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Foreign Agricultural Service GAIN Report Global Agriculture Information Network Approved by: Date:06/07/99 Sarah D. Hanson GAIN Report #JA9092 U.S. Embassy Market Brief Japan : Food Processing Sector - Western Confectionery Products Company Profiles This report was prepared by the USDA’s Foreign Agricultural Service for U.S. exporters of food and agricultural products. This information is in the public domain and may be reprinted without permission. Use of commercial or trade names does not imply approval nor constitute endorsement by USDA/FAS. Tokyo[JA1], JA

Market Brief Japan : Food Processing Sector - Western ...Key Products % of Total Company Profile and Strategies Wholesale 46 One of the five largest confectioners in Japan, particularly

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Page 1: Market Brief Japan : Food Processing Sector - Western ...Key Products % of Total Company Profile and Strategies Wholesale 46 One of the five largest confectioners in Japan, particularly

Foreign Agricultural Service

GAIN ReportGlobal Agriculture Information Network

Approved by: Date:06/07/99

Sarah D. Hanson GAIN Report #JA9092

U.S. Embassy

Market Brief

Japan : Food Processing Sector - Western

Confectionery Products

Company Profiles

This report was prepared by the USDA’s Foreign Agricultural Service for U.S. exporters offood and agricultural products. This information is in the public domain and may bereprinted without permission. Use of commercial or trade names does not imply approvalnor constitute endorsement by USDA/FAS.

Tokyo[JA1], JA

Page 2: Market Brief Japan : Food Processing Sector - Western ...Key Products % of Total Company Profile and Strategies Wholesale 46 One of the five largest confectioners in Japan, particularly

GAIN Report #JA9092 Page 1 of 29

UNCLASSIFIED Foreign Agricultural Service/USDA

Retort Pouch, Soup, Confectionery Product Sector(s) Ariake Japan Co., Ltd. Company Name

202 Number Of Employees 3-2-17, Ebisu-Minami, Shibuya-ku Address 1 Number of Factories Tokyo 150-0022

Overseas Contact 03-3494-0990Fax Number 03-3791-3301 Phone Number

Ariake U.S.A., Inc. Email Virginia http://corporate.index.or.jp/ariake/ Web Page Address

Taisuke Tsukiashi, General Manager, Production Dept. Contact Person

Main Suppliers Sales and Net ProfitsNet ProfitsSales (Mil. \)Year

Ariake Seasoning Co., Ltd., Shin Nippon Shokuzai, Toho Co., Ltd.1,44310,4601995 Toyota Tsusho Corp., Itochu Corp.1,66611,9531996

212,6881997

Company Profile and Strategies% of Total Key Products

Founded in 1966, Ariake is a pioneer in the natural seasonings22Soups industry. Ariake stresses uniform quality in its products.52Natural Liquid Seasonings

24Natural Powdered Seasonings Ariake produces three types of seasoning: 1) essences, 1Processed Meat Products 2) yeast based, and 3) amino acid based. Essences mostly 1Others produced from beef, pork and chicken.

Customers include makers of instant noodles, processed meat, confectionery, processed foods and the food service industry. 33% of sales are to instant noodle makers, 33% go to processed Main Brands food makers and 30% go to the food service industry.

Yeast, Essence, Amino Acids, Natural Seasonings from Beef, Pork and Chicken Ariake plans to move into the food services industry and processed foods industry, while avoiding direct competition with customers. Examples of new business include out- sourcing portions of manufacturing for processed foods Main Ingredients industry.

Beef, pork, chicken, yeast, amino acids, salt, sugar, starch, flour, soybean, Ariake has established companies in China and Virginia, USA vegetable oil to both procure raw materials and sell in home markets.

Page 3: Market Brief Japan : Food Processing Sector - Western ...Key Products % of Total Company Profile and Strategies Wholesale 46 One of the five largest confectioners in Japan, particularly

GAIN Report #JA9092 Page 2 of 29

UNCLASSIFIED Foreign Agricultural Service/USDA

Western Bakery Products, Product Sector(s) Bourbon Corp. Company NameConfectionery, Snack Food, New Age Beverages

1,315 Number Of Employees 4-2-14, Matsunami, Kashiwazaki City Address 8 Number of Factories Niigata 945-0011

Overseas Contact 0257-22-2005Fax Number 0257-23-2333 Phone Number

Email http://www.bourbon.co.jp/ Web Page Address Kazuhiro Ohtake, Managing Director, Marketing Division Contact Person

Main Suppliers Sales and Net ProfitsNet ProfitsSales (Mil. \)Year

Fuji Oil Co., Ltd., Dai Nippon Printing Co., Ltd., Toshoku, 37191,2851995 Mitsubishi Corp., Mitsui & Co., Ltd.35085,4001996

36585,6891997

Company Profile and Strategies% of Total Key Products

Second-tier confectionery manufacturer with cookies and 66Confectionaries biscuits as mainstay.31Rice Cookies, etc.

3Drinks, Foodstuffs, Others Recently branched out into other edible items, such as chocolates. It is a comprehensive producer of sweets.

Petite cookies line turning into \10 billion yen business.

Marketing strategy targets female consumers. Main Brands

Bourbon has set up network of over 100 business offices Confectionery: Puchi Series (cookies and crackers), First Fashion Foods Series nationwide and salesmen regularly visit client stores. Keitai Choco Series (Kakao Power, Petit Bit), Ice Mint (gum), Communicase (gum)

Bakery Products: Lady Bake Series, Take Pack Series, Milneige, Chocolate Tarte Snack Foods: Mixed Peas, Potelka Chips, Ebi Cheese, Ebi Snack, My Melody Series Beverages: Sararacha (canned and bottled tea), Dewa and Ion Water Main Ingredients

Flour, milk and dairy products, eggs, sugar, flour, tea leaves, potatoes, shrimp, seaweed, cocoa, chocolate, mint, sesame, strawberry flavoring, xylitol, vitamin C supplement

Page 4: Market Brief Japan : Food Processing Sector - Western ...Key Products % of Total Company Profile and Strategies Wholesale 46 One of the five largest confectioners in Japan, particularly

GAIN Report #JA9092 Page 3 of 29

UNCLASSIFIED Foreign Agricultural Service/USDA

Confectionery, Retort Pouch, Product Sector(s) Ezaki Glico Co., Ltd. Company NameSoup1,703 Number Of Employees 4-6-5, Utajima, Nishiyodogawa-ku, Address15 (3 Overseas) Number of Factories Osaka 555-8502

Overseas Contact 06-477-5670Fax Number 06-477-8351 Phone Number

[email protected] Email http://www.glico.co.jp Web Page Address Naoko Matsushita, Public Relations Dept. Contact Person Phone: 06-477-8357 Fax: 06-477-8251

Main Suppliers Sales and Net ProfitsNet ProfitsSales (Mil. \)Year

Toppan Printing Co., Ltd., Dai Nippon Printing Co., Ltd.(2,256)150,2671995 Fuji Oil Co., Ltd.5,867155,4731996

2,667148,0281997

Company Profile and Strategies% of Total Key Products

One of leading confectioners with weight on chocolates and 56.3Confectionery sweets and growing into a larger general food maker.32.3Chilled Desserts

11.4Foodstuffs Diversifying by entering the retort package area.

Also produces ice cream, soft drinks and instant curry.

Has JVs in France and Thailand.

Confectionery sales rising slightly, helped by product renewal. Main Brands Chilled desserts also rallying slightly. Company is placing emphasis on rice-dishes related development, such as Donburi. Pretz (Pretzel sticks), Pocky (chocolate covered pretzel sticks), Collon (cream filled

cookie), Kiss Mint (gum), Almond (chocolate covered almonds), Panapp (ice cream), Giant (ice cream), New Wrinkle (ice cream), Glico Donburi, Glico Curry, Takikomi Gozen (seasoned rice) Main Ingredients

Chocolate, almonds, flour, sugar, starch, corn, fruits, sorbitol, meats, beef, pork curry powder, rice, mochi rice, vegetable oil.

