OSAKA -- Major sake brewers, hit hard by the decline in domestic demand amid the recession, are expanding overseas production in hopes of cashing in on a Japanese food boom abroad.

Such major brewers as Takara Shuzo Co. and Gekkeikan Sake Co. of Kyoto, and Ozeki Corp. of Nishinomiya, Hyogo Prefecture, began production in the United States about 20 years ago.

Takara Shuzo, whose Shochikubai brand ranks fourth in the industry, said its production in the U.S. came to some 3,100 kiloliters last year, up roughly 35 percent from five years ago.

Gekkeikan also raised its U.S. output, to about 2,300 kiloliters in 1999, and said it has been enjoying double-digit growth for several years.

Sake consumption is also rising in Asia, where Takara Shuzo set up a brewery in 1995, in Beijing.

Gekkeikan said it, too, is contemplating setting up somewhere in Asia.

Meanwhile, Konishi Shuzo Co. of Itami, Hyogo Prefecture, has begun importing its sake brewed in Australia, which is fittingly named Go no Shizuku (A Droplet of Australia).

According to the company, people in their 50s and older have not taken to imported sake. However, the beverage is doing relatively well at eateries and bars catering to the younger crowd.

One reason behind the move overseas is the low cost. In some countries, the price of rice is about 20 percent lower than domestic brands.

In addition, the technology to refine rice and improve water quality has improved dramatically in recent years. In some cases, sake of similar quality to that produced in Japan can be purchased at half the price, industry observers say.

"Sake produced in Japan is too expensive overseas, and lacks competitiveness," said Koichiro Hiwara, vice president of Gekkeikan. "If we are going to get a share of the overseas liquor market, overseas production is one answer."