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Contents 1______________________________________

Introduction 2______________________________________

Index of Companies 3______________________________________

Company Profiles 4-28______________________________________

What Is JETRO/ICF? 29______________________________________

Outline of 30-31JETRO/ICF Programs______________________________________

History of Success 32______________________________________

JETRO/ICF Officesin Canada

Inside BackCover

JETRO / ICF 2001/2002 2

INTRODUCTIONIn this year’s edition of Success in the Making, I am pleased to note that the numberof case studies profiled has not declined but actually risen, despite the obviousdifficulties in the Japanese market, the downturn in the U.S. economy, the dot-comcrash and the effects of September 11. In fact, we could have profiled even more,except that we were unable to include the stories of four companies due to reasonsof confidentiality.

Once again, the focal point of JETRO’s activities in Canada during the last fiscalyear centred on the Japanese IT Mission to Canada. The success of the 2000 ITMission to Canada prompted JETRO to organize another mission consisting ofabout 48 Japanese business delegates who visited Montreal, Toronto, Calgary andVancouver. They met 146 Canadian business representatives during the missionand made site visits to over 10 Canadian companies and research facilities. Inaddition, over 70 Canadian companies gave presentations and productdemonstrations to members of the Japanese mission. Some of the companiesprofiled in this publication, Kaydara, Pacific Links and Pattern Discovery Software,have had great success out of these IT Missions.

Notable in this year’s edition is the large number of environment-related stories,which emerged mainly out of JETRO’s Import Fairs, Environment Japan 1999 and2001, and the Environment Import Product Specialist Program. Ballard PowerSystems was a high-profile exhibitor at Environment Japan 2001.

Our two Senior Trade Advisors and Advisor on Investment in Japan have also beenactive in supporting Canadian firms, including two cases of direct investment inJapan by Carroll Healthcare and Hydrogenics. Other companies used a wide varietyof our programs to find success in Japan such as the Export to Japan StudyProgram, the Invest in Japan Study Program, Business Support Centres and theHousing Materials Centre.

I am especially pleased to introduce the first biotechnology companies included inthis series, Caldwell Bio Fermentation and Signal Gene. These success storiesemerged out of the Montreal-Hiroshima region-to-region program and I lookforward to JETRO assisting many future biotech tie-ups between Canadian andJapanese firms.

Lastly, we were pleased to welcome again a Saké Mission to Canada. Forty-eightsakés from sixteen brewers were exhibited at a tasting event attended by over 120people, including media and wine connoisseurs. We were also presented with anexcellent speech by Philip Harper, the only foreign saké brew master in Japan, onthe joys of saké and the intricacies of the saké brewing process.

From this collection of success stories, I hope that more Canadian companies will bemotivated to look for opportunities to do business with Japan and ignore thenegative media concerning the state of the Japanese economy. Japan still has one ofthe highest GDPs and savings rates in the world and the Japanese public is morethan ever looking for products from abroad. The companies in this publication havefound success in Japan; I hope that you do to.

Tomofumi SetsudaExecutive DirectorJETRO Toronto

JETRO / ICF 2001/2002 3

Biotechnology ProductsCaldwell Bio Fermentation Canada Inc. ....................... 4Signal Gene ................................................................ 5

Construction / Housing ProductsLauzon Distinctive Hardwood Flooring ....................... 6Winsire Enterprises / MegaPro Tools Inc. ...................... 7

Environmental / Fuel Cell ProductsAqua-Plant Construction Co., Ltd. .............................. 8Axys Analytical Services Ltd. ........................................ 9Ballard Power Systems Inc. ........................................ 10EnviroMetal Technologies Inc. ................................... 11Hydrogenics Corporation .......................................... 12Lord & Partners Ltd. ................................................. 13Napier Environmental Technologies Inc. .................... 14Sanexen .................................................................... 15

Food & Beverage ProductsGBK Canada ............................................................ 16Joseph’s Estate Wines ................................................. 17Leahy Orchards Inc. .................................................. 18

Healthcare ProductsCarroll Healthcare Inc. .............................................. 19Techno Scientific Inc. ................................................ 20

Technology ProductsAdvanced Chemistry Development Inc. ..................... 21Colubris Networks .................................................... 22Global Geomatics ..................................................... 23Kaydara .................................................................... 24Pacific Links .............................................................. 25Pattern Discovery Software Systems Ltd. .................... 26SpiderSoftware .......................................................... 27

Miscellaneous ProductsBrookdale International Systems Inc. .......................... 28

INDEX OF COMPANY PROFILES BYPRODUCT CATEGORY

JETRO / ICF 2001/2002 4

CALDWELL BIO FERMENTATIONCANADA INC. (ORIGINALLY BIO LACTO)

“We offer a new twist on vegetables,” says Gary Caldwell, President ofCaldwell Bio Fermentation Canada Inc., a Canadian company thatcreates mixed-culture starters used to ferment vegetables for humanconsumption. “Bio lacto vegetables have some significant healthadvantages over ordinary vegetables,” he explains, “for example, thesugar content of these vegetables is transformed by lactic bacteria intoa more easily assimilated form, making them a food recommended fordiabetics. This is a huge selling point for us.”

Over the past three years Caldwell has been working towards the goalof expanding its business into foreign markets, including Japan’s.Caldwell was first confronted with the idea of export to Japan in 1999when a partner research centre in Quebec recommended JETRO’sservices.

JETRO put Caldwell in contact with a Japanese company that wasinterested in their vegetables and so, the company’s export business toJapan began. After a series of meetings in Canada as well as in Hiro-shima, organized through JETRO’s Montreal-Hiroshima Region-to-Region Programme, Caldwell and the Japanese company reached anagreement. Explains Mr. Caldwell, “although it won’t be finalized fora few months yet, the basic terms of the deal have been negotiated:the Japanese company will have exclusive rights to our vegetablestarter product and will purchase enough starter to ferment 1000tons of vegetables.”

“Japan proves to be a great market for us,” says Mr. Caldwell. “Tradi-tionally, the Japanese consume a lot of vegetables prepared in a similarfermented manner. However, a law recently passed in Japan nowrequires that the percentage of salt used in the curing process bereduced from the typical 8 percent down to 2 percent. They came tous in need of a new process to achieve this reduction and that isexactly what we provided them with.”

When asked what advice he could give to other companies looking tobreak into the Japanese market, Mr. Caldwell stresses the importance ofaligning your company with an organization like JETRO’s. “As a smallcompany, it would have been quite difficult to gain recognition in Japan– being backed by JETRO’s reputation was a considerable asset. Theyhave been extremely generous and really did so much for us.”

Contact Info:189, de la Rivière Rd.,Martinville, QCJ0B 2A0Phone: (819) [email protected]

Contact:Gary Caldwell,President

Established:1984

Employees:4

Annual Sales:n/a

Export Sales to Japan:n/a

Products:Vegetable Starter

JETRO Services:Region-to-RegionProgram

JETRO / ICF 2001/2002 5

“It’s a catch-22,” declares Pierre Chrétien, Vice President Opera-tions, Clinical Genomics Unit at SignalGene. “When entering a newmarket, you want to target your efforts to a select group of compa-nies to maximize your resources – at the same time, being new tothat market, and unfamiliar with the companies in operation there,you want to avoid limiting your opportunities by taking too narrowan approach.”

SignalGene, a biopharmaceutical company that researches anddevelops novel therapeutics, was fortunately spared the dilemmadescribed above when JETRO contacted the company. “JETROhelped us to get in touch and to set up meetings with a Japanesetechnology development partner,” explains Mr. Chrétien.

SignalGene also attended a trade show organized by JETRO in2000 – it was there that they met with a Japanese biotech companythat was interested in engaging their technologies and capabilities.“Our discussions with this particular company eventually led to asmall project,” says Mr. Chrétien. “We’re now signed on to test oneof their technologies – a diamond chip, which is a small piece ofsynthetic material capable of binding nucleic acids.” SignalGene isinterested in testing the device with the goal of determining how itmay improve some of their own genomic technologies. In turn, theJapanese partner would be receiving an additional application fortheir product.

“Since our first contact with JETRO, we’ve found the organization’sservices to be of endless help to us – they’ve provided us witheverything from translators to logistics support,” Mr. Chrétiennotes. JETRO also furthered SignalGene’s understanding of Japa-nese business culture. “We were quite surprised at the length of timeit typically takes companies to come to an agreement – it’s verydifferent from the fast pace of deal-making in North America.”

Contact Info:8475 Christophe-ColombAvenue, Suite 1000Montreal, QCH2M 2N9Phone: (514) 850-2400Fax: (514) [email protected]

Contact:Pierre Chrétien,Vice President Operations,Clinical Genomics Unit

Established:1992

Employees:65

Annual Sales:n/a


Products:Genetic AnalysisProcesses


SIGNALGENE

JETRO / ICF 2001/2002 6

LAUZON DISTINCTIVEHARDWOOD FLOORING

Contact Info:2101 Côte des CascadesPapineauville, QCJ0V 1R0Phone: (819) 427-5144Fax: (819) [email protected]

Contact:Robert Coveney,Vice President Sales &Marketing

Established:1985

Employees:530

Annual Sales:$140 million


Products:Hardwood Flooring

JETRO Services:Housing MaterialsCentre

“LAUZON Distinctive Hardwood Flooring is a well-establishedexporter in the Asian market,” says Robert Coveney, Vice PresidentSales & Marketing. “We’ve been exporting to Japan since 1990.”