Page 5: Market Brief Japan : Food Processing Sector - Western ...Key Products % of Total Company Profile and Strategies Wholesale 46 One of the five largest confectioners in Japan, particularly

GAIN Report #JA9092 Page 4 of 29

UNCLASSIFIED Foreign Agricultural Service/USDA

Western Bakery Products, Product Sector(s) First Baking Co., Ltd. Company NameConfectionery 1,368 Number Of Employees 2-18-2, Higashi-Rokugo, Ohta-ku Address 9 Number of Factories Tokyo 144-8558

Overseas Contact 03-3730-6100Fax Number 03-3738-0131 Phone Number

Daiichiya-Love's Bakery Inc. Email 911 Middle St., Honolulu, HI 96816 Web Page Address Tel: 808-737-5561 Yoshio Sekiguchi, Director, Production Division Contact Person

Main Suppliers Sales and Net Profits Showa Sangyo Co., Ltd., Nissho Iwai Corp., Net ProfitsSales (Mil. \)Year Warabeya Nichiyo Co., Ltd., Miyoshi Oil & Fat Co., Ltd.5044,8391995 Miyuki shoji, Osaka Shokuryo Oroshi, Otowa Sangyo, (81)43,6131996 Matsuda Sangyo Co., Ltd., Yodogawa Kako Insatsu(1,176)42,2441997 Tokyo Kaneka Shokuhin Hanbai Company Profile and Strategies% of Total Key Products

Major bakery in the Kanto area.17Breads54Pastries

Bread sales are doing poorly. Seeking to diversify into Japanese 4Western Cakes and Western cakes.8Japanese Cakes

3Cooked Rice Introduced line of eleven "Pocket Monster" products.12Purchased Foods

2Others Confectionery subsidiary is performing well.

Recently expanded its business to health food. Company's new Main Brands product includes "Quick Balance Arrange" which adds nutrition to western bakery products. Daiichi Pikachu no Pikkari Mushi Cake, Daiichi Pokemon Fuwafuwa Cup Cake,

Pokemon Nakayoshi Doughnut, Manjufukashi-pan, First Baking has started to use organic red beans (azuki) for their Japanese azuki bread (anpan).

Main Ingredients

Flour, wheat, yeast, soybeans, creams, eggs, baking oils, pre-mixes, sugar

Page 6: Market Brief Japan : Food Processing Sector - Western ...Key Products % of Total Company Profile and Strategies Wholesale 46 One of the five largest confectioners in Japan, particularly

GAIN Report #JA9092 Page 5 of 29

UNCLASSIFIED Foreign Agricultural Service/USDA

Health and Functional Food Product Sector(s) Fuji Oil Co., Ltd. Company Name Retort Pouch, Frozen Food, Confectionery

1,242 Number Of Employees 2-1-5, Nishi-Shinsaibashi, Chuo-ku Address 4 Number of Factories Osaka 542-0086

Overseas Contact 06-213-8167Fax Number 06-213-8151 Phone Number

Fuji Vegetable Oil, Inc. Email 1 Barker Ave. White Plains, New York, NY http://www.fujioil.co.jp/english/top-english.html Web Page Address Tel: 914-761-7900 Fax: 914-761-7919 Kazuto Asahara, Director of Protein Foods Division Contact Person

Tel: 078-652-3215 Main Suppliers Sales and Net Profits

Net ProfitsSales (Mil. \)Year Itochu Corp., Zenno, Miyoshi Oil & Fat Co., Ltd., Toshoku(11,007)86,8761995

3,81491,63819962,92092,4951997

Company Profile and Strategies% of Total Key Products

Japan's largest manufacturer of palm and coconut oil. Established30Oils, Fats in 1950, developed unique technologies for separation of fats.46Foodstuffs Company is now diversifying into downstream products including24Proteins edible oil, oil and fat products and soybean protein products and sells many of its products for industrial use.

Fuji Oil is strengthening ties among group companies in Japan and around the world in order to enhance product development and cost competitiveness on a global level.

Main Brands Fuji Oil group company, Fuji Protein Technologies Inc., sells isolated soy protein, structured soy protein, and textured soy Health and Functional: Soya Farm (tofu, burger, steak), The Peptide, Soy Germ Tea, protein. Markets include prepared foods, processed seafood, and Coco Slim processed meats. Group company Maruhishoku Co., produces Industrial Use: Vegetable cheese, marzipan, various fillings, ganache, frozen dough, retort packaged and frozen food products for both industrial and chocolate, ice cream coatings, molded chocolate, and couvertures home use, primarily a popular line of lightly-flavored ingredients Main Ingredients for traditional Japanese dishes. Group company, Toraku Co. produces baked puddings, flavored gelatins and jellies, soy milk, Milk and dairy product, wheat and corn for oil and fat production, other vegetables, mousse desserts, whipping cream, chilled soups and other cocoa, soy beans, palm, coconuts, seafood and meats. products.

Page 7: Market Brief Japan : Food Processing Sector - Western ...Key Products % of Total Company Profile and Strategies Wholesale 46 One of the five largest confectioners in Japan, particularly

GAIN Report #JA9092 Page 6 of 29

UNCLASSIFIED Foreign Agricultural Service/USDA

Confectionery, Western Bakery Product Sector(s) Fujiya Co., Ltd. Company NameProducts, 2,091 Number Of Employees 7-2-17, Ginza Address 9 Number of Factories Chuo-ku, Tokyo 104-8181

Overseas Contact 03-3572-7056Fax Number 03-3572-4150 Phone Number

Fujisun USA, Inc. [email protected] Email One Embarcadero Center http://www.fujiya-peko.co.jp/ Web Page Address San Francisco CA 94111 Akihiko Sato, Marketing Division Director Contact Person Tel: 415-398-3338 Fax: 415-398-6893 Main Suppliers Sales and Net Profits

Net ProfitsSales (Mil. \)Year Nissho Iwai Corp., Toyo Seikan Kaisha, Ltd., Yamato Seikan,(7,786)113,1761995 Toppan Printing Co., Ltd., Dai Nippon Printing Co., Ltd.1,011106,5611996

113102,8031997

Company Profile and Strategies% of Total Key Products

One of the five largest confectioners in Japan, particularly strong 46Wholesale in candies. Operates Western cake shops and restaurants under 52Retail direct and franchise management.2Others

Has joint-ventures with Nestle Corp. for confectionary and Baskin-Robbins for ice cream chain. Company is expanding retail store and restaurant chains.

Fujiya is experiencing rapid growth in character goods and new products. Merchandise and restaurant sales are struggling. Main Brands

Chocolate: Anpanman Chocolate and Biscuits, Peco Peco Chocolate, Milky, Roco, Beverage and overall sales are falling. Good Almond and Peanuts Chocolate, Chocolate Pencil, Look Chocolate, My Melody

Candy: Mr. Friendly Candy, Maple, My Melody Candy and Gum, Anpanman Mini Mini Fujiya promotional characters Peko-chan and Poko-chan have Cookies: Peco-chan, Home Pie, Cheese Pie, Twist Pie, Country Mom, Biscuitino become well-known throughout Japan. Drinks: Lemon Squash, Lemon Kasshu, Shiromomosu Kasshu, Nectar, Nomu Yogurt

Main Ingredients

Milk and dairy products, lemon, orange, banana, peach, flour, sugar, vanilla and other flavorings.

Page 8: Market Brief Japan : Food Processing Sector - Western ...Key Products % of Total Company Profile and Strategies Wholesale 46 One of the five largest confectioners in Japan, particularly

GAIN Report #JA9092 Page 7 of 29

UNCLASSIFIED Foreign Agricultural Service/USDA

Confectionery Product Sector(s) Furuta Confectionery Co., Ltd. Company Name

225 Number Of Employees 6-7-22, Hayashiji, Ikuno-ku Address 2 Number of Factories Osaka 544-0023

Overseas Contact06-719-3201Fax Number06-719-6161 Phone Number

Email Web Page Address

Norimasa Yamamoto, Manager, General Affairs Dept. Contact PersonTel: 06-719-6161 Fax: 06-719-3201

Main Suppliers Sales and Net ProfitsNet ProfitsSales (Mil. \)Year

Major Trading Companies----1995----1996----1997

Company Profile and Strategies% of Total Key Products

Furuta has headquarters in Osaka and specialises in chocolates. 85Confectionery It is a top manufacturer of commercial chocolate.15Materials For Confectionery

Company provides wide range of products such as very cheap (30 yen chocolate), comedy character products, family products and presents.

