BUSINESS Agriculture & Foods
Business Development Outline
Mid-to Long-Term Policy / Growth Strategy
1. Strengthening Profitability
- Optimizing production system (bases and items) in the Foods field
- Optimizing production lines in the Beverages field (integrate, build new)
- Improving procurement to reduce wasted fruits and vegetables in the Retail
- Lowering logistics costs by leveraging the Group’s logistics infrastructure
- Adjusting prices in response to rising raw material prices
2. Stronger platform of the fruit and vegetable distribution/processing through capital alliances with two industry giants
- Utilizing three contract farmers and procuring channels. Also sourcing raw veggies by spreading production areas to Kyushu
- Selling the products of the three companies to each other and gaining more business partners, especially in the restaurant and readymeal market
- Enhancing the fruit vegetable distribution and infrastructure business by the three’s logistics networks and bases
- Jointly developing freshness and food processing technologies
3. Delivering products that address needs and challenges of “food”
- Expanding products for home like packaged meals and frozen veggies for convenience stores
- Full-scale entry into the frozen sweets business
- Responding to environmental needs of customers by expanding circulating containers and paper container lines
From farm to table, three companies collaborate to enhance distribution and processing platform for fruits & vegetables
In Februrary 2023, we started a three-company collaboration with VEGETECH Co.,Ltd. and DELICA FOODS HOLDINGS CO., LTD. Vegetech is a trading company specialized in fruits and vegetables for the processing and intermediate wholesaling. Delica Foods Holdings sells whole- and cut- vegetables for commercial use. With strengths of the three companies together, we will be enhancing the raw materials procurement and streamlining logistics. Through the three’s sales channels, we will bring the “food” of Hokkaido to the whole country. We will make the stronger distribution and processing platform of fruits & vegetables that connects producing areas and tables. Thereby we aim to provide a one-stop solution for food safety and security, as well as contribute to promoting local agriculture and reducing food loss.
