This study focused mainly on the micro-organisms that affect quality in the sake production process and the wooden barrels (Ki-Oke) in which they live, and analysed their potential to achieve economic differentiation, like terroir in wine. The French term terroir is a concept in the world of alcoholic beverages, enabling products to differentiate themselves from mass-products and rise above price competition. High-end French wines leverage terroir for economic differentiation, encouraging competition avoidance. In this paper, historical development of Saké and forests or wood are elucidated. Conventionally, Saké production involves unique elements to local or contexts including ingredients of water, micro-organism of Koji or modus of productions such as Kimoto. Furthermore, forests as surrounding environment and woods in forms of barrels serve both functional and symbolic roles. Frequently, narratives and storytelling of the Saké encompass soil, location, and climate, which parallels wine. The Japanese saké industry, mirroring high-end wine culture, relies on storytelling, distinguishing itself through rice, water, and microorganisms. Water's role, especially the transition from soft to hard water in Nada, holds historical significance. Wooden barrels (Ki-Oke) are vital, emphasizing "microorganism terroir" and region-specific differentiation, aligning saké with wine in understanding terroir. Historically, saké relied on vertical differentiation based on rice polishing ratios, akin to New World wine. Balancing scientific control with tradition presents challenges, risking homogenization of specific names. The future trajectory diverges between luxury, emphasizing microbial terroir, and potential commoditization, questioning strategic utilization of high-quality sectors and the balance between tradition and innovation. The dichotomy lies in emphasizing microbial terroir through wooden barrels or potential homogenization of specific names, raising questions about strategic utilization, balance between tradition and innovation, and unique challenges faced by the saké industry Ongoing research explores contemporary scientific techniques, fermenting wood cellulose into alcohol, potentially introducing new premium sakés celebrating the essence of forests and creating new dimension of terrior. . Such linkages to culture in ancient brewing practices provide authority and legitimacy for the to the sake.
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