LAUZON first generated interest in its products among Japanesecompanies through Canadian government contacts who arrangedbusiness interviews. Interviews led to mill tours and mill tours, toorders. “As we began to grow our business in Japan, a need devel-oped to know the ins and the outs of operating there. We turned toJETRO for help,” says Mr. Coveney. “Our company gained visibil-ity through JETRO’s Housing Materials Centre, a permanentshowcase of building products, and benefited from their efforts.”

“Although we still have much to learn about the Japanese market,our experience confirms that it’s wise for a foreign company to hirea local sales representative – someone who will be there to displayproducts and offer technical advice to clients. We found JETRO’sinvolvement very helpful in positioning our company in the Japa-nese business community.”

In his export adventures, Mr. Coveney has discovered that flooringand clothing styles have much in common – both are subject to thewhims of fashion. “What works in Canada, does not necessarilywork in another country,” he admits. “We’ve found that markettrends can sometimes be a challenge – we have to stay on top ofJapanese trends and make sure that we understand what Japaneseclients are looking for.”

Mr. Coveney is clear about LAUZON’s future goals for export toJapan. “Our efforts will be concentrated on generating increasedpublic, contractor and architect awareness of our product – and, ofcourse, on negotiating more contracts.”

JETRO / ICF 2001/2002 7

WINSIRE ENTERPRISES /MEGAPRO TOOLS INC.

Contact Info:5492 Production Blvd.,Unit #5Surrey, BCV3S 8P5Phone: (604) 522-3652Fax: (604) [email protected]

Contact:Hermann Fruhm,President

Established:1994

Employees:3

Annual Sales:n/a


Products:Retracting Screwdriver

JETRO Services:Senior Trade Advisor

“It drives people crazy when they’re working with a screwdriver andthey can’t find the right bit – you know you have it somewhere, butyou can’t locate it,” says Hermann Fruhm, President of MegaPro ToolsInc., a company that designs and manufactures screwdrivers withretractable cartridges. Mr. Fruhm knew that there must be a way tomake bit selection easier and faster, and wanted to create a perfectscrewdriver which does just that. Carving the original MegaProprototype screwdriver from a block of wood, Mr. Fruhm has sincehelped out fellow handymen the world over.

MegaPro’s retracting screwdriver has been a big hit in Japan since1999 – the year MegaPro began exporting the product to Japan.Contributing to MegaPro’s early success was the company’s access toJETRO resources. “Their library and directories helped us to learnabout Japanese companies that MegaPro might do business with,”says Mr. Fruhm. “We left promotional materials and contact informa-tion at the JETRO offices and, in turn, received inquiries from inter-ested Japanese companies.”

After lengthy discussions with a number of Japanese companies,MegaPro secured a deal with YKO Hiroshima Inc. – a Japan-basedcompany who will now distribute the MegaPro screwdriver in theAsian market. “We just sent another shipment of our drivers out toYKO last week,” Mr. Fruhm says, “and we hope to get another oneout soon.”

“Exporting your product to different countries can be an educatingexperience,” explains Mr. Fruhm, “Based on some test marketing wecarried out, we found that the handle of our screwdriver was awk-wardly large for consumers in Japan. We are currently redesigning ahandle with a smaller diameter.”

Having worked in the Japanese market for two years, Mr. Fruhm hasgained invaluable knowledge about exporting abroad: “You reallyneed to listen to your customers and consider their feedback – afterall, without them, you really wouldn’t have a market. We have toremember that ‘the customer is always king’, mastering that – you arealmost guaranteed success.”

JETRO / ICF 2001/2002 8

AQUA-PLANT CONSTRUCTION CO. LTD.

“Initially we wanted to bring Japanese technologies to Canada,” saysRobert Wyckham, Manager of Marketing and Sales of Aqua-PlantConstruction Co., Ltd., an environmental company that specializes intreating waste water. “As it turns out however, we discovered it wasmore efficient for us to export Canadian technologies to Japan. Sothat’s what we did.”

In 1999, at JETRO’s Import Fair: Environment Japan, Aqua-Plantmet a number of Japanese contacts who were interested in theirtechnologies – in particular, that of arsenic removal from groundwater. After a series of meetings, a deal was signed between Aqua-Plant and Japanese company Sanix. “We’ve installed an arsenictreatment centre into a sports facility for Sanix,” Mr. Wyckhamexplains.

“They put on the most valuable trade shows,” Mr. Wyckham says ofJETRO. “The one in 1999 helped us to strike a deal and the one weattended in 2001 has brought us many contacts.” Aqua-Plant hassince been busy doing a variety of projects for a number of differentcompanies. “We are looking forward to bringing more of our tech-nologies to Japan,” says Mr. Wyckham, when asked about his futureexporting plans.

Mr. Wyckham’s advice to other companies interested in exporting toJapan is to recognize the importance of patience and, oddly enough,the metric system! “It can take a long time for everything to finallycome together – the Japanese take their time in examining everydetail of your company. Nothing can come as a result of your effortswithout the requisites of time and patience.” To his point about themetric system’s importance, he adds: “the Japanese are accustomed toit – save yourself a lot of time and confusion by adapting to it before-hand.”

Mr. Wyckham has spent a lot of time in Japan and urges others to dothe same. “Because there are so many people in such a small area,you can actually feel the energy emanating from the people aroundyou – it’s such an indescribable feeling, something I haven’t experi-enced anywhere else.”

Contact Info:329-1508 West BroadwayVancouver, BCV6J 1W8Phone: (604) 734-3514Fax: (604) [email protected]

Contact:Robert Wyckham,Manager ofMarketing and Sales

Established:1993

Employees:3

Total Annual Sales:n/a


Products:Wastewater TreatmentTechnologies

JETRO Services:Environment JapanTrade Show

JETRO / ICF 2001/2002 9

AXYS ANALYTICAL SERVICES LTD.

Contact Info:P.O. Box 2219, 2045Mills RoadSidney, BCV8L 3S8Phone: (250) 655-5800Fax: (250) [email protected]

Contact:Dave Hope,President

Established:1974

Employees:100

Annual Sales:$5-10 million


Products:Environmental(Dioxin and PCB)Testing Services


Axys, a full-service laboratory specializing in dioxin and PCBanalyses, has been doing business in Japan since 1999 and itwas at JETRO’s Import Fair: Environment Japan that AxysAnalytical Services Ltd. first broke into the Japanese market.“JETRO not only allowed us to participate, they provided uswith translators and did all our advertising and publicity – forthat we are really grateful,” says Mr. Hope, President of Axys.

The novelty of the environmental field in Japan has contrib-uted to the success that Axys has experienced there. “There isso much potential in Japan, and since Japanese companies arejust starting at this business, Axys wins many of the jobs thatthey are not yet comfortable performing,” explains Mr. Hope.“It’s been great – although on the flip side, since it is such anew industry, we really have to work to prove ourselves.”

When asked, Mr. Hope enthusiastically provides some advicefor companies interested in exporting to Japan. “Make use ofall the free services out there: JETRO, the government and theembassies – all are there to help,” he says. “Associate yourcompany with an organization that will lend your companycredibility in Japan – being supported by JETRO really en-couraged Japanese companies to pay attention to us.”

Currently, Axys limits its services to two environmental compa-nies in Japan, however, as the environmental field develops,Axys plans to expand into new areas of testing and manage-ment. “In the near future, we hope to start up some jointventures,” Mr. Hope says optimistically. “A good thing ishappening, and it’s due in large part to JETRO!”

JETRO / ICF 2001/2002 10

BALLARD POWER SYSTEMS INC.

Over the past few years, Ballard Power Systems, a world leader in fuel celltechnology, has actively developed relationships in the Japanese market in a varietyof industries including transportation, electronics, telecom and others. In addition,Ballard has formed a jointly-owned company, EBARA BALLARD, with its jointventure partner in Japan, EBARA Corporation. EBARA BALLARD is working toidentify opportunities for the use of fuel cell products in stationary and portableapplications ranging in power from 1 kilowatt to 250 kilowatts. For Ballard thechallenge of entering the Japanese market with groundbreaking technology hasbeen strongly supported by EBARA Corporation. Ballard is also working withTokyo Gas and Osaka Gas, two leading developers of fuel processors who are alsodistributors of gas and gas appliances in Japan’s two largest cities.

In seeking new opportunities, Ballard was interested in Japan because of its largedomestic market and its role in international markets. With its high cost of energy,Japan has a strong desire for new energy technologies that makes fuel cells and theircogeneration attributes a highly attractive option. There are broad opportunities forapplications in transportation, stationary and portable markets. Ballard is currentlydeveloping three products that will meet the needs of the Japanese marketplace. A 1kilowatt cogeneration stationary system for the Japanese residential market is beingdeveloped through EBARA BALLARD. Ballard has also promoted its Nexa™power module, a 1.2 kilowatt DC portable power product, to the Japanesemarketplace and the company continues to work with its Japanese customers ontransportation applications. In addition, one of Ballard’s 250 kW stationarygenerator is undergoing field trials with Nippon Telegraph and Telephone in Tokyo,Japan.