Exports have been decreasing. Import of ingredients from Taiwan for commercial use has been growing.

Main Brands Furuta imports ingredients through trading companies. Chocolate: Sequoia (Milk, Strawberry), Les Clea, Chocles, Doremi Song, Port Wine Company is keen to import high quality ingredients. Cookies: Choco Sand, Butter

Pie: Fresh Creamy, Calcium, Chu A La Cream Chocolate Furuta is strong in introducing new products and has particular Jelly: Strawberry, Warabimochi, Pokaris interest in the development of toy candy. Chocolate for Western Confectionery & Ice Cream

Main Ingredients Furuta exports to the US, Europe, Australia, Asia, and the Middle East. Cacao beans, cacao butter, cacao mass, milk, sugar, oils and fats, strawberry

Page 9: Market Brief Japan : Food Processing Sector - Western ...Key Products % of Total Company Profile and Strategies Wholesale 46 One of the five largest confectioners in Japan, particularly

GAIN Report #JA9092 Page 8 of 29

UNCLASSIFIED Foreign Agricultural Service/USDA

Frozen Food, Confectionery, Product Sector(s) Imuraya Confectionery Co., Ltd. Company NameHealth and Functional Food 697 Number Of Employees 7-1-1, Takachaya Address 2 Number of Factories Tsu City 514-8530

Overseas Contact 059-234-2130Fax Number 059-234-2131 Phone Number

Email http://www.imuraya.co.jp/ Web Page Address Masayuki Imai, General Manager, Materials Dept. Contact Person

Main Suppliers Sales and Net ProfitsNet ProfitsSales (Mil. \)Year

Nissho Iwai Corp., Aiwa Bussan, Dai Nippon Printing Co., Ltd.48731,0041995 Koide Bussan, Hashimoto Shiki44831,5531996

30131,4541997

Company Profile and Strategies% of Total Key Products One of the leading manufactures of confectionery and food. Provides confectionery, steamed deli foods, chilled desserts, 35Confectionery, Foodstuffs seasonings and other foods, and also operates "Anna Millers" 45Frozen Cakes, Electronic Range Foods restaurant chain which is famous for its variety of western style7Restaurant Operations cakes and pies with more than 30 kinds.13Seasonings

Demand for confectionery is not increasing as much as expected under the current recession, and the competition in the market is intensifying. Imuraya established a new management control system and is trying to become more cost conscious.

Main Brands Company provides new products responding to the demand of Confectionery: Mini Yokan, Cool Lady, My Gift, Imuraya Castella, Cake Assort the market focusing on quality and freshness. Food: Yudeazuki, Strait Zenzai, Cup Shiruko, Chilled and Frozen Nikuman/Anman

Steamed Delica: Nikuman, Anman, Curryman, Pizzaman, Businessman, Puddingman Increased favorably received American menus in "Anna Millers." Chilled Dessert: Azuki Bar, Maccha Tsubuan Monaka, BOX, Uji Cup, Reito Mikan The company is also using directly imported ingredients, and Anna Miller's Pies: Banana, Cherry Cheese Cake, Tea Cream, Dutch Apple entered into health food related market with vegetable extracts. Main Ingredients

Company has been trying for ISO 14001 certification and Sweet beans, flour, milk and dairy products, eggs, green tea, rice, meat, seasonings, continues its environmental conscious within the firm. Enters curry seasonings, fruits and fruit extracts international exhibitions every year to keep R&D in mind.

Page 10: Market Brief Japan : Food Processing Sector - Western ...Key Products % of Total Company Profile and Strategies Wholesale 46 One of the five largest confectioners in Japan, particularly

GAIN Report #JA9092 Page 9 of 29

UNCLASSIFIED Foreign Agricultural Service/USDA

Confectionery, Snack Food Product Sector(s) Kabaya Foods Corporation Company Name

652 Number Of Employees 1100 Nonokuchi Address 3 Number of Factories Mitsu-cho, Mitsu-gun, Okayama 709-2117

Overseas ContactFax Number 0867-24-4300 Phone Number

Kabaya-J•—Po.Harenet.or.jp Email Web Page Address

Katsumi Kageyama, Development Manager Contact Person Tel: 0867-24-4830 Fax: 0867-24-2679

Main Suppliers Sales and Net ProfitsNet ProfitsSales (Mil. \)Year

Sanyo Kasei Kogyo, Dai Nippon Printing Co., Ltd., 53920,1211995 Mitsui & Co., Ltd., Toshoku, Toppan Printing Co., Ltd.62821,3401996

----1997

Company Profile and Strategies% of Total Key Products

Medium-sized producer of candy, chocolate, refrigerated2Chocolate confectionery and toy candy.6Pretzel

8Gummy Company actively tries to introduce new products.84Others

Kabaya is trying to reduce cost of production and materials.

Using various TV comic characters for chocolate products. Kabaya includes with chocolate a free gift (small toy) such as photo frame, pendant, name plate, etc. Main Brands

Two percent growth in sales of snack foods. However, since the Ju-C, Muscat Candy, Pretzeria, Digestic, Mini-type Gum, Banpaman Gummy retail price is getting cheaper, it is unlikely the company can Character Bukuro, Banpaman Holiday, Gold Chocolate, Almond Chocolate maintain growth rate.

Kabaya is actively trying to launch new confectionery products Main Ingredients and snack foods. For snack foods, target will be low priced items.

Sugar, starches, sucrose, milk, flour, salt, flavorings, cacao mass, Company is keen to import main ingredients from foreign vegetable oil, sugar candy, corn, potato yeast, wheat countries such as the US (eg. wheat).

Page 11: Market Brief Japan : Food Processing Sector - Western ...Key Products % of Total Company Profile and Strategies Wholesale 46 One of the five largest confectioners in Japan, particularly

GAIN Report #JA9092 Page 10 of 29

UNCLASSIFIED Foreign Agricultural Service/USDA

Snack Food, Health and Functional Product Sector(s) Kameda Seika Co., Ltd. Company NameFood, Confectionery 2,572 Number Of Employees 3-1-1 Kameda Kogyodanchi, Kameda-cho, Address 4 Number of Factories Nakakanbaragun, Niigata 950-0198

Overseas Contact Kameda Seika Co., Ltd. (Sesmark Foods, Inc.) 025-382-6624Fax Number 025-382-2111 Phone Number 2154 Harlem Rd. Email Loves Park, IL 61111 http://www.kamedaseika.co.jp/ Web Page Address Tel: 815-636-9500 Tsunetaka Takahashi, Director of Marketing Division Contact Person

Tel: 025-381-3776 Main Suppliers Sales and Net Profits

Net ProfitsSales (Mil. \)Year Mitsubishi Corp., Fujii Shoten, Tabata, Takesho, Y S Shokuhin53063,7641995

69669,022199658371,0341997

Company Profile and Strategies% of Total Key Products

Top ranking manufacturer of rice crackers. Main sales footholds 58Rice Cookies, Snacks in Kanto and Chubu region, but working to develop markets42Rice Crackers nationwide.

Company has strong technological know how and good reputation for putting out well received new products.

Established in 1957 with 111 employees and capitalization of 10 million yen. In 1984, Kameda was the first company in the confectionery industry to be listed on the Niigata Stock Exchange. Main Brands

Snack: Ume-no-ka Maki, Peanuts iri Khaki-no-Tane, Iso Genroku, Nori-Pi Pack, In October 1994, the company started to produce low protein Ebippuri, Tsumamidane, rice called "Yume Gohan" for people with kidney disease or Rice Snacks: Kotsubukko, Happyturn, Potapota-yaki, Age-Ichiban, Soft Salad, Salad those who must limit their daily intake of protein. Usu-yaki

Retort: Yume Gohan, Aji-ni-Shikisai Company also produces Western-style cakes, biscuits, chewing Main Ingredients gum, chocolate and candy.

