Vision/Mission
Mission
“Looking at people’s lifestyles and providing true satisfaction.”
The Group makes every effort to create products and provide services that, while enriching lifestyles, help people live healthy and happy lives.
Vision
“The Group aims to be a food pioneer, supplying exceptional foods and logistics services; creating and providing products and services that satisfy customers in terms of quality and value; and growing together with society as a trusted, respected business.”
Business Description
Since its founding, Nichirei has been a pioneer in the food industry and has developed a wide range of businesses that have made us more than just simply a food producer.
Our core business is built on cooling power: the ability to ensure the long-term storage of food and, at the same time, preserve the original quality of the raw ingredients used.
This has enabled us to make Japan’s food culture even better by meeting the expectations, and earning the trust, of society as we seek further growth.
Background
Nichirei Corporation’s mission since its founding has been to support food consumption in Japan.
Nichirei was founded in 1942 as Teikoku Marine Products Control Company, dealing in buying and selling of marine products, ice production, and refrigerated and frozen storage.
In 1945, after World War II, the company became a joint stock corporation under Japan’s commercial code, changing its name to Nippon Reizo Co., Ltd. The company expanded its food-related businesses centered on “cooling power” (frozen foods). Nippon Reizo changed its name to Nichirei Corporation in 1985, and in 2005 transitioned to a holding company structure with five operating companies. (Nichirei Proserve Inc., a provider of shared business support services, merged with the company on April 1, 2013.)
As of the end of March 2015, the Nichirei Group comprised 73 subsidiaries and 16 affiliates, with 13,551 employees.
Products/Services
Processed Foods
Nichirei holds the top market share in Japan for frozen foods, and also handles acerola ingredients, retort-pouch foods, and health/wellness foods. Prepared frozen foods account for around 70% of sales (combined total of commercial-use and household- use products).
In overseas operations, in 2012, Nichirei acquired InnovAsian Cuisine Enterprises Inc., a US company specializing in Asian foods, which has been the growth driver for the overseas business.
Exports of chicken products from GFPT Nichirei (Thailand) Co., Ltd. to Europe have also increased considerably in recent years.
Logistics
Nichirei offers a wide range of logistics functionality, including refrigerated and frozen storage, sorting, transport, and delivery. We make full use of these functions to offer customers optimized logistics services.
In addition to Japan, Nichirei has refrigerated warehouses and distribution centers in Europe and China.
We also recently established a joint venture (an equity-method affiliate) with Thailand-based conglomerate Siam Cement Group, which began operations in 2013.
Marine Products, Meat and Poultry Products
In the marine products business, Nichirei procures and sells premium food materials from producing regions in Japan and overseas. Compared to competing companies in Japan, Nichirei handles a wide range of products, including shellfish, herring roe and other types of fish eggs, as well as octopus, with a particular strength in shrimp products.
In the meat and poultry products business, Nichirei procures chicken, pork, and beef from premium supplier partners in Japan and overseas, and sells these to retail shops and restaurants.
Location
Nichirei Higashi-Ginza Building 6-19-20 Tsukiji, Chuo-ku, Tokyo 104-8402 Japan
Financial Projection
Forecast of Fiscal Year Ending March 31, 2017 (April 1, 2016 through March 31, 2017)
(Million yen; amounts less than ¥1 million are omitted)
| Processed Foods | Marine Products | Meat & Poultry Products | Logistics | Real Estate | Other | Adjustments | Consolidated |
Net sales* | 203,000 | 70,000 | 86,000 | 187,000 | 4,500 | 4,900 | (19,700) | 535,700 |
Operating Income | 8,000 | 600 | 600 | 10,300 | 2,000 | 600 | (400) | 21,700 |
*Net sales include intra-group sales and transfers
Company Goals & Objectives
Medium-Term Management Plan (Fiscal 2016-2018)
Considering the mounting instability in the global economy, we expect that fluctuations in exchange rates, energy prices, and other costs will continue. In Japan, we anticipate that labor shortages will become more severe due to demographic changes, while consumption patterns will diversify with changes in family composition.
The new business plan aims to contribute to the resolution of social issues through business expansion, while accurately gauging the changes in the operating environment to ensure stable and steady growth. It will continue capital expenditures in the processed foods and logistics businesses as the previous plan did, and enhance enterprise value by strengthening the foundations for the growth of the corporate group.
General Strategy
Fiscal 2018 Group Targets
Net sales: 560 billion yen
Overseas sales: 81.9 billion yen
Operating income: 23.6 billion yen
Net income: 14.7 billion yen
ROE: 9% at least
Total capital investment over three years (including leasing): 86.8 billion yen
Management
Representative Director and Chairman: Toshiaki Murai
Representative Director and President: Kunio Otani
Employees
Total: 14,118