In 2001, with the assistance of JETRO, Ballard participated in the EnvironmentJapan trade show. Before and during the show, JETRO supported the company’sinterface with the Japanese media and coordinated with the Canadian Embassy inJapan to support tradeshow activities. Ballard had a strong presence at the show,and received much interest and significant publicity. John Harris, Vice President,Marketing and Sales, said, “The support given by JETRO was instrumental in oursuccess at Environment Japan.”

For companies considering expansion in Japan, Harris notes that the market isintensely competitive, and that Japanese consumers demand very high quality,performance and durability. Companies must pay close attention to the needs of theJapanese market and the voice of the Japanese customers to ensure that products areof the highest quality and are adequately supported by customer service. Essentialto developing a new technology is requirements and applications feedback. TheJapanese market provides this function.

Looking ahead, Ballard expects to build on its well-established partnership withEBARA Corporation for short and long term strategic projects in Ballard’s targetmarkets. For transportation markets, Ballard strives to work more closely with itsexisting partners and customers such as Honda, Nissan and Mazda and willcontinue to investigate new Japanese automotive customers.

Contact Info:9000 Glenlyon ParkwayBurnaby, BCV5J 5J9Phone: (604) 454-0900Fax: (604) 412-4700www.ballard.com

Contact:Marketing Department

Established:1979

Employees:~ 1,400

Annual Sales:In 2001, Ballard receivedorders totaling US$157million.


Products:Carbon Fiber Products,Electric Drives, FuelProcessors, PEM Fuel Cells,PEM Fuel Cell Engines andSystems, Power Electronics.


JETRO / ICF 2001/2002 11

ENVIROMETAL TECHNOLOGIES INC.

Contact Info:745 Bridge St. W., Suite 7Waterloo, ONN2V 2G6Phone: (519) 746-2204 ext.235Fax: (519) [email protected]

Contact:Stephanie O’Hannesin,Principal

Established:1992

Employees:7

Annual Sales:1.2 million


Products:Patented Technology forGround WaterRemediation

JETRO Services:Import ProductSpecialist Program, IJSP

“Although our company had an initial contact in Japan, the economicdownturn there made it difficult for us to make progress in 1999,” saysStephanie O’Hannesin, Principal for EnviroMetal Technologies Inc.,developer of a patented technology for the clean-up of contaminatedground water. “JETRO helped us out immensely in 2000 by representingour technology at an environmental exposition last spring, as part of theirImport Product Specialist Program.” She continues: “There was appar-ently a lot of interest expressed at the show because JETRO returned toCanada with several contact names of potential clients.”

Following EnviroMetal’s successful showing at the environmental exposi-tion, the company was then chosen to participate in JETRO’s Invest inJapan Study Program – a program that brought selected foreign environ-mental companies and Japanese trade specialists together in Japan for a10-day visit to expose the companies first hand to Japanese marketconditions and trends. Additionally, over the 10-day period, unscheduledtime was used for business appointments for companies like EnviroMetalto meet potential Japanese partners.

“IJSP was wonderful and so well organized,” Ms. O’Hannesin says appre-ciatively. “It was a delightful trip with overwhelming hospitality. JETRO’sresources are amazing,” she declares.

The story of EnviroMetal’s initial interest in exporting to Japan has to dowith the country’s growing movement toward environmental responsibility.Ms. O’Hannesin explains that Japan is looking to clean up its groundwater and will most likely do so within the period before EnviroMetal’s20-year patents expire.

EnviroMetal garnered a lot of interest from Japanese companies and in theNovember 2001 signed a joint exclusive license with Kurita Water Indus-tries Ltd. and Dowa Mining Co., Ltd. to market and implement thepatented technology in Japan. The clean-up technology will be applied atcontaminated sites in Japan starting in 2002.

“Exporting to Japan is a challenge,” Ms. O’Hanneson admits. “It takes along time to build relationships and to help them get comfortable withyour technology. The Japanese really like to know their prospectivepartners well – it’s a very different culture.”

JETRO / ICF 2001/2002 12

HYDROGENICS CORPORATION

Whether through a committed recycling program or by means of a strictavoidance of styrofoam, today’s citizens the world-over are attempting topreserve the earth by conducting themselves in an environmentally friendlymanner. As a progressive company, Hydrogenics shares their aspirations.Hydrogenics designs and builds fuel cell systems for power generation aswell as equipment for fuel cell testing and diagnosis. Fuel cells, whichconvert chemical energy from hydrogen and oxygen into electrical energyto produce an electrical current, are a very clean and safe form of energy.

Hydrogenics began exporting fuel cells and fuel cell test stations to Japanin July 2000, and since then, has seen interest in its technologies blossom.Hydrogenics was first approached by Toyota Tsusho, a Japanese tradingcompany, who expressed interest in the fuel cell technology. “When theycame to us we really didn’t know too much about the Japanese market,”explains Alex Beaudet, Director of Hydrogenics’ Japanese Office, “but acall to JETRO, and Hydrogenics was quickly equipped with an Advisor onInvestment in Japan and office space in Japan at its Business SupportCentre. They were a phenomenal help.”

“When a company moves into a foreign market, there is so much to know– it can be overwhelming,” says Mr. Beaudet. “ JETRO however, madethe process easier by providing us with numerous contacts and unlimiteduse of their library which enabled us to quickly understand the culture andwhat our company needed to do to see success in Japan. They provide anunparalleled wealth of free resources that companies interested in exportto Japan should definitely take advantage of.”

Mr. Beaudet urges Canadian companies to not feel intimidated by Japan.“Many people think that Japan is already too far advanced technologicallyand, that Canadian products or services must be too basic to competethere,” he says. “In fact, huge potential exists for Canadian companies inthe Japanese market.”

Hydrogenics anticipates a continuation of the success it has seen in thepast few years. Developing marketing plans, advancing fuel cell technologyand building up products to market in Japan, are just a few of the thingsthat will keep Hydrogenics busy in the near future.

“There is an intensity in Japan that defies description,” says Mr. Beaudet.“If you thrive in activity-filled environments, you’re fortunate. You’ll find itexhilarating rather than exhausting.”

Contact Info:5985 McLaughlin RoadMississauga, ONL5R 1B8Phone: (905) 361-3660Fax: (905) [email protected]

Contact:Alex Beaudet,Director of Japan Office

Established:1995

Employees:160

Annual Sales:n/a


Products:Fuel Cells,Fuel Cell Test Stations

JETRO Services:Advisor on Investmentin Japan, BusinessSupport Centre

JETRO / ICF 2001/2002 13

LORD AND PARTNERS LTD.

Contact Info:9-741 Muskoka Rd.#3 NorthHuntsville, ONP1H 2L3Phone: (705) 788-1966Fax: (705) [email protected]

Contact:Barry Young,President and CEO

Established:1990

Employees:15

Annual Sales:n/a


Products:EnvironmentallyResponsible Solventsand Cleaners

JETRO Services:Environment JapanTrade Show, ImportProduct SpecialistProgram

Barry Young, President and CEO of Lord and Partners Ltd., a manufacturer ofenvironmentally responsible solvents and cleaners, speaks enthusiastically of theservices JETRO has provided to his company. “They’ve been most kind. Whenthey invited us to attend NEXPO 2000 in Japan, as part of their Import ProductSpecialist Program, they paid for our booth, shipment of our materials and eventranslators while we were there,” he says appreciatively.

“When Japanese company executives came by our booth, the gracious translatorswere there to explain our products. In addition, JETRO had translated our productinformation onto a handout for the Japanese executives to take away with them.JETRO’s people really extended themselves trying to help us,” Mr. Young explains.

Lord and Partners first became interested in exporting its environment friendlyproducts to Japan due to the country’s leadership in environmental technology andJapan’s push toward environmentally responsible practices. “The country isextremely clean, having resolved many problems Canada hasn’t even begun toaddress,” says Mr. Young. In addition, the company was compelled to seek businessin Japan because of the country’s dense population – “more people in Tokyo than inall of Canada,” Mr. Young points out.

Because of their wealth of experience in the field, Mr. Young finds the Japanese tobe more sophisticated than North American clients. “The Japanese executives askmore questions and better technical questions,” he explains. “For example, they askme questions about ingredients even before I have a chance to present the informa-tion to them. They’re very inquisitive and extremely well prepared,” he saysadmiringly.

While Mr. Young finds the preparedness and high quality standards of the Japanesechallenging, he welcomes it. “Their standards are extremely high, it’s true, andCanadian businesses will be challenged by them but it’s a positive feature of theJapanese because it leads them to realizing a healthier and safer work environment.”

Upon returning from JETRO’s Import Fair: Environment Japan 2001 in Novem-ber 2001, Lord & Partners signed an agreement with a major trading company inTokyo, Japan – Sceti Co. Ltd. – to import, distribute and sell Lord & Partners’environmental products throughout the country to the industrial, automotive, andmarine business sectors as well as to government clients at the local, provincial andnational levels. In addition to this considerable success, Lord & Partners is currentlyin talks with another major distributor who supplies product to retailers throughoutJapan.