Rice, milk and dairy products, salt, sugar, seaweed, sesame, wheat flour, ume (plum)

Page 12: Market Brief Japan : Food Processing Sector - Western ...Key Products % of Total Company Profile and Strategies Wholesale 46 One of the five largest confectioners in Japan, particularly

GAIN Report #JA9092 Page 11 of 29

UNCLASSIFIED Foreign Agricultural Service/USDA

Confectionery, Snack Food, Product Sector(s) Kanebo Foods, Ltd. Company Name Health and Functional Foods, New Age Beverages

4,161 Number Of Employees Daikei Itabashi Bldg, 1-42-13 Itabashi, Address 4 (four) Number of Factories Itabashi-ku, Tokyo 173-8639

Overseas Contact Kanebo U.S.A Inc. (Foreign Trade and Marketing Office) (03) 5248-5330Fax Number (03) 5248-5323 Phone Number 693 Fifth Avenue, 17th Floor, New York, Email NY 10022, U.S.A http://www.kanebo.co.jp Web Page Address Tel: (212) 339-9700Mr. Nagata, Marketing Department Contact Person

Fax: 03-5446-3684Tel: 03-5446-3596 Main Suppliers Sales and Net Profits

Net ProfitsSales (Mil. \)Year Tomen, Marubeni, Kanematsu(-)13,306378,5481995 3,228333,6091996

7,022257,2911997

Company Profile and Strategies% of Total Key Products

Kanebo Foods, Ltd is a subsidiary of Kanebo, Ltd. and sells 20Fashion Merchandise confectionery, snacks, and beverages.47Cosmetics

10New Materials In food industry Kanebo is concentrating mainly on pocket-sized 15Lifestyle Products/Foods confectionery for refreshment and relaxation. "Frisk", a mouth 8Pharmaceuticals refreshing mint, is Kanebo's most popular product since it was launched in 1994. Kanebo is working on a unique product line in beverage sector. "New Diet Tea," "Diet Berry" and "C White" are for feminine Main Brands health and beauty, while "Silk-In" contains dietary fiber. Beverages: "New Diet Tea," "Diet Berry," and "C White", and "Silk In."

Chewing Gum: Frisk, Etiquette Gum, Diet Gum, Dentifrice Gum Kanebo's fresh Shiitake mushrooms are popular health foods. Frozen Confectionery: Dessert of the Season, European Sugar Cones,

"Rainbow-hat" ice cream

Main Ingredients

Milk, teas, fruits, starches, sugar, mint and other herbs, vitamin supplements

Page 13: Market Brief Japan : Food Processing Sector - Western ...Key Products % of Total Company Profile and Strategies Wholesale 46 One of the five largest confectioners in Japan, particularly

GAIN Report #JA9092 Page 12 of 29

UNCLASSIFIED Foreign Agricultural Service/USDA

Confectionery Product Sector(s) Kanro Co., Ltd. Company Name

514 Number Of Employees 2-10-11, Arai, Nakano-ku, Address 2 Number of Factories Tokyo 165-8775

Overseas Contact 03-5380-8877Fax Number 03-3385-8811 Phone Number

Email http://www.kanro.co.jp/index2.html Web Page Address Osamu Ohyachi, Director of Marketing Division Contact Person

Main Suppliers Sales and Net ProfitsNet ProfitsSales (Mil. \)Year

Mitsubishi Corp., Dai Nippon Printing Co., Ltd., 20617,2191995 Toppan Printing Co., Ltd., Nitto Seiki, Onishi Shoji, 54517,1461996 Sanko Foods, Koto22117,4151997

Company Profile and Strategies% of Total Key Products

Medium-sized confectionery maker with candy production as65Packed Candies mainline. Founded in 1912.2Canned Candies

31Packed-Pack Candies Well-known for "Kanro Ame" brand candy throat lozenges.2Others

Has joint-venture for production of confections and foodstuffs in Taiwan.

Starting sales of nationwide capsule-type candy "Dash". Sales in Chinese market are starting off well. Main Brands

Progressing with switch to in-house manufacturing and improved Candy: Kuro-ame (Black sugar candy), Dole candy (Dole fruit juice candy), distribution efficiency. Kanro Nodo, Ame (throat drop), Non-sugar candy, Panna Cotta Gummy Candy

Gum: Chew-lop Cola, Apple Flavored Gum Kanro also sells health food through mail order service.

Main Ingredients Launching 3-10 new products monthly which include various functional (Xylitol), fruit and coffee extract candies. Fruit flavorings (strawberry, orange, blueberry, apple, lemon), custard and sour cream

Vitamin C, NutraSweet, lecithin and other additives, Xylitol

Page 14: Market Brief Japan : Food Processing Sector - Western ...Key Products % of Total Company Profile and Strategies Wholesale 46 One of the five largest confectioners in Japan, particularly

GAIN Report #JA9092 Page 13 of 29

UNCLASSIFIED Foreign Agricultural Service/USDA

Confectionery, Western Bakery Product Sector(s) Lotte Co., Ltd Company NameProducts, Health & Functional Food 2,100 Number Of Employees 3-20-1, Nishi-Shinjuku Address 6 Number of Factories Shinjuku-ku, Tokyo 103-0023

Overseas Contact 03-3375-1293Fax Number 03-3375-1211 Phone Number

Lotte U. S. A. Inc. Email 5423 Wayne Rd. Battle Creek, MI 49015 http://www.lotte.co.kr Web Page Address Tel: 616-963-6664 Mr. Takano, Public Relations Dept. Contact Person Fax: 616-963-6695 Tel: 03-5388-5617 Fax: 03:3378-6199 Main Suppliers Sales and Net Profits

Net ProfitsSales (Mil. \)Year Mitsubishi Corp., Mitsui & Co., Ltd., ----1995 Hasegawa Koryo, Dai Nippon Printing Co., Ltd.--231,5001996

----1997

Company Profile and Strategies% of Total Key Products Lotte is the largest confectionery manufacturer in Japan. Lotte holds two-thirds of the chewing gum market, and within that, 90%--Chewing Gum of the market of stick gum. Company headquarters in is Korea.--Chocolate --Cake Lotte also operates the Lotteria chain of fast food restaurants in --Candy Japan. --Ice Cream

--Sugarless Chocolate Lotte was first established in Japan in 1948 as manufacturer of chewing gum. In 1964, Lotte Japan expanded its product line to include chocolate and other confectionery products.

Main Brands Lotte is always on the lookout for new opportunities for long term investment in existing fields of activity as well as new business Cool Mint Gum, Green Gum, Ghana Milk Chocolate, Crunky Chocolate by maintaining /improving its market positions through continual Koume, Welch's gummi, (Candy), Crunky Biscuits, Chococi (biscuits) Ice Cream improvement in production, distribution and service. Guava C, Mandarin, Sweetie (soft drinks), Villa Rica (canned coffee)

Lotte builds market share by focusing on excellence in every stage Main Ingredients of the production process. Lotte uses the finest raw material and Xylitol, chocolate, raw milk, butter, sugar, gelatin, flavorings (erythritol and talinose), ingredients to ensure the quality and new packaging materials are frozen fruit (including strawberries and peach), almonds, cashew nuts, tested for suitability and consumer acceptance. fruit juice and concentrates (guava, orange, grapefruit and lime), roasted coffee.

