The Japanese food distribution network is more complex than other developed nations. This not only makes retail food prices more expensive but can make market entry for foreign companies difficult. In part demographic, cultural, economic, and institutional factors have led to the development of the existing system, and are playing a role in its change. U.S. businesses are not passive in the outcome of the future system. Japan relies heavily on food imports yet demands a high quality and stable source of supplies. Businesses that meet that demand will be an effective part of the future distribution system.