Elevating Japan's "Fermentation Culture" to "Fermentation Philosophy"

This series explores the secrets behind "vibrant companies" possessing "originality," investigated by Dentsu Inc.'s "Company Design" team. In the 38th installment, we spoke with Yasuhide Koizumi of Orize, who founded his company with the vision of elevating the fermented culture found in everyday items like sake, soy sauce, miso, and natto to the realm of "fermentation philosophy." He shared his insights on the potential of "fermented foods" and "fermentation."

Written by Hajime Yakushiji (Dentsu Inc. BXCC)

Orize is a startup pursuing alternatives to sugar and beyond with its flagship product, "Orize Sweetener (Rice Koji Fermented Sugar)." Founded in 2018, it aims to solve social issues by leveraging fermentation technology. The rice used as the raw material for Orize Sweetener faces declining domestic consumption. Orize seeks to create new product value by extracting sweetness components from this rice through fermentation using koji (rice mold), linking it to modern consumer needs. The company also engages in "fermentation upcycling" of corporate non-standard products and residues, simultaneously contributing to solving issues surrounding Japanese rice production and addressing food loss problems.

When you hear "koji-derived fermented foods," you inevitably imagine a niche market supported by a very small, health-conscious customer base. However, President Koizumi's vision for the future is boundlessly grand. Though the interview lasted only about an hour, by the end, I had become a complete fan of this passionate samurai dedicated to fermentation.

Yasuhide Koizumi: President and CEO, ORYZAE
Born in Saitama Prefecture in 1997. While studying Agricultural Economics at Utsunomiya University's Faculty of Agriculture, he won the Grand Prize at the 5th Tochigi Entrepreneur Contest with a business idea utilizing fermentation. He then founded Agcur Co., Ltd., the predecessor to ORYZAE Co., Ltd., as a Utsunomiya University-spun startup. He has held his current position since 2018. His mission is "to ferment society," aiming for a circular society coexisting with microorganisms.

The Origin of Entrepreneurship: "Frustration"

Before discussing the startup's origins, I asked about the "Department of Agricultural Economics" mentioned in his profile. It felt like the root of Orize Co., Ltd. lay there. "What exactly is agricultural economics?" I asked. "Well, during the Meiji era, it was apparently a cutting-edge, prestigious field of study. That's because it was a time when challenges were emerging—food shortages due to rapid modernization, population influx into urban areas, and the widening gap between agriculture and industry needed to be addressed," explained President Koizumi. "This trend continues today. For instance, agriculture cannot create businesses based on credit like financial companies or IT firms. If you imagine rice farming, which accounts for 70% of Japanese agriculture, you'll understand. From the perspective of capital efficiency, it's truly an unprofitable endeavor. That feeling of frustration I had back then – 'Wow, can't something be done about this?' – I think that's what led me to my current work. Also, if I'm going to tackle something, I prefer it to be difficult. I think my personality, which has always been like that, also plays a role."

The word "frustration" really struck a chord with me. This isn't about some grand solo act of achieving success and fame. It's about knowing the reality before you and refusing to ignore it! President Koizumi resolved himself and stepped into an area where most people, myself included, would just shrug and say, "Well, that's just how it is," or, even if they did tackle it, it would never be straightforward.

President Koizumi stated, "I absolutely love freshly cooked rice, so I want to preserve delicious rice (and its culture itself) for the future."

His respected figure is Sontoku Ninomiya.

"My frustration grew, but I was just a young guy with no farming background and no prior interest in agriculture. Desperate for clues, I devoured old books. Honestly, having played baseball all through middle and high school, I thought books were just for hobbies or killing time. But the more I read, the more surprised I was—there was so much useful information! I started feeling like the pioneers were cheering me on."

Among them, Ninomiya Sontoku struck me the hardest. "Ninomiya Kinjirō, right? The one depicted reading while carrying firewood on his back, conveying the importance of diligence. But what truly impressed me was how he devoted himself not to increasing his own wealth, but to nurturing young people who would carry on and expand his ideals. Indeed, figures like Eiichi Shibusawa, Zenjirō Yasuda (founder of the Yasuda Zaibatsu), and Konosuke Matsushita are said to have been influenced by Sontoku." Waiting patiently for the time when one's own aspirations mature and become a force to change society. It was Sontoku's lofty perspective and deep passion that captivated the young Koizumi.

While listing money, business, and ideas as things to leave for posterity, Sontoku expressed the view that "the greatest legacy anyone can leave is a courageous and noble life."

Value lies precisely in contradictions

We asked Minami Nagase of the ORIZE Business Development Department, who was present during our interview, about President Koizumi's character. She remarked, "I think he's a very rare person who sees the big picture while also engaging in micromanagement at times." This means he balances setting astonishingly grand visions as a leader with conversing directly with those on the front lines. "It's just that I want to be close to people's feelings," President Koizumi says, slightly embarrassed.

"Take the sugar industry, for example. While we're on good terms now, back then there was this vibe of 'How dare this upstart come barging in?' After all, I'm the president of a company trying to sell sugar substitutes – and a young upstart at that. But my mindset has always been: not about rejecting anyone or anything, but about pooling our wisdom to move forward in a positive direction. The sugar industry has its own struggles. Of course, most of these are beyond what I can solve alone. But that's precisely why joining hands is so important."