In terms of advice for other companies considering exporting their products toJapan, Mr. Young advocates patience and perseverance. “The Japanese go throughstructured channels and systems much more so than their Canadian and U.S.counterparts,” he says. Whereas Canadian distributors might act as importer andwholesaler as well, Japanese culture and the country’s dense population favours aseparation of duties – it’s a slower process that demands patience and perseverance.”

JETRO / ICF 2001/2002 14

NAPIER ENVIRONMENTALTECHNOLOGIES INC.

Napier Environmental Technologies Inc. develops environmentally friendlyalternatives to hazardous chemicals used in industry. Formed in 1990, Napier hasinvested considerable resources in researching, developing and bringing to market arange of sophisticated de-coating chemicals. The products have been extensivelytried and tested in several industries and have surpassed the expectations ofcustomers. Now, as Napier opens up new markets through a series of strategic globalalliances, it is poised for considerable growth in the forthcoming years.

With a confirmed distribution agreement signed in the past year, Napier has foundsuccess in exporting its chemical paint strippers to Japan. The paint strippers arebased on a revolutionary new technology called SARA Technology, which has beendeveloped and patented by Napier worldwide. The technology utilizes the physicalforces generated by chemical reactions, to break the adhesive bond between thepaint and the substrate. In addition to being extremely effective on high perform-ance coatings, the strippers are worker safe and environmentally friendly.

Following Napier’s first trade show in Japan, JETRO, through the Import ProductSpecialist Program, provided the company with the opportunity to exhibit atNEXPO in Tokyo, allowing them to expand their base of contacts. Napier recom-mends that other companies considering export to Japan should utilize JETRO’sassistance and its associate organizations to help move their program forward muchfaster.

In terms of what makes Japan an attractive market for export, Napier conveys that itprovides an ideal mix of marketing opportunities to make their technology success-ful, including Japan’s high level of concern for the environment, and worker healthand safety; a high cost of labour; and the country’s willingness to accept newtechnologies and techniques.

Napier did run into a few challenges with exporting to Japan. It took time to findthe right partner for distribution and language barriers made communicationsdifficult. Also a complete lack of knowledge of distribution methods in Japancoupled with an awareness that things are done differently from North Americaproved to be challenging.

Once the company got past these challenges, they learned that the Japanese marketdiffers from other markets in that Japanese distribution networks are tightlyinterlinked and supportive of each other. Napier found that different businesshouses co-operate with each other to promote products, contrary to the company’sprevious experience in other parts of the world, where these businesses would try tocompete with each other.

Napier has future plans to increase product awareness and market penetration inJapan as quickly as possible.

Contact Info:720, Eaton WayDelta, BCV3M 6JPhone: (604) 526-0802 ext. 2429Fax: (604) [email protected]

Contact:Vinod Jhamb

Established:1990

Employees:n/a

Annual Sales:n/a


Products:Chemical Paint Strippers

JETRO Services:Import ProductSpecialist Program

JETRO / ICF 2001/2002 15

Contact Info:579 Le Breton StreetLongueuil, QCJ4G 1R9 Phone: (450) 646-7878Fax: (450) [email protected]

Contact:Normand Bernier,Special Consultant

Established:1985

Employees:70

Annual Sales:n/a


Products:Environmental(Dioxin and PCB)Testing Services


“With one deal sealed and a second on the way, Sanexen is experienc-ing great success in the Japanese market,” says Normand Bernier,Special Consultant to Sanexen. Sanexen, a full service environmentalwaste management company, has been involved with Japan-basedcompany Ebera since 1999 and is currently in negotiations withanother company.

In 1995, Sanexen presented a paper on waste management at aconference in Vancouver which was attended by several Japanesecompanies. As a result of the conference, several of them begantalking with Sanexen. In the end, it was Ebera, one of Japan’s largestenvironmental companies, that struck a deal. Sanexen provided Eberawith knowledge of PCB testing. As the environmental field continuesto develop, Sanexen and Ebera continue to work together at adaptingthe PCB testing technologies. Sanexen then sought out JETRO’sservices to further establish their company in Japan. “The two bestthings about JETRO are their wonderful library and their representa-tives in Japan – they were exceptional at providing us with guidance,”says Mr.Bernier.

When asked what tools a Canadian company should possess tosucceed in the Japanese market, Mr. Bernier responds that patienceand attention to detail are of the utmost importance. “Expect to be innegotiations for four to five years and know that they are looking forperfection.” Illustrating the distinctiveness of the Japanese andCanadian business styles, Mr. Bernier adds: “you’ll be expected toexplain your company, its products and services in fine detail to theJapanese. It’s worth the effort though – once they have fully appreci-ated your company, you’ll have the opportunity to create a businessrelationship and bond of loyalty to last a lifetime.”

Mr. Bernier also points out that a company’s credibility greatlyinfluences the way they are received in Japan. “The Japanese regardour longstanding relationship with organizations such as QuebecHydro and Ontario Hydro as a major indicator of Sanexen’s abilities.”

In 2002, Sanexen plans to finalize negotiations with a second Japa-nese affiliate – a contact that Mr. Bernier acknowledges appreciativelywas made through JETRO. “We’d like to take all the credit,” he sayslightheartedly, “but we owe many thanks to JETRO’s Montreal-Hiroshima Region-to-Region Program for this one.”

SANEXEN

JETRO / ICF 2001/2002 16

GBK CANADA

Although it may not be a popular dish in Canada, in the city ofOsaka, it’s all the rage. Aburakasu, as it is called in Japanese, isby all accounts a fragrant and flavorful dish consisting of friedbeef intestine – small intestine, that is. The exotic dish hasgarnered Japanese-based Global Kitchen and its Canadiancounterpart GBK Canada great business success.

Established in Japan in 1995, Global Kitchen began import-ing, cooking and distributing beef products. “We decided tocome to Canada and open a branch because beef here ischeaper and available in greater quantity than in Japan,” saysYuka Tsuno, Manager of GBK Canada.

“We first approached JETRO to learn about business exportingbetween Canada and Japan – JETRO’s Senior Trade Advisorwas very helpful in providing us with translators and in explain-ing business practices to us,” says Ms. Tsuno. “We also usedJETRO’s library a lot – it was perfect for finding just the rightcontacts.”

Research completed, GBK Canada was established in 2001and has been busy exporting beef products to Global Kitchenin Japan ever since.

GBK Canada was able to successfully send beef products toJapan where Global Kitchen would distribute to restaurantsand retailers. Although Global Kitchen is currently the onlydistributor in Japan, GBK Canada has another contractunderway. “We will hopefully have the contract signed by thisspring,” says Ms. Tsuno.

Contact Info:2514 Burnford TrailMississauga, ONL5M 5E3Phone: (905) 821-8313Fax: (905) [email protected]

Contact:Yuka Tsuno,Manager

Established:2001

Employees:2

Annual Sales:n/a


Products:Cooked Beef Small Intestine


JETRO / ICF 2001/2002 17

JOSEPH’S ESTATE WINES

Contact Info:1811 Niagara StoneRoad, RR3Niagara-on-the-Lake, ONL0S 1J0Phone: (905) 338-9072Fax: (905) [email protected]

Contact:Flord ElizLegarda-Custodio,Vice President ofExports

Established:1983

Employees:30

Annual Sales:n/a


Products:Table Wines


“Everyone enjoys the finer things in life,” says Flord Eliz Legarda-Custodio, Vice President of Exports for Joseph’s Estate Wines. Lo-cated in the heart of the Niagara wine region, Joseph’s Estate Winesattracts thousands of tourists each season – all eager to sample theestate table wines and distinctively flavored ice wine.

“We began to notice that a lot of visitors to the winery were fromJapan,” explains Ms. Legarda-Custodio, “Seeing this, a questionimmediately came to mind – why not bring our wines to Japan?”With this idea, Ms. Legarda-Custodio sought out JETRO’s servicesand began doing research on the Japanese market. “The first thingwe had to do was find statistics and background information on thewine business in Japan. JETRO’s Senior Trade Advisor was trulyhelpful in this regard.”

The next step in Joseph’s Estate Wines’ path to success in Japan wasattending a Fukuoka Prefecture trade show. There they met a leadinglogistics and distribution company in Japan. “Before we could eventhink about exporting to Japan, we had to figure out if it was logisti-cally feasible,” explains Ms. Legarda-Custodio. “It is most importantto know the essentials upfront – information such as market analysesand shipping logistics – before even attempting to negotiate withJapanese companies.”

Satisfied with their research, Joseph’s Estate Wines began exporting toJapan in September 2001. “We signed a deal with Nittsu Sanji inJapan who purchased several cases of our ice wine. They will beginmarketing our wines during their upcoming ‘gift season’ in Japan.”

When asked what advice she would give to companies looking toexport to Japan, Ms. Legarda-Custodio stressed the importance ofbuilding a good rapport. “You are unknown when you first meet aJapanese company, so it is so important to have an established organi-zation make the introduction for you – by using JETRO we wereperceived to have far greater credibility than what would have beenattributed to us had we arrived without their support.”

“Having a unique product also helps,” notes Ms. Legarda-Custodio.“If you are exporting something that they haven’t seen yet in Japan,success is bound to be a little sweeter – like our ice wine.”

