Activities to Reduce Environmental Impacts (1) Sales Methods While selling demands efficiency, through effort we can not only save resources and energy but also create new values.

1. We saved 370,000 PET bottles through bulk sales of shochu

Bulk sales of shochu were tested in the Kanto region from July of 1998. With the support of customers and consumers, the system was expanded to the entire nation by August of 1999. This translates to a total reduction of 370,000 PET (2.7 liter) bottles. Bulk selling also permits the consumer to buy as little or as much as needed. We are spreading this system to other items such as prepared dishes.

From production to sale and all the way to consumption, modern society uses an enormous amount of resources and energy to achieve any increase in convenience. By putting a little human effort back into the process, we can not only conserve resources and reduce waste, but also create new value such as the rebirth of conversation between stores and customers. We offer bulk sales to not only retail stores but also drinking establishments, which generate a large volume of empty containers. Our company has made a move toward large containers and specialized spirits bottles and is proposing to the business marketplace a sales system that creates no empty containers. About 1600 stores nationwide are currently cooperating.

2. We're expanding the use of returnables as good for the environment

There is debate over whether returnable containers are really good for the environment. One argument holds that one-way containers* must be better for the environment than transporting a used container back to the factory by truck and using a large volume of water to clean it. The answer isn't easy, and will vary depending upon which environmental issues we choose to emphasize. Takara Shuzo believes that the returnable containers are an effective means of addressing the problem of thrown-away containers that distillers and brewers visit upon society. The development of new returnables that can use existing systems for returnables, fitting in while maintaining and expanding those systems, is a vital topic. Furthermore, Japan can be proud of the closed economic system for returnables that started with the 1.8-l issho bottle over 100 years ago. Maintaining this system - a vital social infrastructure for the 21st century - requires alcohol makers to take on responsibility for expanding the use of returnable products. We would like to appeal to all consumers to purchase returnable containers and take them back to the shop. Through this small effort, we can conserve resources and reduce waste.

Takara Shuzo is the largest user of issho bottles in Japan, but has become involved in making 720 ml shochu bottles returnable as well. In June of 1999, we changed the bottle for a new major shochu product, ARack, to a returnable. Manufacturers, distributors and consumers working together to expand the use of the returnable system can make a large contribution to the environment.