At first glance, it's about competitors joining forces, or people from completely different industries teaming up to create a future full of dreams. This is the kind of collaboration happening across various industries these days. And the underlying thought of President Koizumi is remarkably simple yet unique. "It's precisely in contradictions that value lies. It's in a society where contradictory things coexist that the future lies. Don't you agree?"

Centered around Oryzae sweeteners, the company develops products like rice koji and fermented foods under the "Food Cosmetics ORYZAE" brand, making them easy to incorporate into modern lifestyles.

Even dialogue is something that ferments

To achieve this, President Koizumi states, "We want more people to understand the value of 'fermentation.' Our core technology, koji, is just one example of 'fermentation.' Sake, soy sauce, miso, natto, pickles, kusuya... 'Fermentation' is a technology, a culture, and a tradition our country can proudly present to the world. It supports our daily lives and simultaneously offers clues to solving societal challenges. After all, it's built on dialogue with our ancestors and microorganisms. The more you learn, the deeper its wisdom and practices become."

I see. That's why Ninomiya Sontoku comes to mind. It all connects beautifully. "For example, today, we're having this 'dialogue' with Mr. Yakushiji, right? Of course, I prepare beforehand, thinking I'll probably be asked things like this. But as the conversation continues, it expands, or veers off in a good way, doesn't it? I think dialogue, too, is something that ferments."

President Koizumi lets his ventures "ferment" within the relationships of various stakeholders. As a result, they sometimes develop into unexpected ideas.

What is branding?

Following the thread of "dialogue," I asked about Orize's core concept, "FIVE WIN." "It's an evolution of the Omi merchant principle of 'benefit for all three parties,' if you will. In my interpretation, while 'benefit for all three parties' is a rational and seemingly sound philosophy, I feel it leaves out inefficient elements. Things like the global environment or tradition. Things that are inefficient, things that are difficult to truly confront. But I don't think we should run away from them. Honestly, while thinking 'That's important too,' 'We can't abandon this either,' it somehow became 'Five Win (FIVE WIN).'"

"At the core of 'FIVE WIN' lies the concept of 'selfish altruism,'" President Koizumi states. It means that each individual benefiting themselves ultimately benefits others. I thought this perfectly captured fermentation itself—where humans benefit from the very activity of microorganisms.

Finally, I asked President Koizumi how he plans to realize the branding of FIVE WIN. Of course, I knew there was no simple, one-size-fits-all answer. That's precisely why I wanted to ask.

After a moment's thought, President Koizumi shared this perspective: "It's a difficult question, but I believe one effective approach is to integrate 'fermentation' into already established brands—to realize a 'brand × fermentation' synergy. Essentially, we're weaving the philosophy and culture of 'fermentation' through brands that everyone recognizes. When people hear 'fermentation,' they often think it takes a long time. But while some fermentation processes take two years, others, like natto, can be completed in just two weeks. There's no inherent image of speed associated with 'fermentation,' right? That's what I mean. What our company wants to spread to the world isn't the brand of Oryze, but the brand value and potential inherent in 'fermentation' itself."

Branding, put very simply, is about making many people in the world think, "Ah, how grateful I am." But that isn't something achieved overnight. The "tradition" President Koizumi is so particular about is surely not a term born of nostalgia. Having fully grasped the difficulty of building a brand, his unwavering resolve and confidence as one who inherits that responsibility from predecessors shone brightly to this writer.

Orize's website is here.

This series follows Dentsu Inc.'s 'Company Design' team as they explore the secrets of 'vibrant companies' possessing 'originality.' In Episode 38, we introduced Orize, a company born from the desire to elevate the fermented culture surrounding us—like sake, soy sauce, miso, and natto—to the realm of 'fermentation philosophy.'

The Season 1 series can be found here.
The "Company Design" project site is here.

[Editor's Note]

The world has come full circle, with renewed focus on "branding." While branding once primarily focused on making a company's existence known and gaining societal recognition for its value, today's emphasis seems to lie in the act itself: asking "How can we be of service to society? What is the fundamental purpose of our company's existence?" This shift reflects both the maturing of companies and society. Yet, it also carries the risk of devolving into abstract, "Zen-like" debates. In some cases, it may even be criticized as "armchair theorizing" or "idealism."

In response to such criticism from the editorial department, President Koizumi stated: "To avoid becoming idealistic, I believe we need to quantify the Fermentation Philosophy rather than present it qualitatively. It's about making it 'visible'." By sincerely listening to both sides, demonstrating policies and results with concrete numbers, the role ORIZE should fulfill and what society expects of it will gradually emerge. "It's just my nature, I suppose—I'm the type who gets motivated when people expect things of me. As a result, I tend to get greedy, wanting to do this and that." I thought he was an honest man. As that honesty "matures" and "ferments," some kind of chemical reaction should occur in daily life and in society.

Mr. Yakushiji, who conducted this interview, describes President Koizumi's character as "a person with space." Even something as fundamental as communicating with microorganisms requires mental space to function. It struck me as a perfectly apt description.