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 Takeaways

The Matcha Moment: From Ceremony to Fast Food

• Matcha's transformation from specialized Japanese tea ceremony to global beverage trend
• The role of "fast foodification" and "TikTokification" - Instagram-friendly aesthetics driving adoption
• Blank 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 customization

Spotting Opportunity: The Cuzen Matcha Origin Story

• Founder Eiji Sakata (ex-Suntory) noticed matcha in multiple NYC cafes in 2014-2015
• Convinced Suntory to explore US matcha market, leading to Stone Mill Matcha in San Francisco
• Eventually launched Kuzen Matcha: "The Nespresso of matcha" - automated home preparation
• The power of being both insider (Japanese tea heritage) and outsider (American market perspective)

Innovation Through Cultural Crossover

• Why coffee spread globally vs. matcha's singular cultural origin (limited Japanese diaspora)
• The advantage of bringing local heritage knowledge to global markets
• Japanese engineering mindset + American consumer needs = breakthrough product
• Sometimes you need distance from tradition to innovate within it

Differentiation in Commoditized Markets

• Two primary levers in competitive beverage markets: customization or price
• Luckin Coffee's aggressive US expansion: $1.50-$2 coffee vs. Starbucks' $7-8
• Strategic timing: Chinese brand entering US during politically sensitive period
• Distribution as strategy: multiple locations within blocks for accessibility

The Innovation Dilemma Insight

• Sometimes the opportunity is "right under your nose" but requires an outside perspective
• Example: Audi engineers solving a different problem led to unexpected breakthrough
• The question: When stuck, can you solve a different problem to create improvement?
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• Breaking entrenched systems requires "diversity of ideas" and openness

-----About the Hosts

Rei Inamoto: Creative entrepreneur and founding partner of I&CO, a global innovation firm with offices in New York, Tokyo, and Singapore.

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Tara Tan: Managing partner of Strange Ventures, an early-stage firm investing in the future of computing.

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