JETRO / ICF 2001/2002 18

“An apple a day keeps the doctor away” – a noteworthy maxim for thehealth-minded and a well-loved slogan for members of the apple industry.Don Keddy, Director of Sales and Marketing at Leahy Orchards Inc., anapplesauce and apple snack manufacturer, reports that “business has beengreat.” Leahy’s commitment to quality and service has made them thelargest supplier in Canada, maintaining over 60% market share andproducing over 90% of all private label apple products.

Since 2001, Leahy has been exporting applesauce to Japan. Their involve-ment in the Japanese market began when they attended a gourmet foodshow organized by the Government of Quebec’s Agriculture Department.A number of Japanese companies were persuaded to come to Canada bythe Quebec Government’s Tokyo office and they were given advice andrecommendations by JETRO’s Guelph-based Agri-Food Senior TradeAdvisor at the show. It was here that Leahy met the Japanese food im-porter who would become their first distributor. After a series of discus-sions regarding the logistics, permits & licenses, and feasibility of export-ing to Japan, Leahy and the Japanese distributor came to an agreement.

Commenting on Leahy’s business practices in Japan, Mr. Keddy discloses:“out of loyalty and a desire to maintain a strong business rapport, I amonly interested in doing business with one Japanese agent/distributor at atime.” He explains: “the Japanese culture is very much centered aroundquality and loyalty. Once a bond is formed, it has the potential to last alifetime – provided it’s properly nurtured.”

“Canadian companies should definitely try out the Japanese market, butthey shouldn’t expect results right away. Deals take at least six monthsfrom initial talks to the final distribution,” says Mr. Keddy. As eachcountry has its own set of import/export regulations, Canadian companieslooking to export to Japan should be aware of Japanese regulations rel-evant to their particular industries. “We noticed that Japan’s health andfood approval process takes much longer than it does in some othercountries,” says Mr. Keddy. “Despite differences in food regulations,Leahy has managed to adapt quickly and efficiently to business in Japan –overcoming even the cultural and linguistic barriers that exist.”

When asked what advice he might give to other companies looking tocrack the Japanese market, Mr. Keddy advises: “Take the time to select anagent that fits your needs and knows the market. Also, be patient. Notonly does the approval process take a lot of time, effort and research, butthings like difference in time zones can make getting or giving informationa week long process. A reliable email system is an absolute necessity. Ithink that’s the best advice I could give to a company.”

Contact Info:1772 Route 209,Franklin Center, QCJ0S 1E0Phone: (514) 827-2544Fax: (514) [email protected]

Contact:Don Keddy,Director of Sales andMarketing Export,Private Label andFoodservice

Established:1980

Employees:160

Annual Sales:$45-50 million

Export Sales to Japan:$75,000 - $100,000

Products:Applesauce

JETRO Services:Senior Trade Adviso�

LEAHY ORCHARDS INC.

JETRO / ICF 2001/2002 19

Contact Info:994 Hargrieve Rd.London, ONN6E 1P5Phone: (519) 659-1395Fax: (519) [email protected]

Contact:Kazuyo Sooudi,Representative Director

Established:1975

Employees:120

Annual Sales:n/a


Products:Long-Term HealthcareBeds

JETRO Services:Advisor on Investment inJapan

“A comfortable bed is something that we commonly take for granted,”says Kazuyo Sooudi, Representative Director of Carroll Healthcare Inc.“That is, until by reason of infirmity or old age, we become dependent onone 24 hours a day.” Since 1975, Carroll Healthcare has been designingand manufacturing long-term healthcare beds that have revolutionized themarket. From sturdy solid wood head and footboards to an adjustableheight mechanism that lowers closer to the ground than any other, CarrollHealthcare’s five bed designs take into consideration a full range of patientand caregiver needs.

Carroll Healthcare began exporting to Japan in December 2000 afterconducting an extensive feasibility study that revealed some importantfacts about Japan. “Our study told us that Japan leads the world with itselderly population, a market which is very important to us,” says Ms.Sooudi. “A healthcare conference, that we attended allowed us to speak toseveral Japanese business executives in related fields who confirmed for usthe presence of a demand in Japan for our beds.”

Upon deciding to pursue the Japanese market, Carroll Healthcare soughtout JETRO’s assistance. “We knew virtually nothing about doing businessin Japan,” explains Ms. Sooudi. “JETRO had to teach us all the basics ofconducting business with the Japanese. JETRO’s Advisor on Investment inJapan was tremendous – we couldn’t have moved into the Japanese marketwithout his help.”

Carroll Healthcare is currently looking to expand its presence in Japan.“Ideally, we’ll convince many more hospitals and long-term care facilitiesto use our beds – it’s something that we are trying to negotiate,” says Ms.Sooudi.

Ms. Sooudi cites loyalty as one of the biggest challenges to overcome whenexporting to Japan. “The Japanese people are incredibly loyal in businessrelationships – a quality that proves difficult for foreigners trying to getinto the Japanese market,” she says. “Acquiring credibility is essential tosecuring deals in Japan as is the ability to speak the same ‘language’. Farbeyond knowing the right words, it’s imperative to approach the Japanesein a manner that is respectful of their culture and business practices. Thisis something we learned from our contacts at JETRO,” Ms. Sooudi says.

CARROLL HEALTHCARE INC.

JETRO / ICF 2001/2002 20

Upon hearing of Techno Scientific’s sonic cane mobility assistive device,one imagines a high-tech toy that James Bond might play with in histwilight years – with some further explanation however, the sonic caneemerges as an exceptionally practical device used by the vision-impaired tobe made alert of obstacles located along the path ahead. “It’s really quite arevolutionary device,” says Dr. Mirek Macecek, President of TechnoScientific.

While such a universally useful device would appear to require littlelocalization, Dr. Macecek’s experience proves contrary to that assumption.“We had to modify the cane for the Japanese market,” he says. “In Japan,where streets are narrower, sound bounces everywhere – the sonic canehad to be adjusted to accommodate Japan’s crowded city environment.”

Techno Scientific spent several years in negotiations with Japanese compa-nies before seeing any contracts come to fruition. Approximately threeyears ago, the company was approached by JETRO, offering to showcaseTechno Scientific’s product in Japan, as part of its Import Product Special-ist Program. “It was from this presentation that we started to hear fromseveral Japanese companies,” says Dr. Macecek.

“Up to that point, our principle export markets had been the US andEurope,” he explains. “We recognized however the potential for us inJapan upon learning of the country’s large aging population and theconsiderable coverage the Japanese health care system provides to itscitizens.”

In order to achieve a solid understanding of the Japanese market, TechnoScientific made use of several JETRO resources – attending seminars andmaking contacts through the organization’s network.

Currently, Techno Scientific supplies its products to two different compa-nies in Japan, who in turn distribute them throughout the country. Al-though pleased with the company’s success to date, Dr. Macecek wishes tofurther promote Techno Scientific in Japan by participating in trade showsand following up with new contacts.

The advice Dr. Macecek gives to other companies interested in exportingto Japan is simple: “it’s certainly worth trying, ” he says. “Just make sureyou have a local contact like JETRO to assist you – that’s very important.”

Contact Info:13 – 231 Millway Ave.Concord, ONL4K 3W7Phone: (905) 760-1745Fax: (905) [email protected]

Contact:Dr. Mirek Macecek,President

Established:1980

Employees:20

Annual Sales:1-2 million

Export Sales to Japan:1% of sales

Products:Mobility AssistanceDevice for VisuallyImpaired

JETRO Services:Import Product Special-ist Program

TECHNO SCIENTIFIC INC.

JETRO / ICF 2001/2002 21

ADVANCED CHEMISTRYDEVELOPMENT INC.

‘Software that is so well integrated, it’s easier done than said,’ is the taglineon the website of Advanced Chemistry Development (ACD) and, itcouldn’t be more fitting for a company that takes something as complex aschemistry and makes it simple. ACD is a chemistry software companyoffering solutions that integrate chemical structures with analytical chemis-try information. ACD creates innovative software packages that providechemical research scientists with a host of services including,spectroscopic validation of structures, elucidation of unknown substances,chromatographic separation, preformulation of novel drug agents andchemical patenting and publication.

Established in 1994, ACD excelled quickly to become a leader in the fieldof scientific software for chemistry purposes. Looking to further expandits reach, ACD turned its attention toward Japan – the company’s thirdlargest market following North America and Europe. “When we decidedto break into the Japanese market we looked to JETRO to help us getstarted; they provided us with a wealth of valuable business informationregarding economic, political, technological and regulatory environmentsin Japan,” says Val Kulkov, President. “Without JETRO, our entry intothe Japanese market would have been slower, more difficult and muchmore costly.”

Mr. Kulkov offers up an important observation to companies interested inexport to the Japanese market. “The Japanese are better than foreigners atdoing business in Japan – it’s so obvious yet it’s a fact too often ignored byforeign companies trying to break into the market.” To maximize ACD’schances of success in Japan, the company sought out a Japanese partner todistribute its technology and provide assistance to its Japanese customers.

