The Matcha Craze: How It Started

In this episode of Culture and Code, Rei and Tara explore the unexpected global rise of matcha through the lens of Cuzen Matcha, a San Francisco-based company bringing ceremonial Japanese tea to the masses. Through this case study, they examine how innovation happens when outsiders spot opportunities in traditional markets, the role of cultural fluidity in product adoption, and how businesses differentiate in hyper-commoditized industries. The conversation reveals how sometimes the best solutions come from solving a different problem than everyone else is focused on.Key TakeawaysThe Matcha Moment: From Ceremony to Fast FoodMatcha's transformation from specialized Japanese tea ceremony to global beverage trendThe role of "fast foodification" and "TikTokification" - Instagram-friendly aesthetics driving adoptionBlank Street Coffee: 90 locations in 5 years selling customized matcha (blueberry matcha, white chocolate matcha, rocky road matcha)Why plain matcha's bitterness needed Western adaptation through sugar and customizationSpotting Opportunity: The Cuzen Matcha Origin StoryFounder Eiji Sakata (ex-Suntory) noticed matcha in multiple NYC cafes in 2014-2015Convinced Suntory to explore US matcha market, leading to Stone Mill Matcha in San FranciscoEventually launched Kuzen Matcha: "The Nespresso of matcha" - automated home preparationThe power of being both insider (Japanese tea heritage) and outsider (American market perspective)Innovation Through Cultural CrossoverWhy coffee spread globally vs. matcha's singular cultural origin (limited Japanese diaspora)The advantage of bringing local heritage knowledge to global marketsJapanese engineering mindset + American consumer needs = breakthrough productSometimes you need distance from tradition to innovate within itDifferentiation in Commoditized MarketsTwo primary levers in competitive beverage markets: customization or priceLuckin Coffee's aggressive US expansion: $1.50-$2 coffee vs. Starbucks' $7-8Strategic timing: Chinese brand entering US during politically sensitive periodDistribution as strategy: multiple locations within blocks for accessibilityThe Innovation Dilemma InsightSometimes the opportunity is "right under your nose" but requires an outside perspectiveExample: Audi engineers solving a different problem led to unexpected breakthroughThe question: When stuck, can you solve a different problem to create improvement?Breaking entrenched systems requires "diversity of ideas" and openness-----About the HostsRei Inamoto: Creative entrepreneur and founding partner of I&CO, a global innovation firm with offices in New York, Tokyo, and Singapore. Follow Rei here: Rei's LinkedInNewsletter "The Intersection"Tara Tan: Managing partner of Strange Ventures, an early-stage firm investing in the future of computing. Follow Tara here:Tara's LinkedInNewsletter: The Strange ReviewConnect &...

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