Japanese companies see consumption tax cut as frozen food opportunity

The planned cut in Japan's consumption tax on groceries is convincing some companies that there is money to be made in frozen food.

The tax will be slashed to 1 percent from 8 percent for two years from April next year. The cut will include takeout food, but the rate for dining out stays at 10 percent.

Some companies, like the Takashimaya department-store chain, believe this will convince more people to eat at home and boost frozen food demand.

Takashimaya will launch its first frozen food brand in September to tap into the trend.

"We see the consumption tax cut as a tailwind for our frozen food brand. We believe the convenience of frozen food readily available at home is a key selling point," said Takashimaya official Tanaka Tatsuya.

The revenue opportunity has also attracted hamburger chain Mos Food Services. It is producing frozen grilled rice balls for sale through supermarkets and other channels from September.