Recently ACD announced a partnership agreement with Japanese com-pany Fujitsu Limited. Fujitsu will distribute ACD’s entire portfolio ofsoftware solutions to the chemistry-based research industry throughoutJapan. This initiative with Fujitsu expands ACD’s marketing reach inJapan significantly and enhances its customer support capabilities in thismarket.

When asked about ACD’s future, Mr. Kulkov responds enthusiastically:“The company’s sales in Japan have been growing steadily since 1996 and,with our new distribution agreement with Fujitsu, we can only anticipatefurther increases in revenues.”

Contact Info:90 Adelaide Street, Suite 702Toronto, ONM5H 3V9Phone: (416) 368-3435Fax: (416) [email protected]

Contact:Val Kulkov,President

Established:1994

Employees:30

Annual Sales:n/a


Products:Scientific Software

JETRO Services:Advisor on Investment inJapan

JETRO / ICF 2001/2002 22

COLUBRIS NETWORKS

“Colubris Networks was just established in 2000 and already, it’s wellon its way,” says Pierre Cardinal, Director of Sales. You might notexpect such international success from a relatively new company or,maybe you would if that company was in the business of providingcutting-edge wireless Internet technologies. And, that is exactly whatColubris Networks does.

Colubris Networks was approached by JETRO about a year ago withpromising news. “We were told that JETRO was interested inshowcasing our technology at a trade show in Japan, as part of itsNew Business Specialist Program, and that they could put us incontact with Japanese companies who would likely be interested aswell,” says Mr. Cardinal. It was with these contacts that ColubrisNetworks began working with Japan-based companies Marubeni andRikei. To date, both companies have purchased wireless equipmentfrom Colubris Networks and are currently in negotiations to transactsecond purchases.

Mr. Cardinal observes significant differences between the Japanesemarket and other markets he’s done business in. “Much more time isneeded – while companies in other countries tend to finalize things ina matter of weeks or months, the Japanese like to take their time andmeet with you much more often,” he says. “If you’re a person wholikes traveling, it’s great – you’ll visit Japan frequently and get toknow the country and its people well.”

Having tasted success in Japan, Colubris Networks is eager to expandfurther. “We’d like to do business with more companies in Asia,” Mr.Cardinal explains: “The wireless technology is huge and Japan is agreat market for us.”

As advice to other Canadian companies looking to export to Japan,Mr. Cardinal offers his mantra. “Participate, be patient, and you willpenetrate,” he says of a market that is often described as ‘difficult toget into’. The importance of guidance is also vital to a company’ssuccess in exporting. “Colubris Networks was headed in the rightdirection but JETRO’s guidance really sped up the process for us –without JETRO we wouldn’t be this far along at this point in time.”

Contact Info:420 Armand-Frappier,Suite 200Laval, QCH7V 4B4Phone: (450) 680-1661Fax: (450) [email protected]

Contact:Pierre Cardinal,Director of Sales

Established:2000

Employees:40

Annual Sales:n/a


Products:Wireless Internet Networks

JETRO Services:New BusinessSpecialist Program,Business Support Centre

JETRO / ICF 2001/2002 23

GLOBAL GEOMATICS

“We’re able to pinpoint almost any location in theworld by means of an aerial photograph in a matter ofminutes,” says Alban Thomann, Director, BusinessDevelopment. “That’s an extremely powerful tool. Sopowerful in fact, that the mapping capabilities of Glo-bal Geomatics are employed by the US and Frencharmies – among the most sophisticated armies in theworld.”

Global Geomatics became involved in the Japanesemarket in 2000 and was able to do so with the help ofJETRO, through its Business Support Centre service inTokyo. “JETRO has been very helpful: from sourcingbusiness advisors to providing conference rooms, theyhave proved invaluable to us time and again,” Mr.Thomann says.

With JETRO’s participation, Global Geomatics wasable to establish numerous business contacts in Japan.The contacts that Global Geomatics made proved tobe quite successful. Although, an official announce-ment has not taken place, Global Geomatics has nego-tiated to be represented in Japan by a Japanese com-pany.

Based on his experiences in Japan thus far, Mr.Thomann has learned well the importance of thinkinglong-term. “There are no quick deals in Japan, trustand understanding need to be developed for relation-ships to progress – and that only happens with time.”

Contact Info:825 Querbes Avenue,Suite 200Outremont, QCH2V 3X1Phone: (514) 279-9779Fax: (514) [email protected]

Contact:Alban Thomann,Director,Business Development

Established:1989

Employees:12

Annual Sales:n/a


Products:Mapfusion - access,visualization, sharing,and distribution ofheterogeneous anddistributed geodata

JETRO Services:Export to Japan StudyProgram, BusinessSupport Centre

JETRO / ICF 2001/2002 24

KAYDARA

“If you don’t know how to use chopsticks, better that you learn,”advises Dan Kraus, Director of Business Development for Kaydara.“It’s very important to the Japanese that the Canadian businesspeople they work with understand and appreciate their culture. Tableutensils are a little thing, but the little things added up mean somuch to the success of a business relationship – to the success of anyrelationship, for that matter.”

Kaydara, a software company that creates character animation toolsfor video games and films, participates in an industry that is currentlybooming in Japan. To take advantage of the burgeoning softwaredemand there, Kaydara turned to JETRO for business advice. “Whileworking with them, we met Koei – a fellow animation company inJapan to whom we sold our 3-D animation software”.

“JETRO really helped further our business development there,” Mr.Kraus says. “Even though we had already successfully established tiesin the Japanese market on our own, they were able to carry us fartherby strengthening those existing bonds and by expanding our pool ofcontacts. We thought we knew all the relevant companies in Japanuntil they came along and introduced us to so many more.”

When entering a foreign market, Mr. Kraus believes one of the mostimportant factors to success is to be introduced by a credible, highlyregarded third party. “Being backed up by JETRO helps a lot –without their endorsement it’s difficult to get Japanese companies tolisten to your pitch.” Mr. Kraus also believes solid product knowl-edge is another key to business success in Japan. “The Japanese areextremely keen and will probably know more about your productthan you would expect. You have to be prepared – know whom youwant to sell your products to and why,” he advises.

When asked about Kaydara’s future prospects in Japan, Mr. Krausexudes confidence in his answer. “Japan’s unwavering commitment toand fascination with technology keeps us hopeful. We are planningto expand business there by nurturing our current relationship withKoei and by actively pursuing new potential clients using JETRO’sextensive network of business contacts.”

Contact Info:4428 Boul. St. LaurentSuite #300Montreal, QCH2W 1Z5Phone: (514) 842-8446Fax: (514) [email protected]

Contact:Dan Kraus,Director of BusinessDevelopment

Established:1993

Employees:70

Annual Sales:n/a


Products:3-D animation software

JETRO Services:Japanese IT Mission toCanada

JETRO / ICF 2001/2002 25

PACIFIC LINKS

“Pacific Links was named to reflect the company’s mission to be thebridge between Canadian and Japanese technological companies,” saysSteve Fry, President of Pacific Links, “by providing the full range ofservices needed by Japanese companies wanting to do business in Canadaand by Canadian companies wanting to do business in Japan.”

Pacific Links’ most significant client to date is Mitsui Canada, a Canadiansubsidiary of a Japanese company looking to establish a new IT solutionsgroup in Canada. The company’s goal is, more specifically, to provide ITconsulting services to Japanese companies in the Toronto area based onthe model of their successful IT solutions division in Japan.

With his own extensive experience in the IT industry in both Canada andJapan, Mr. Fry is confident about the contribution Pacific Links will makein helping Mitsui achieve its goals in Canada. “Pacific Links has beenhired to play a key role in this project owing to our background,” he says.Pacific Links is providing a wide range of services that include establishingpartnerships between Mitsui Canada and local solution providers, helpingto develop a marketing plan and providing ongoing support during thesales and development process as a technical advisor.

Interestingly, the establishment of Pacific Links and the company’s rela-tionship with Mitsui was born out of Mr. Fry’s participation in a JETROIT Mission held in October 2000 which he then, in fact, attended topromote a now separate Internet development services company calledEpicent.

“Last year in October, when I gave a speech at the IT Mission on behalfof Epicent, among the many people I met were representatives of Mitsui,”Mr. Fry recalls. “At the time, there were no immediate opportunities towork together but we fortunately kept in contact and, in April 2001, thatopportunity came when Mitsui decided to move forward in establishing aToronto-based IT solutions group.”

Mr. Fry is eager to give credit to JETRO for the unfolding of these events.“I think this is an excellent example of how Canadian and Japanesecompanies can come together and find successful business opportunitiesthrough JETRO’s efforts,” he says adding: “if it weren’t for that IT Mis-sion, I never would have met with the people at Mitsui.”

In addition to establishing Mitsui in Canada, Mr. Fry is also workingwith local Canadian software companies to prepare their product forJapan. Through Pacific Links’ network of industry contacts in Japan, thecompany provides business development services by arranging introduc-tions to potential Japanese partners and negotiating distribution agree-ments. Pacific Links also specializes in software internationalization andlocalization.

Contact Info:10 Yonge Street,Suite 3507Toronto, ONM5E 1R4Phone: (416) 899-1680Fax: (416) [email protected]

Contact:Steve Fry,President

Established:2001

Employees:3

Annual Sales:n/a


Products:Canada-Japan BusinessServices


JETRO / ICF 2001/2002 26

PATTERN DISCOVERYSOFTWARE SYSTEMS LTD.

