The fact that the Japanese economy has suffered from a recession for the past five years has not had much influence on the desire of Hershey and Nestlé chocolates to enter in the Japanese market. Japan is no longer the world's third largest economy; Japan's economic problems began in 2008 (Irwin, 2013). To enter the Japanese market these companies must understand the government and economic climate of Japan, while being aware of the taste and culture of the Japanese people. The Chocolate and Cocoa Association of Japan (CCAJ) reported in 2009 that Japan is the largest buyer of chocolate in Asia. “Japan produced 196,553 tons of chocolate with a production value of $38 million. Approximately 19,375 tonnes were imported from the United States, Australia, Belgium, China, South Korea, France, Italy and Switzerland to meet domestic demand of 212,657 tonnes” (World Cocoa Foundation [WCF], 2011). Even though Japan is going through an economic recession, its appetite for chocolate has not wavered. Declining business investment and global demand for the country's exports in 2008 was the beginning of Japan's troubles. The economy was on track for a recovery in 2009 and 2010, but an earthquake hit the country in 2011, throwing the manufacturing industry into chaos. The country rebounded in 2012 thanks to a surge in recovery spending, but slow global economic growth in the middle of that year negatively affected export demand. This decrease in demand for their exports has been further exacerbated by the fact that electricity supplies are a fraction of what they once were because the country has closed nearly all nuclear plants; this was one of the consequences of the earthquake and tsunami that damaged the Fukus... middle of paper... me for these companies to come in and claim their niche. Additionally, Japanese consumers are willing to pay big bucks for quality foods that have the added benefit of healthy ingredients; Japanese consumers attach great importance to their health. For this reason, Japan can represent a gold mine for any company marketing high-quality chocolate. The per capita chocolate consumption rate of 1.67 kilos at a cost of around $82 per person is the highest in Asia. Pensioners in Japan (pensioners over 55 years old) are the largest consumers of confectionery products, accounting for approximately 28% of consumption (World Cocoa Foundation [WCF], 2011, p. 1). Starting a profitable relationship with the Japanese people is a possibility for both Hershey and Nestlé. If studied correctly, ROI could prove to be a high return for the company's internal and external stakeholders..