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GAIN Report #JA9092 Page 14 of 29

UNCLASSIFIED Foreign Agricultural Service/USDA

Confectionery Product Sector(s) Meiji Chewing Gum Co., Ltd. Company Name

230 Number Of Employees 3-8, Nishibiwajima-machi, Asahi-cho Address 1 Number of Factories Aichi 452-0064

Overseas Contact 052-502-1916Fax Number 052-501-8291 Phone Number

Email Web Page Address

Kazuosa Nomura, Manager, Marketing Dept. Contact Person Tel: 052-501-8291 Fax: 052-502-1916

Main Suppliers Sales and Net ProfitsNet ProfitsSales (Mil. \)Year

----1995----1996----1997

Company Profile and Strategies% of Total Key Products

Company emphasizes research and development of chewing gum 10Chewing Gum to provide diversified products. 2Soft Candy

88Others Company has adopted HACCP for its quality control.

Tremendous growth in sales since launching "Xylish,"a functional chewing gum. Sales in 1997 grew 1.4 % over the previous year and reached a record high.

Company is involved in local community events by organizing Main Brands factory visits for local primary and junior high school students and providing products for local university festivals. Company Xylish, Petit Gum, Wata Gumu Gaburi Chew (candy), Gaburi Fusen Gum, also sponsors many sporting events. Suppai Goyojin Series

Main Ingredients

Sugar, sweetener (Xylitol), fruit flavorings (lemon, orange, grape), chocolate, natural resin

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GAIN Report #JA9092 Page 15 of 29

UNCLASSIFIED Foreign Agricultural Service/USDA

Confectionery, Health and Product Sector(s) 47. Meiji Seika Kaisha, Ltd. Company Name Functional Food, Retort Pouch, Snack Food

5,119 Number Of Employees 2-4-16, Kyobashi, Chuo-ku Address 9 Number of Factories Tokyo 104-8002

Overseas Contact 03-3281-7046Fax Number 03-3272-6511 Phone Number

Meiji Seika (U.S.A.) Inc. Email 733 Third Ave., Suite 1910 http://www.meiji.co.jp/ Web Page Address New York, NY 10017 Takeshi Kozawa, Director of Food Planning Division Contact Person Tel: 212-557-1580 Main Suppliers Sales and Net Profits Mitsubishi Corp., Mitsui & Co., Ltd., Toppan Printing Co.,Ltd.Net ProfitsSales (Mil. \)Year Dai Nippon Printing Co.,Ltd., Meiji Sanofi Yakuhin, 3,164249,1001995 Fuji Amido Chemical, Meisho, Fuji Oil Co., Ltd., 3,205255,6971996 Kyodo Printing Co., Ltd., Shinko Kagaku3,256253,3101997

Company Profile and Strategies% of Total Key Products

Leading confectionery maker in Japan. Pharmaceuticals50Confectionery account for 40% of entire sales. 40Pharmaceuticals

9Foodstuffs Meiji Seika is expanding business into beverages, retort pouch1Others foods and health and functional food markets.

Company is aggressive toward overseas operations and has joint ventures with confectionery and pharmaceutical companies overseas.

Main Brands Company is aggressive toward biotechnology research. Chocolate: Milk Chocolate, Yawaraka Chocolate, Almond Chocolate, Meltykiss

Snacks: Karl (corn puffs), Plain Crackers, Butter Cookies, McVitie's Biscuits, Pharmaceutical sales are rising to offset sluggish sales of American Potato Chips Retort: Ginza Curry, Hot Cake Mix, Iroiro Yasai Soup confectionery and food items. New Age: Savas Multi Balance Jelly, Drink and Powder, Lola Vitamins, Meioligo

Candy: Chelsea, Fruit Juice Gummy, Hi-Lemon, Xylish Mint Gum Company is launching a chocolate containing component Main Ingredients preventing hardening of the arteries.

Chocolate, wheat flour, almonds, macadamia nuts, canned fruits and vegetables Xylitol, milk and dairy products, cocoa, corn, potatoes, oranges, coffee beans peaches, pineapples, sweet corn

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GAIN Report #JA9092 Page 16 of 29

UNCLASSIFIED Foreign Agricultural Service/USDA

Confectionery, Health and Product Sector(s) Meito Sangyo Co., Ltd. Company NameFunctional Food 400 Number Of Employees 2-41, Sasatsuka-cho, Nishi-ku, Address 4 Number of Factories Nagoya 451-8520

Overseas Contact 052-524-3738Fax Number 052-521-7111 Phone Number

Email Web Page Address

Toshihiko Yoshino, Food R&D Department Director Contact Person Phone: 052-521-7117 Fax: 052-521-7121

Main Suppliers Sales and Net ProfitsNet ProfitsSales (Mil. \)Year

Fuji Oil Co., Ltd., Dai Nippon Printing Co., Ltd., 1,33416,0431995 Shin Nippon Kagaku Kogyo, Yamato Seikan,98215,5931996 Takasago International Corp.90716,1031997

Company Profile and Strategies% of Total Key Products

Medium-ranking producer of confectionery, incl chocolate variety.81Foodstuffs Also produces enzymes to produce dextran and ƒÀ-cyclodextrin.16Chemical Products

3Others Active in bio-applied functional food business and developing new products.

Chemical products growing on favorable enzyme exports.

Food items also firm thru introduction of new chocolate products. Main Brands

Alfabet Cookie in Choco Bar (Chocolate), Instant Lemon Tea Pukupuktai-Earin-choco

Main Ingredients

Coccoa, tea leaves, sugar, saccharide, lemon extracts, citric acid, flour, milk and dairy products.

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GAIN Report #JA9092 Page 17 of 29

UNCLASSIFIED Foreign Agricultural Service/USDA

Confectionery, Snacks Food, Product Sector(s) Morinaga & Co., Ltd. Company Name New Age Beverages, Western Bakery Products

2,345 Number Of Employees 5-33-1 Shiba, Minato-ku, Address 5 Number of Factories Tokyo 108-8403

Overseas Contact Morinaga U.S.A. Office (03) 3769-1809Fax Number (03) 3456-0134 Phone Number 10100 Santa Monica Blvd Suite, 705 Email Los Angeles, CA 90067 http://www.morinaga.co.jp Web Page Address Tel: (310) 230-8078 Fax: (301) 203-0915 Hisashi Kawahara, General Manager, Confectionery Dept. Contact Person

Fax: 03-3769-6129 Phone: 03-3456-0112 Main Suppliers Sales and Net Profits

Net ProfitsSales (Mil. \)Year Hokuren, Takarazuka Shokuhin, Yokohama Nyugyo, Toyo Nyugyo(-)1,217 155,4171995

(-)2,791155,9721996(-)2,152150,4601997

Company Profile and Strategies% of Total Key Products

Established in 1899, Morinaga is leading manufacturer of 60Confectionery confectionery and snack foods and has been a pioneer in 23Foodstuffs bringing Western-style confectioneries into the Japanese market.14Chilled Desserts

3Others Cocoa sales, with Morinaga having the largest share in Japan, have increased as a result of a strong campaign to highlight its benefits to health-conscious consumers.

Morinaga puts an effort into constantly creating new demand in the market. Involved in restaurant operations thru subsidiaries. Main Brands Beverage sales are falling, but "Weider in Jelly" is driving Confectionery: Hi-Soft Caramels, Choco ball Chocolate, Hi-Chew Candy. food growth. Ice cream operations are also breaking even after Beverages: Cocoa Drink, Ryokucha, Amazake. Food Stuffs: Pancake mix after long deficits. Frozen Dessert: Ice Box, Ice Guy, Choco Monaka Jumbo.

Health Food: Wieder In Jelly Morinaga has been exporting to Asian countries and the US. Main Ingredients The company carries out direct importing not only of products but also of carefully selected raw materials for use in Morinaga Sugar, brown sugar, cocoa, flour, amino acids and protein supplements, vitamin products. Morinaga is active in introducing overseas technology supplements, corn syrup, starches, milk and cheese products. and selling contracted products in the Japanese market.