“They are astute matchmakers and extremely professional,” saysWade DesRoches, President and CEO of Pattern DiscoverySoftware Systems Ltd. of his involvement with JETRO. PatternDiscovery, a company that creates unique software technologiesfor a number of different uses, has been exporting financialservices software to Japan since early 2001.

“JETRO introduced us to Japan-based Axiom and, from thatintroduction, a business relationship grew,” says Mr. DesRocheswhen asked how Pattern Discovery began doing business withJapanese companies. Axiom, a company that develops biosen-sor equipment, uses software created by Pattern Discovery in itsoperations. Although the two have only been working togetherfor a year – it has been a year of great success.

To illustrate his experiences in developing new business inJapan, Mr. DesRoches says: “Patience is a necessary virtue –negotiations with Japanese companies tend to take some time.”Mr. DesRoches notes however that there are exceptions to therule. “Our contract with Axiom came so quickly – it was asurprise and most certainly a welcome exception to the rule.”

Although Pattern Discovery has no immediate goals to seekbusiness in Japan beyond its relationship with Axiom, PatternDiscovery maintains an optimistic attitude to doing businessabroad. “When you are pitching a tangible product like oursthat is to a large extent self-explanatory, differences in languagedon’t significantly impede business relations – language actuallybecomes secondary.”

Contact Info:550 Parkside Drive,Unit B9Waterloo, ONN2L 5V4Phone: (519) 888-1001Fax: (519) [email protected]

Contact:Wade DesRoches,President and CEO

Established:1997

Employees:20

Annual Sales:n/a


Products:Financial Software


JETRO / ICF 2001/2002 27

SpiderSoftware, a developer of content acceleration technologies, isbasking in their recent successes. As a relatively young company,SpiderSoftware has been doing tremendously well. “In the past fewmonths, we have seen a lot of exciting movement,” says BrianCraddock, Vice-President of Sales at SpiderSoftware.

“We really wanted to break into the Japanese market,” says Mr.Craddock, “so we teamed up with JETRO and our Asian representa-tives, NewQuest Capital, to help us find potential contacts in Japan.”After JETRO showcased its products at PC Expo in Tokyo last year aspart of its New Business Specialist Program, SpiderSoftware met thekind of Japanese companies it had been looking for.

In December 2001, SpiderSoftware announced a distribution part-nership with Marubeni Solutions Corporation, one of the largestresellers of networking solutions in Japan. Based in Tokyo, with officesacross Japan, Marubeni will distribute SpiderSoftware’s technologies.

“Japan is one of the most technologically sophisticated countries inthe world with the highest number of Internet users in Asia. Thisrequires Japanese companies to adopt leading Internet infrastructuresolutions – like the ones we provide,” says Mr. Craddock. “Ourpartnership with Marubeni is critical to bringing SpiderSoftware tothe Asian market.”

“You have to be tenacious, keeping in mind that the end result willbe well worth the energy you expend upfront,” advises Mr. Craddock,urging Canadian companies to be realistic in their forecasting. De-spite the economic climate, drawn-out negotiations, and the longselling cycle, Mr. Craddock recommends companies look into export-ing to Japan, “It’s a really favourable place for Canadian companies –especially in the high-tech industry.”

Japan has seen huge growth in the e-commerce industry in the pastyear and estimates it will grow to more than $53.3 billion by thebeginning of 2002. Given SpiderSoftware’s strong ties withMarubeni, SpiderSoftware is poised to reap the benefits of Japan’s e-commerce explosion.

SPIDERSOFTWARE

Contact Info:512-1529 West 6th Ave.Vancouver, BCV6J 1R1Phone: (604) 637-0200Fax: (604) [email protected]

Contact:Brian Craddock,Vice President of Sales

Established:2000

Employees:20

Annual Sales:n/a


Products:Server Solution Software

JETRO Services:New Business SpecialistProgram

JETRO / ICF 2001/2002 28

BROOKDALE INTERNATIONALSYSTEMS INC.

Brookdale, a DuPont company, is a world-leading designer andmanufacturer of respiratory protective escape devices. One device inparticular – a device resembling a pop can attached to a hood – hasrevolutionized fire safety practices in Canada and around the world.“Our product is mainly used in office buildings and high rises – itprovides up to 20 minutes of filtered air, and allows people to getdown stairways, avoiding smoke inhalation,” explains Mr. McCleery,Account Executive, Asia Pacific.

Brookdale markets its award-winning products internationally, withover 250,000 units sold in over 40 countries around the world.

Discussions about exporting to Japan began in 1995, but it wasn’tuntil 2001 that Brookdale’s exporting business really heated up. “Wehad a few small orders over the past few years, but it didn’t gain realmomentum until last year when we signed a deal with Koatsu Co.,Ltd. in Japan, giving the company exclusive distributing rights to ourproduct in Japan,” explains Mr. McCleery.

Mr. McCleery joined Brookdale two years ago, to head up the Asianmarket division. Having remembered hearing about JETRO, Mr.McCleery was quick to contact their Senior Trade Advisor in order tolist Brookdale in JETRO’s Import Business News: “From this freepublicity we began to receive a number of calls from Japanesecompanies who wanted to meet with us.” Mr. McCleery continues,“I’ve book-marked JETRO’s web address as one of my favourites – Ireview it regularly to see what trade shows or seminars are comingup.”

Although business is booming for Brookdale – the company is notcurrently pursuing any new contacts in Japan. “From time to time,we get calls from Japanese companies interested in our product –when this happens, we immediately redirect them to Koatsu,”explains Mr. McCleery.

Mr. McCleery’s advice to Canadian companies intending to export toJapan is to pay a personal visit. “Meeting potential Japanese partnersis critical to your working relationship – no quantity of emails orphone calls can substitute the learning you gain from a face-to-facemeeting. Personal interaction teaches you so much more about acompany and its lines of business.”

Contact Info:1-8755 Ash StreetVancouver, BCV6P 6T3Phone: (604) 324-3822Fax: (604) [email protected]

Contact:Patrick McCleery,Account Executive,Asia Pacific

Established:1990

Employees:35

Annual Sales:n/a


Products:Fire Safety PersonalEmergency EscapeSmoke Hoods

JETRO Services:Senior Trade Advisor,Import Business News

JETRO / ICF 2001/2002 29

WHAT IS JETRO/ICF?

JETROThe Japan External Trade Organization (JETRO) is a non-profit,government-related organization dedicated to promoting mutu-ally beneficial trade and economic relationships between Japanand other nations. Headquartered in Tokyo, JETRO has a net-work of 38 offices in Japan and 80 overseas offices located in 59countries.

JETRO has 3 offices in Canada – in Toronto, Montreal andVancouver – as well as two Senior Trade Advisors and anAdvisor on Investment in Japan. Working closely with all levelsof government and industry organizations, JETRO’s activitiesin Canada are designed to promote two-way trade andinvestment partnerships between Canadian and Japanesecompanies.

ICFFormed in 1993, the Canada-Japan Industrial Co-operation(ICF) was established upon the initiative of JETRO for thepurpose of strengthening industrial co-operation betweenCanadian and Japanese enterprises and facilitating thecollaboration of relevant government offices in both Canadaand Japan.

The ICF is comprised of the Canadian Chamber ofCommerce, Canadian Manufacturers & Exporters (formerlyAlliance of Manufacturers & Exporters Canada), the TorontoJapanese Association of Commerce and Industry (Shokokai)and JETRO, which acts as Secretariat to the ICF. “Ex-officio”members include, as appropriate, representatives fromAgriculture Canada, Natural Resources Canada, theDepartment of Foreign Affairs and International Trade(DFAIT), Industry Canada, and all provincial and territorialgovernments. In addition, the Canadian Council of ChiefExecutives (formerly Business Council on National Issues) actsas an Advisor to the ICF.

JETRO / ICF 2001/2002 30

ADVISOR ON INVESTMENT IN JAPANAt JETRO’s Toronto office, there is an advisor always ready to assist Canadian companieswith inquiries about direct investment in Japan, for example, market opportunities, how toset up an office, joint venture partners, licensing, taxation practice or accounting.

BUSINESS SUPPORT CENTRES (BSC)To assist foreign business people in launching their marketing efforts in Japan, JETROmaintains Business Support Centers in Tokyo, Yokohama, Nagoya, Osaka, Kobe andFukuoka. They offer up to four months of free office space. In addition, the convenientlylocated centres are staffed with on-site expert consultants who offer business informationand advice free of charge.

EXPORT TO JAPAN STUDY PROGRAM (EJSP)This program invites selected Canadian business people and trade specialists to Japan for aten-day-long visit designed to provide a first-hand look at Japanese market conditions andtrends. In addition to helping arrange individual business appointments in advance, weprovide specialized briefings by Japanese business people, importers, manufacturers andother specialists. Tours of local firms and manufacturing facilities can be arranged.

HOUSING MATERIALS CENTRESTargeted at both Japanese consumers and builders, centres in Tokyo and Osaka exhibit awide variety of housing fixtures and interior fittings from abroad. Catalogs, pamphlets andother publications cover an even broader range of items. Seminars and consulting are alsoprovided.

