The company says its food helped to build the British empire

Despite its famous name and prime site in London's Piccadilly, profits at Fortnum & Mason have shrunk in five of the past eight years.

To help revive demand for its jams, teas and sauces, Fortnum & Mason is overhauling its export business.

The grocer will open its first Japanese store in Tokyo in October.

Looking abroad

It has set up a joint venture with the equally venerable 330-year-old Japanese retailer Mitsukoshi for a Fortnum & Mason Concept Shop in the food hall of the Japanese firm's flagship store. A second outlet is planned in Nagoya early next year.

Products heading for Japan Teas, including Royal Blend, Earl Grey and Wild Strawberry Preserves, including Lemon Curd, Banana, Blood Orange and Sir Nigel Vintage Chutney's, including Major Grey Mango Also horse radish and mint sauce, Christmas puddings, biscuits, cakes and scones

Last year, Fortnum & Mason ended its worldwide distribution agreements to take greater control of how and where its products are sold.

It is hoping the new strategy will bring a significant increase in turnover. In the short term, the decision hammered profits, cutting earnings in its financial year to July 2003 by 40%.

However, Fortnum & Mason points to an 8% increase in UK sales since July last year as a sign that things are looking up.

Roll out

If Fortnum & Mason's new approach proves a success in Japan, the model will be used in other regions, such as the US and Europe.

As well as offering goods imported from the UK, the Tokyo outlet will also have a Fortnum & Mason tea shop, bakery and take-away food service stocked with products adapted for Japanese tastes.

Other UK companies also have benefited from Asian sales.

Fashion group Burberry, for example, has attributed part its recovery during the past few years to strong demand for its trademark check patterns in Japan.