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GAIN Report #JA9092 Page 18 of 29

UNCLASSIFIED Foreign Agricultural Service/USDA

Western Bakery Products, Product Sector(s) Morozoff, Ltd. Company NameConfectionery 879 Number Of Employees 6-11-19, Mikage-Honcho, Higashi-Nadaku Address 10 Number of Factories Kobe 658-0046

Overseas Contact 078-822-5046Fax Number 078-822-5000 Phone Number

Email Web Page Address

Kazushi Watanabe, Director of Production Division Contact Person

Main Suppliers Sales and Net ProfitsNet ProfitsSales (Mil. \)Year

Sakai Printing Co., Ltd., Fujisan Shokai, Osaka Seikan, (889)27,6951995 Isaka Unyu, Shintani(551)28,8271996

(2,798)28,0341997

Company Profile and Strategies% of Total Key Products

Kobe based manufacturer of chocolates and Western cakes.17Chocolates3Candies

Products sold through company run sales outlets and 22Cookies direct sales to department stores. Also operates coffee shops 49Cakes and restaurants. 9Frozen Confectionary

Expanding into Tokyo metropolitan area.

Main Brands

Premium Chocolate Selection, Whisky Bonbon, Kingureto (chocolate•j Fancy Candy, Jewelry Drop (candy•j, Arukadea, Odetto, Tea Break (baked candies) Fancy Dessert, Cheese Cake, Custard Pudding

Main Ingredients

Chocolate, cream cheese, gelatin, frozen and fresh fruit (strawberries, blueberries), butter, cream, sugar.

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GAIN Report #JA9092 Page 19 of 29

UNCLASSIFIED Foreign Agricultural Service/USDA

Confectionery, Western Bakery Product Sector(s) Nagasakiya Co., Ltd. Company NameProducts548 Number Of Employees 328, Sashimono-cho, Ebisugawa-Noboru, Address 4 Number of Factories Kawaramachidori, Chukyo-ku

Overseas Contact Kyoto 604-0903 075-231-5393Fax Number 075-231-5366 Phone Number

Email Web Page Address

Takenari Takahashi, General Manager, Marketing Dept. Contact Person

Main Suppliers Sales and Net ProfitsNet ProfitsSales (Mil. \)Year

Dai Nippon Printing Co., Ltd., Snow Brand Milk Products (57)12,5061995(956)12,2371996

(2,865)11,2421997

Company Profile and Strategies% of Total Key Products

Medium-sized confectioner, wholesaling candies and chewing 38Confectionaries, Castella Cakes gum for children. Expanded business to chocolate and cookies. 57Chocolates, Candies

Restaurant & Coffee Shop Company also sells premium gift-purpose Western confectionery5 Operations through chain outlets in department stores.

"Castella" cake, a former mainline product, is now in decline. Overall sales have been hit hard by economic downturn in Japan.

Boosting sales through personnel acceptance from Snow Brand Main Brands Milk Products and Sakura Bank.

Two Ball Chocolate, Whisky Bonbon Chocolate, Castella Cakes, Pursuing sale and production of French style confectionery. Hello Kitty Chocolates, Super Mario Goods, Palais Friand Confectionery Series

Sweet Duria, Chocolate Crepe, Michell Chocolate, Grand Coeur, Fancy Gift Company is eager to expand overseas business. Salong

Main Ingredients

Cocoa, sugar, milk and dairy products, butter and butter flavorings, dried fruits and nuts, fruit flavorings (strawberry, lemon, cranberry, grapefruit, mango), puffed rice

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GAIN Report #JA9092 Page 20 of 29

UNCLASSIFIED Foreign Agricultural Service/USDA

Confectionery Product Sector(s) Nakamuraya Co., Ltd. Company Name

1,378 Number Of Employees 3-26-13, Shinjuku, Shinjuku-ku Address 4 Number of Factories Tokyo 160-0022

Overseas Contact 03-3226-7959Fax Number 03-3352-6161 Phone Number

Email http://www.nakamuraya.co.jp Web Page Address Seimi Ito, Manager, Materials Procurement Department Contact Person

Main Suppliers Sales and Net ProfitsNet ProfitsSales (Mil. \)Year

Nippon Flour Mills Co., Ltd., Nitto Flour Milling Co., Ltd., 61142,1691995 Mitsui Sugar Co., Ltd., Nissin Flour Milling Co.,Ltd.,66042,8351996 Itoham Foods Inc., Asahi Denka Kogyo, NOF Corp., (1,034)41,5891997 Toyo Seikan Kaisha, Ltd., Dai Nippon Printing Co., Ltd., Zenno Company Profile and Strategies% of Total Key Products

Medium sized confectioner with long history making Japanese 63Cakes cakes and crackers. Pioneer in introducing Western foods 17Foods to Japan. Company operates "Chez Moi" chain of family 13Beverages restaurants. 7Breads

0Others Manufacturing various western and Japanese confectionery and bread.

Main Brands Eager to expand its distribution network to food service industry.

Geppei, Chukaman, Mizu Yokan, Breads, Frisch Essen (Ham,Sausage) Using Nagasakiya chain strategy to expand its business. Nikuman, Curry-man, An-man, Cheese and Bacon, Pizza-man

From 1993, expanded its business to real estate and fitness clubs. Main Ingredients

Newly expanded business includes Japanese confectionery shops, Chinese restaurants, curry restaurants and bakery shops. Red beans, flour, yeast, ham, bacon, sausage, beef, chines spices, curry spices

pizza toppings, pork, shiitake mushrooms, natural salt.

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GAIN Report #JA9092 Page 21 of 29

UNCLASSIFIED Foreign Agricultural Service/USDA

Confectionery, Soup, New Age Product Sector(s) Nestle Japan K. K. Company NameBeverages 2,800 Number Of Employees 2-10, Koyo-cho, Higashinada-ku, Kobe City Address 4 Number of Factories Hyogo 658-0032

Overseas ContactFax Number 078-857-4300 Phone Number

Nestle S.A. Email Avenue Nestle 55 http://www.nestle.co.jp/ Web Page Address CH-1800 Vevey Osamu Hikida Contact Person Switzerland Executive Director, National Sales, Food and Beverage Div. Main Suppliers Sales and Net Profits

Net ProfitsSales (Mil. \)Year Mitsubishi Corp., Itochu Corp., Tomen Corp., Nissho Iwai Corp.12,300245,1001995

12,600241,100199612,400244,0001997

Company Profile and Strategies% of Total Key Products

Nestle is the largest food company in the world.Instant coffeeConfectionery

Nestle Japan is struggling to deal with poor sales due to the Beverages economy and increased raw materials costs due to the weak Soups yen. Nestle Japan is working to cut expenses by reducing Pasta distribution and administration costs in order to deal with Pet Food these problems. Nestle's plan for 1998 includes revitalizing core business and strengthening diversification.

The revitalization campaign will attempt to attract new Main Brands customers to products such as Nescafe soluble coffee, Nescafe (instant coffee), Nescafe Acapulco, Nescafe Montealban, Nescafe Classic coffee creamer, Milo cocoa drink and Magli instant soups. Blend, Nescafe Special Roast (canned and bottled coffee), Nido, Brite, Krematop,

Milo (chocolate drink), Perrier, S. Pellegrino, Valvert, Contrex, The diversification plan aims to develop the following Vittel (bottled water), Buitoni (pasta, pasta sauce and olive oil), Maggi (soups) businesses health foods, beverages, confectionery, Italian foods, KitKat, Crunch (candy bars), Polo (mints) mineral water food services and pet food. Main Ingredients

Coffee beans, cocoa, sugar, chicken consomme, tomatoes, onions, garlic, asparagus peppers, lemon, corn, Italian spices, olives, dried crab and other seafood, rice

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GAIN Report #JA9092 Page 22 of 29

UNCLASSIFIED Foreign Agricultural Service/USDA

Western Bakery Products, Product Sector(s) Nissin Cisco Co., Ltd. Company NameConfectionery 400 Number Of Employees 80, Ishizukita-Machi, Sakai-City Address 2 Number of Factories Osaka 590-0823

Overseas Contact 0722-45-4717Fax Number 0722-41-0201 Phone Number

Email Web Page Address

Naoki Sasaki, Marketing Dept. Contact Person Phone: 03-3883-1831 Fax: 03-3860-1043

Main Suppliers Sales and Net ProfitsNet ProfitsSales (Mil. \)Year

Mitsubishi Corp., Toppan Printing Co., Ltd.,----1995 Dai Nippon Printing Co., Ltd., Union Shoji----1996

----1997

Company Profile and Strategies% of Total Key Products

Medium sized biscuit and chocolate manufacturer.50Biscuit, Cookie40Cereal

Slight growth in ingredients procurement. Company is concerned 10Chocolate about the rising price of ingredients for future imports.