IMPORT BUSINESS NEWS (Yunyuu Saizensen)Senior Trade Advisors use this Japanese language monthly publication to introduce promisingCanadian products directly to Japanese importers.

IMPORT FAIRSJETRO organizes annual large-scale trade fairs in Japan for foreign products and serviceswith an emphasis on areas with excellent growth potential.

NEW BUSINESS SPECIALIST PROGRAM(formerly Import Product Specialist Program)On a periodic basis, Japanese private-sector experts on imported products are dispatched toCanada to make direct contact with Canadian manufacturers and purchase product samples,which they then represent at specially organized JETRO Import Showcases held inconjunction with major industry-specific trade fairs in Japan. These specialists are veteranJapanese business people from the private sector selected for their expertise in specificproduct areas as well as their experience in dealing with imported products.

INVEST IN JAPAN INDIVIDUAL PROGRAM (IJIP)Provides foreign companies that are ready to invest in Japan with a number of practicalservices such as introductions to advisors and specialists, assistance with market research,arrangement of meetings and organization of field trips.

INVEST IN JAPAN STUDY PROGRAM (IJSP)Designed to assist foreign companies or organizations research opportunities for investingdirectly in the Japanese market, this program includes study seminars, field trips andmeetings with potential partners.

OUTLINE OF JETRO/ICF PROGRAMS

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OUTLINE OF JETRO/ICF PROGRAMS

MARKET RESEARCHJETRO has a wide variety of market research resources for Canadian companies, fromspecific sector market reports to a database of potential Japanese importers to directoriesof trade fairs in Japan. There are also guides to Japanese business culture, videos and regularpublications about trends in the Japanese market. Much of this information can be accessedon-line and companies are welcome to send their inquiries to their nearest JETRO office.

REGION TO REGION PROGRAM (Local to Local)The Region-to-Region Initiatives program was launched in 1996 to support two-wayinternational regional development. Under the program, JETRO works with the regions todetermine their mutual needs and objectives, and then offers support for existing and newactivities. This is done mainly by conducting surveys, dispatching and receiving missions aswell as holding seminars. These efforts, coordinated through JETRO’s extensive network ofoffices worldwide, can play a crucial role in bringing regions together for investment andtechnical tie-ups, collaborative research and development, overseas procurement by Japanesefirms, and investment in Japan by foreign firms.

SEMINARS & BUSINESS FORUMSAll the JETRO offices are active in holding seminars and business forums to informCanadian companies about various aspects of the Japanese market and how to dobusiness there as well as to provide business-matching opportunities for Canadian andJapanese companies.

SENIOR TRADE ADVISORSThe function of the Senior Trade Advisors (STA) is to seek out products with potential forexport to Japan, provide one-on-one consultations, and introduce promising Canadianproducts directly to Japanese importers through the publication Import Business News.There are two Senior Trade Advisors in Canada. Please see back of publication for contactinformation and note that STAs will change in the middle of 2002 so please see websites orcontact a JETRO office for updates.

TECHNO-BUSINESS FORUMThis event is designed to explore mutually beneficial partnerships between overseas andJapanese companies, for example joint ventures and technology alliance, especially in thefields of info-tech, multimedia and electronics. Costs of exhibitor booth,accommodation in Tokyo, as well as interpreter services are paid for by JETRO. Also,seminars, presentation meetings, individual follow-up meetings with Japanese companiesand field tours to regional markets are arranged.

TRADE MISSIONSJETRO actively supports selected incoming Japanese missions to Canada and outgoingCanadian missions to Japan, in cooperation with federal and provincial governments andother organizations. For example, in 2000 and 2001, JETRO organized Japanese ITMission to Canada. In 2002, JETRO is planning to bring another IT Mission toCanada.

TRADE TIE-UP PROMOTION PROGRAM (TTPP)JETRO’s free Trade Tie-up Promotion Program (TTPP) is an innovative Internet-basedsystem that connects companies from around the world with Japanese firms interested inbusiness relationships. The new system is available in both English and Japanese, withcompanies able to establish contact with potential partners through pre-formatted e-mails.It is designed to be a one-stop shop for business-matching in a variety of categories includingthe import and export of products and parts, technology transfers and other tie-ups,investment and the establishment of offices and factories in Japan and other countries aswell as services such as translation, accounting, legal advice, consulting, advertising andmarket research. The site can be accessed at www.jetro.go.jp/ttppe/ (English) orwww.jetro.go.jp/ttppj/ (Japanese).

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JETRO Toronto has been making an annual publication called ‘Success in theMaking’ since 1995, in cooperation with JETRO Vancouver and JETRO Montreal,in order to introduce the experiences of Canadian companies that have successfullypenetrated the Japanese market and have participated in JETRO Programs. We hopeto encourage other Canadian companies to enter the Japanese market with these casestudies.

Below is an outline of the 207 Canadian companies introduced in the publicationfrom 1995 to the spring of 2002.

SUMMARY OF SUCCESS STORIES 1995 - 2002

Product Category Number Provincial BreakdownAutomotive Parts 1 Ontario – 1Biotechnology Products 2 Quebec – 2Chemical Products 1 Alberta – 1Construction & 62 B.C. – 25 Quebec – 6Housing Products Alberta – 1 Nova Scotia – 3

Saskatchewan – 1 New Brunswick – 3Manitoba – 2 Newfoundland - 1Ontario – 20

Environmental Products 11 B.C. – 4 Quebec – 1Ontario – 5 Nova Scotia - 1

Fashion Products 6 B.C. – 4 Newfoundland - 1Ontario – 1

Financial Products 1 Ontario - 1Food & 28 B.C. – 8 Quebec – 3Beverage Products Alberta – 2 Nova Scotia – 3

Saskatchewan – 1 Newfoundland – 1Ontario – 10

Furniture Products 11 BC – 2 Ontario – 4Alberta – 3 Quebec – 1Manitoba – 1

Healthcare Products 21 BC – 1 Ontario – 12Alberta – 1 Quebec – 4Manitoba – 2 Newfoundland - 1

Industrial Products 2 B.C. – 1 Ontario - 1Scientific Products 2 Ontario - 2Technology Products 43 B.C. – 11 Ontario – 23

Alberta – 2 Quebec – 7Miscellaneous Products 16 BC - 5 Quebec – 3

Alberta - 2 Nova Scotia - 1Ontario – 5

Total 207 Canada

A HISTORY OF SUCCESS

JAPAN EXTERNAL TRADEORGANIZATION OFFICES IN CANADA

JETRO Toronto181-University Avenue, Suite 1600Toronto, Ontario M5H 3M7Phone: 416-861-0000Fax: 416-861-9666E-mail: [email protected]:http://www.canada.jetro.org/toronto/http://www.jetro.go.jp (JETRO Tokyo)

JETRO Montreal1 Place Ville-Marie, Suite 1506Montreal, Quebec H3B 2B5Phone: 514-879-5617Fax: 514-879-5618E-Mail: [email protected]: http://www.jetromontreal.org

JETRO VancouverWorld Trade Centre 660999 Canada PlaceVancouver, BC V6C 3E1Phone: 604-684-4174Fax: 604-684-6877E-Mail: [email protected]: http://www.JetroVancouver.org

SENIOR TRADE ADVISORS

GuelphMr. Mitsuhiko Kushidac/o Agriculture and Agri-Food Canada174 Stone Rd. WestGuelph, Ontario N1G 4S9Phone: 519-837-5868Fax: 519-837-9782E-Mail: [email protected]

VancouverMr. Hiroshi Wakabayashic/o Canadian Manufacturers & Exporters (CME)British Columbia DivisionSuite 1330, 1100 Melville StreetVancouver, B.C. V6E 4A6Phone: 604-713-7803Fax: 604-713-7801E-Mail: [email protected]

JETRO OFFICES IN CANADA

CANADA-JAPAN INDUSTRIALCOOPERATION FORUM (ICF) MEMBERS

Canadian Chamber of CommerceDelta Office Tower, 350 Sparks St., Suite 501Ottawa, ON K1R 7S8Phone: 613-238-4000Website: www.chamber.ca

Canadian Manufacturers & Exporters (CME)(formerly Alliance of Manufacturers & ExportersCanada)One Nicholas Street, Suite 1500Ottawa, ON K1N 7B7Phone: 613-238-8888Fax: 613-563-9218Website: www.cme-mec.ca

Toronto Japanese Association ofCommerce & Industry (Shokokai)Suite 106, 1500 Don Mills Rd.Toronto, ON M3B 3K4Phone: 416-360-0235Fax: 416-360-0236E-Mail: [email protected]

JETROPlease contact JETRO Toronto as Secretariat withregard to any ICF inquiries.

ADVISOR ON INVESTMENT IN JAPAN

JETRO TorontoMr. Yoshi Ichida181 University Avenue, Suite 1600Toronto, ON M5H 3M7Phone: 416-861-0000 x237Fax: 416-861-9666E-Mail: [email protected]

Note: New Senior Trade Advisorswill be posted to Canada in the middleof 2002 so please see website or contact aJETRO office for details.

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www.canada.jetro.org

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