolulu. However, companies that also sell Japanese food or other products in addition to sake may first ship to Los Angeles, CA.

To combat Hawaii’s constant heat, all the sake on display is kept refrigerated, but there is a storeroom in the back and the AC runs 24/7. The last major challenge is local delivery. Until recently, third party delivery companies such as Uber Eats were prohibited from delivering alcoholic beverages and employees on the retailer’s payroll were required to handle deliveries personally. However, this has recently changed and Nadine is looking into local same-day delivery options.

Working with other sake retailers is beneficial for the industry

It’s incredible to run a successful business without shipping, especially since many companies rely heavily on online commerce. In Nadine’s opinion, having bigger companies such as True Sake and Tippsy promoting sake on a large scale has been highly beneficial for The Sake Shop. While these companies provide free promotion of many brands The Sake Shop carries, Nadine reciprocates by recommending mainland US retailers for her customers looking to ship sake to loved ones as gifts or during the holidays. Nadine says “I often recommend my customers to True Sake who want to ship to their families in the continental US since we can’t do it. How can I not support sake retail stores with knowledgeable staff and great selection? They are the first! But if people are in New York, then of course I recommend Sakaya.”

Nadine is also concerned about the global footprint of shipping sake from Hawaii to the continental US, so utilizing other retailers is a more sustainable option for both customers and the environment. She explains, “I have no problem referring them out. If anything we want to capture the neighboring islands which we will if the laws change.”

##Oahu receives customers from all over the world Since opening, Nadine has observed that every year, interest in sake continues to grow. The Sake Shop has had a significant impact on Hawaiian island customers, but Nadine says many tourists also frequent the shop. Interestingly, they primarily come from Canada, China and New Zealand. As for Japanese tourists, they generally come to Hawaii to relax and enjoy Mai Tais and Piña Coladas rather than shop for sake. Due to shipping costs, sake in Japan is typically half the price it is in Hawaii. However, curious Japanese tourists will visit The Sake Shop and are impressed with the variety of sake available.

Nadine recognizes that the influence of Japanese culture in Hawaii brings distinct advantages. Since locals make up the majority of the shop’s revenue, Nadine says, “we have a little bit of an advantage here in Hawaii since we have lots of Asian Americans and people who are familiar with sake.” Sometimes sake fans from the US mainland also drop by. Nadine recalls that she's had some mainlanders get off the plane and make The Sake Shop their first stop in Oahu!

Large events have also contributed to the promotion of sake in Hawaii. One of the most significant is the annual sake-focused tasting event, The Joy of Sake, which has played a major role in this remarkable growth. Organized as a non-profit, the event allows attendees to taste sake that has been submitted to the U.S. National Sake Appraisal. First held in 2001, The Joy of Sake takes place annually in both Honolulu and New York City. The Joy of Sake showcases a wide range of sake styles and collaborates with local restaurants to create food and sake pairings. Before the pandemic, the event attracted over 2,000 attendees, yet many remained unaware of the vast diversity of sake types available. Even without complete knowledge of sake categories, the Joy of Sake introduces guests to a broad selection of sake and has become a highly anticipated celebration each year.

Sake trends in Hawaii

In major cities of the continental US, there has been a notable recent trend of Japanese produced sake being made in a ‘modern’ style that emulates wine. They tend to have higher acidity, usually once-pasteurized, and are more refreshing with a slight spritz. Nadine notes that she is also seeing this style of sake becoming available in Hawaii, but most of her older customers prefer the more traditional premium sake styles, “We've had devoted customers for a while, so they are accustomed to more traditional sake. The newer style, the more acidic or spritzy ones are getting some interest from younger people who are starting to drink sake. It seems people are excited about the spritziness. The high acid, not so much.”

The ‘top four’ well-known brands entering Hawaii are Dassai, Kubota, Otokoyama and Hakkaisan, which can be found on many restaurant lists in the Hawaii islands. “In terms of 'enhancing' our younger clientele's interests, I usually find it nice to let them know about our complimentary casual "Aloha Friday Tastings". The best way to learn about sake and discover what types of sake you might like, is by tasting a variety of different ones. And we're proud to have an abundant selection to choose from.”

With her regulars, she adds excitement to sake sales by creating thoughtfully curated sake pairings with time-honored Hawaiian cuisine. When pairing sake with Hawaiian dishes, she focuses on the broader category of sake rather than individual bottles. Nadine says, “I don’t have a particular sake in mind, but I do kind of go towards the various styles. In Hawaii, we have a lot of seafood, especially poke, and the ginjos do really well. With heavier dishes like poi and Kalua Pig, we gravitate towards junmai styles. We really like to offer a wide variety for people to choose from.”

Dreams for the future

To continue moving forward as a community-driven provider of Japanese sake, Nadine aims to make it easier for her customers to receive sake from their shop. She explains, “I think our goal eventually is to be able to offer a lot of different delivery options, such as online commerce, shipping locally and to neighboring islands. And we want to be able to expand. Not by opening another store, but by moving into a larger space.”

The Sake Shop’s current size is comparable to two moderate-sized rooms, with one slightly shorter than the other, roughly forming the shape of the letter J. The total area is approximately 1,156 square feet, with 800 of those used as visible retail space.

“The space we are in day-to-day is okay, but when we hold tastings and have events, unfortunately it is way too small. We do tastings in the shop and we have a separate room for events, but we just can't accommodate the amount of people that attend. I want my customers to be comfortable and enjoy their time while they are here; mingle and talk with brewers and other attendees. And because we are getting more inventory, finding a place to store things is getting difficult.”

Besides wanting a larger space, shipping island to island and holding tastings, Nadine’s biggest dream is to create a dedicated sake learning center. This would be a place where people could discover sake without feeling intimidated, offering classes, workshops, brewery-focused dinners and cultural events centered around nihonshu. Nadine enthusiastically shares, “I’d like to have everything all in one space. Like an area where there's a library or a nook; people could sit down, read and learn about sake. That would be really cool. We could also combine it with a little bakery area where customers could sip on sake and have different kinds of sweets. Just a place that encompasses lots of things so people can have a one-stop shop.”

A one-stop sake shop would truly be the first of its kind! The Sake Shop’s journey will be exciting to follow as it continues to evolve.

Shop Information

The Sake Shop Owners: Nadine & Malcolm Leong
Address: 575 Cooke St. Unit B, Honolulu, HI 96813
Hours: Monday-Saturday 11am-8pm, Sundays 12-5pm
Website: https://sakeshophawaii.com/