Company is reducing selection of product items and continues to import ingredients. It has been affected by pricing of ingredients due to the weakening of yen.

Main Brands Company's exports have been decreasing.

Coconut Sable, Shittori Cake Red Wine, Amaberu Rum Raisin Cake Launched new snack foods in 1998 which are called "coconut Ciscorn, Ultraman Corn Flake, Diet Ciscorn, Choco Flake, Mug Cereal, milk" and "green tea milk". Kokumotushugi, Tappuriseni, Snack UFO, Chicken Ramen Snack,

Crisp Cake Chocolate, Pokemon Snack (norishio, curry), Tamagocchi Snack Shinshu Successful in reducing calories in snack food by using coconut Main Ingredients milk and green tea. Coconut and green tea are recently popular as ice cream flavors, but they are very new for snack foods. Flour, sugar, corn, fat, milk, cocoa powder, almond, starch, raisin, nuts, salt

chocolate powder, powdered

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GAIN Report #JA9092 Page 23 of 29

UNCLASSIFIED Foreign Agricultural Service/USDA

Frozen Food, Retort Pouch Product Sector(s) NittoBest Corp. Company NameConfectionery 1,060 Number Of Employees 4-27, Saiwai-cho, Sagae City Address 9 Number of Factories Yamagata 991-8610

Overseas Contact 0237-86-9190Fax Number 0237-86-2100 Phone Number

Email Web Page Address

Mr. Hirono, Board of Directors Office Contact Person

Main Suppliers Sales and Net ProfitsNet ProfitsSales (Mil. \)Year

Nozaki & Co., Ltd., Okuno, Globe Meat Importers47038,432199514538,275199615839,2881997

Company Profile and Strategies% of Total Key Products

Producer of frozen food for commercial use, ranked seventh in 85Frozen Foods Japan. Has 40% of Japan's corned beef market. Also makes chilled 9Canned Foods desserts and canned foods for export. Main customers are in the 5Other Products commercial food services industry.0Others

Customers include restaurants, delicatessens, boxed lunch delivery shops, caterers for school lunch programs, and other food catering businesses.

NittoBest is continuously improving manufacturing techniques and using new materials such as low calorie ingredients, new flavors, germ free packaging, new sterilizing techniques, Main Brands health foods, and new types of soft frozen foods which don't need to be defrosted. Best (processed meat products), Joy Gourmet (frozen prepared meals for the food

service industry), Benihana (portion cut beef steaks), Monta Veil (chilled dessert) NittoBest imports ingredients from North America, Latin America, Melon pudding Australia, Southeast Asia. Company is also keen to improve quality of ingredients and processing techniques. Company is Main Ingredients curently trying to expand its international network.

Beef, sugar, milk and dairy products, melon, other fruit flavorings, frozen vegetables

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GAIN Report #JA9092 Page 24 of 29

UNCLASSIFIED Foreign Agricultural Service/USDA

New Age Beverages; Health and Product Sector(s) Suntory Co., Ltd. Company NameFunctional Food, Confectionery

4,737 Number Of Employees 2-1-40, Dojimahama, Kita-ku Address 19 Number of Factories Osaka 530-0004

Overseas Contact Suntory International Corp. NY Office 06-345-1169Fax Number 06-346-1150 Phone Number 12 East 49th Floor, New York, NY 10017 Email

http://www.suntory.co.jp/ Web Page Address Suntory Water Group Inc. Hideto Matsui, Public Relations Department Contact Person 2141 Powers Perry Road, Marietta, GA 30067 Tel: 06-346-0835 Fax: 06-346-1426 Main Suppliers Sales and Net Profits

Net ProfitsSales (Mil. \)Year Itochu Corp., Zenkoku Nogyo Kyodo Kumiai Rengokai,7,343731,5531995 Mitsui & Co., Ltd., Ishizuka Glass Co, Ltd., 6,074740,4441996 Dai Nippon Printing Co., Ltd.,----1997

Company Profile and Strategies% of Total Key Products

Suntory is one of the leading beverage manufactures in Japan 41Liquor whose product lines range from alcoholic and nonalcoholic28Beer beverages, food, pharmaceuticals, restaurant management to25Foods publishing and entertainment. 5Wine

1Other In 1998, Suntory became Pepsi's master franchisee in Japan managing all marketing, production and distribution of Pepsi products in the country.

Sales of Boss and Pekoe tea have grown recently, although Main Brands demand is down in the beverage category overall. Suntory Oolong Tea, Suntory Coffee Boss, Suntory English Tea Pekoe, Suntory

Minami Alps Natural Mineral Water, Suntory Vitamin Water, Suntory CC Lemon, Suntory distributes Campbell's V8 and tomato juice, Italian Nacchan Orange, Pepsi, 7Up, V8 Juice, Nohohon Tea, Dekavita C, Bikkle gourmet food products from Salov s.p.a. of Italy and ice cream Beer: Malts, Super Hops, White Beer, Brown Beer for Pillsbury Company, through the joint venture company Foods: La Bonta canned tomatoes, Sagra olive oil, C.C. Lemon and other candies Haagen-Dazs Japan, Inc. Suntory has expanded into the bottled Main Ingredients water business in the U.S. with Suntory Water Group Inc., the second largest in the U.S. market. Tea leaves, coffee beans, tomatoes, olive oil, vitamin supplements, orange

flavorings, hops, barley, malt, celery, carrots, wheat, sugar, milk, cocoa Company is trying to reduce cost of materials.

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GAIN Report #JA9092 Page 25 of 29

UNCLASSIFIED Foreign Agricultural Service/USDA

Western Bakery Products Product Sector(s) Takarabune Corp. Company NameConfectionery 756 Number Of Employees 37-1, Koaza-saguri, Oaza-sayama, Kumiyama-cho Address 4 Number of Factories Kuse-gun, Kyoto 613-8577

Overseas Contact 0774-46-6530Fax Number 0774-46-6002 Phone Number

Email http://www.infoweb.or.jp/takarabune/ Web Page Address

Contact Person

Main Suppliers Sales and Net ProfitsNet ProfitsSales (Mil. \)Year

Meiji Milk Products Co., Ltd., Fuji Oil Co., Ltd., Asahi Foods,30531,5621995 Santa, Q. P. Corp.(792)30,3691996

(3,311)30,0151997

Company Profile and Strategies% of Total Key Products

Kyoto based confectioner and franchise chain operator. Operates61Western Confectionery more than 1,000 chain stores in Japan. Main products include25Japanese & Western Sweets eclairs, cream puffs and Japanese confections.4Chilled Desserts

10Others Although company recognizes the importance and necessity of "value added", fashionable and high-class products, which Japanese consumers became familiar with during the bubble economy period, Takarabune is now putting more priority on the ability to provide reasonably priced products which are a good value. Main Brands

Cream Puffs, Pudding Choux, Ogura Choux, Eclair, Strawberry Cake, Based on the result of the two-way marketing system between Nama Cream Cake, Osarusan Cake, Kisha Poppo, 7-hiki No Koyagi, franchise chain stores and headquarters, company continues R&D, C'est Maison (Madeleine, cheese tart), Kyobumi (Kyoto, Katsura, Kinkan Hitotsubu, and development of new sales methods. Also, working on Ume Hitotsubu, Kuri Hitotsubu), Black Cocoa Chou, Mont Blanc Chou, Black Cocoa technological innovations to improve productivity. Chou, Mont Blanc Chou

Main Ingredients "Essential merchandising for a rich life" is their theme.

Flour, eggs, sugar, milk and dairy products, sweet beans, cocoa, melon Expanding into Chubu and Tokyo areas. fruits (strawberry,etc.), cheese

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UNCLASSIFIED Foreign Agricultural Service/USDA

Confectionery, Soup Product Sector(s) Toraku Co., Ltd. Company Name

214 Number Of Employees 5-5, Koyocho-nishi, Higashinada-ku, Address 1 Number of Factories Kobe 658-0033

Overseas Contact 078-857-2447Fax Number 078-857-1522 Phone Number

Email http://www.kbm.or.jp/k_grm/gurume/torak/index.htm Web Page Address Mr. Fukutake, Deputy Manager, General Affairs Dept. Contact Person Tel: 078-857-1522 Fax: 078-857-2447

Main Suppliers Sales and Net ProfitsNet ProfitsSales (Mil. \)Year

--9,0871995--10,2711996--9,500*1997

*Forecast Company Profile and Strategies% of Total Key Products

Headquarters and factory are based in Kobe. Products46Chilled Dessert include desserts, dairy products, chilled soup, 30Gift, Souvenir Dessert soyamilk and desserts, for commercial and household usage.24Cream Soup

Company's motto is "Good taste and Good time".

Best selling brand is "Jolly Madame no Yaki Pudding" which is a high quality, home-made tasting dessert. Gift section with high quality fruit jelly, mousse, sweet bean jelly is growing rapidly. Thus, a gift department has been established recently. Main Brands

Jolly Madame no Yaki Pudding, Kobe Pudding, Hokkaido Melon Jelly Tonyu de tsukutta Yoghurt (Soyamilk products)

Toraku produces elaborate and competitive high quality products. Raku Raku Whip, Toraku Whip, Pre Whip Royal Fresh, Hokkaido Corn Soup, Toraku's strategy is to utilize the image of their hometown, Uragoshi Corn Potage Soup the city of Kobe, which gives an impression of high quality and modernity, especially in regard to western food products such as Main Ingredients bread, cakes and desserts.

Flour, milk, sugar, egg, soyamilk, aloe, fruits (berries, lychee, etc.), cocoa, corn, sweet bean paste, green tea

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UNCLASSIFIED Foreign Agricultural Service/USDA

Confectionery Product Sector(s) Warner-Lambert K.K. Company Name

700 Number Of Employees 2-24-9, Kamioosaki, Shinagawa-ku Address 2 Number of Factories Tokyo 141-0021

Overseas Contact03-5487-6835Fax Number03-5487-6920 Phone Number

Warner-Lambert Co. Email 201 Tabor Road, Morris Plains, NJ 07950, USA Web Page Address

Kashio Kobayashi, Marketing Department Contact Person

Main Suppliers Sales and Net ProfitsNet ProfitsSales (Mil. \)Year

Warner-Lambert Co., Tetra werke, Parke Davis----1995----1996----1997

Company Profile and Strategies% of Total Key Products

In Japan, the product portfolio includes pharmaceuticals, Pharmaceuticals hard gelatin capsules, candy, chewing gum, safety razors, blades Hard gelatin capsules and other wet shaving products, mouthwash, andtropical fish Candy food. Chewing gum

Safety razors etc. Warner Lambert produces some of Japan's most popular gums and candies. "Trident" was Japan's first sugarless gum and remains a category leader. "Clorets" chewing gum with the active ingredient "Actizol" holds the number one market share in the Kanto area. Bubblicious, a bubble gum filled with natural Main Brands fruit juice, is also a market leader. Ristelin, Trident, Adams, Clorets, Bubblicious (gum).

Sting (anti-drowsiness gum) Success comes from "glocalization" (a combination of Mentos (mints) global and local needs) marketing strategy. Its key products in Halls (cough drops) Japan include Mentos, a chewable candy; and Sting, an antidrowsiness chewing gum. Main Ingredients

Sugar, gum base, corn syrup, natural and artificial flavorings, food starch Confectionery Division is one of the most active television aspartame, candelilla wax, partially hydrogenated cottonseed oil, sorbitol, advertisers in Japan. xylitol, glycerin.

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GAIN Report #JA9092 Page 28 of 29

UNCLASSIFIED Foreign Agricultural Service/USDA

Western Bakery Products Product Sector(s) Yamazaki Baking Co., Ltd. Company NameConfectionery 18,942 Number Of Employees 3-10-1, Iwamoto-cho, Address 25 Number of Factories Chiyoda-ku, Tokyo 101-8585

Overseas Contact 03-3864-3109Fax Number 03-3864-3111 Phone Number

Yamazaki USA Inc. Email 342 Madison Ave., Suite # 604 New York, NY 10173 http://www.b-brain.co.jp/job/yamazaki/index.html Web Page AddressTel: 212-490-0055 Fax: 212-490-0062 Kazuteru Komori, Director, Marketing Division Contact Person

Main Suppliers Sales and Net ProfitsNet ProfitsSales (Mil. \)Year

Mitsubishi Corp., Marubeni Corp., Sumitomo Corp., 10,957561,8621995 Nisshin Toa, Toshoku, Oriental Yeast Co., Ltd.10,962573,7311996

7,220582,0251997

Company Profile and Strategies% of Total Key Products

Largest baking company in Japan. Has licensing agreement with17Breads Nabisco to manufacture crackers and biscuits.38Pastries

12Japanese Cakes Company has nationwide operations and strong sales network14Western Cakes for their products (bread, Japanese and western desserts,11Prepared Bread, Cooked Rice cooked rice and delicatessen products.8Confectionery & Rice Cakes Experiencing growth in flavored bread and delicatessen products.

Yamazaki also operates convenience stores and cafeteria chains, with convenience store business growing rapidly. Main Brands Company operates in-store-bakery-shops in 6 overseas countries. Double Soft, Soft Cheese (steamed bread), Marugoto Banana (cake),

Calcium Bread Company principle is to provide high quality and reasonable prices and puts very much attention and efforts in each of their operations such as product planning, facility planning, quality Main Ingredients control, purchase of ingredients and education. One of the keys for Yamazaki's success is the great creativity of its products. Flour, yeast, calcium supplement, nuts, milk and dairy products, bananas

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GAIN Report #JA9092 Page 29 of 29

UNCLASSIFIED Foreign Agricultural Service/USDA

Confectionery, Snack Food Product Sector(s) Yamazaki Nabisco Co., Ltd. Company Name

1,250 Number Of Employees 1-26-2, Nishishinjuku, Shinjuku-ku Address 1 Number of Factories Tokyo 163-0590

Overseas Contact 03-3348-5620Fax Number 03-3344-6211 Phone Number

Nabisco Holdings Co. [email protected] Email 7 Campus Drive, P.O. Box 311 http://www.mediagalaxy.co.jp/y-nabisco/ Web Page Address Parsippany, NJ 07054 Shinichi Nishimura, Manager, General Affairs Contact Person Tel: 973-682-5000 Fax: 212-969-9178 Phone: 03-3344-6211 Fax: 03-3348-5620 Main Suppliers Sales and Net Profits

Net ProfitsSales (Mil. \)Year Nabisco Holdings Co. (USA)--44,8401995 Nichimen Corp.--45,5101996

----1997

Company Profile and Strategies% of Total Key Products

Company is engaged in the packaged food business. Products 100Foodstuffs include: cookies, crackers,sauces, condiments, nuts, candy and gum.

Company has strategy to expand new product sales. Since forming joint-venture in 1970, Yamazaki Nabisco has been selling Nabisco products in Japan.

Company is developing new products by cooperating with the Main Brands US RJR. Nabisco.

Ritz Crackers, Entry, Premium Crackers, Butter Cookies, Chips Ahoy (chocolate Import of ingredients is increasing and is expected to increase cookies), Oreo (cream sandwiches cocoa cookies), Ritz Bits Sandwiches, further while the import of final products is decreasing. Chipster, Pecola, Cocoa Wafers, Custard Wafers, Lemon Pack Cookies

Creating more environmentally-friendly products by using wrappers which are easy to recycle. Main Ingredients

Wheat, salt, vegetable oil, butter, margarine, chocolate powder, vegetable extracts, cream, cocoa powder, fruit extracts (lemon)