By pushing boundaries, empathizing with society and remaining true to its distinct identity, Kanetetsu Delica Foods is pioneering new seafood products to delight consumers and tackle global challenges.
For 11 consecutive years, we’ve seen Japanese food-related exports increase. If we look at up to 2023, they reached JPY 1.45 trillion. This has been consolidated overseas by the growing popularity of Japanese restaurants, which grew from 55,000 in 2013 to more than 200,000 today. How do you account for this substantial rise in Japanese food exports? Why is now the time for washoku to shine internationally?
We believe that the international popularity of Japanese cuisine began to gain serious traction 11 years ago when UNESCO inscribed Washoku as an Intangible Cultural Heritage of Humanity.
In addition, Japanese cuisine is well-known for its health benefits, a characteristic that aligns perfectly with global health-conscious trends. This widespread acceptance is further supported by the fact that Japan is home to the world's longest-living population, underscoring the benefits of the Japanese diet.
Over the next 15 years, Japan anticipates significant demographic shifts that will be characterized by both an aging and declining population. In 2023, the birth rate will reach a low point of 1.2, which will inevitably have a substantial impact on Japanese businesses and industries across the board. Can you talk about some of the challenges or opportunities this creates for your company and what you’re doing internationally to help address the shrinking domestic market?
This challenge is one that nearly all companies in Japan are currently facing. At our company, the average employee age is 44, with approximately 40% of our workforce in their 50s and 60s. The realities of an aging workforce and labor shortages are unavoidable.
In response, we are actively working to pass down the skills and techniques of our artisans to the next generation. Through tools like "Work Instruction Manuals" and "Video Manuals," we aim to visualize and standardize these skills so that anyone can perform tasks at a consistent level.
We are also focusing on phased talent development using "Skill Maps," automating production lines, and creating supportive environments for overseas talent. Additionally, we launched "Global New Graduate Recruitment" two years ago, which has allowed diverse talents to thrive not only in sales but also in back-office operations.
Company Headquarters
What are some of the things you are doing internationally to compensate for the shrinking domestic market? Are there any specific countries you are targeting for expansion?
Looking at the domestic production volume of surimi products in recent years, it peaked in 1983 and has since declined by half over the past 40 years. On the other hand, from a global perspective, the per capita consumption of aquatic food products has more than doubled over the past 50 years, driven by a growing global focus on health.
Regarding surimi products, approximately 77% of the world’s consumption occurred in Japan 30 years ago, around 1995. However, this ratio has reversed over the past three decades, and currently, about 75% of the world’s surimi products are consumed overseas.
Furthermore, the designation of Washoku as an Intangible Cultural Heritage by UNESCO has significantly contributed to the global promotion of Japanese cuisine. The number of Japanese restaurants abroad has been rapidly increasing, with ramen gaining immense popularity in recent years. However, sushi remains the most iconic and widely recognized Japanese dish. In international markets, roll sushi, such as California Rolls, is predominant, and imitation crab (Crab-flavored fishcake) is widely used.
Currently, Japan produces approximately 50,000 tons of Crab-flavored fishcake annually, whereas the production abroad has reached around 550,000 tons. In this context, our company has been strengthening its overseas expansion, focusing on Crab-flavored fishcake. We now export our products to 20 countries, including the United States, Taiwan, and Hong Kong.
Recently, there has been an increasing number of inquiries from countries in the Middle East and South America, recognizing the high quality of "Made in Japan" Crab-flavored fishcake.
Your products distinguish themselves in the competitive seafood market by delivering versatile and accessible alternatives to traditional seafood items such as crab. You do this without sacrificing taste or texture, offering a satisfying and authentic experience. Can you tell us the unique qualities your products bring to the market? How do you differentiate your options from other seafood options in the market?
Our core competence lies in what we call the "Kanetetsu Essence."
This essence is defined by three key elements that shape the Kanetetsu brand: "Innovative," "Hospitality (Empathy)," and "Originality."
"Innovative" represents our commitment to pushing boundaries and challenging the status quo to achieve groundbreaking progress.
"Hospitality (Empathy)" reflects our ability to empathize with customers and society, addressing their needs and solving their challenges. I believe that empathy serves as the foundation for enhancing the quality of hospitality, while hospitality provides opportunities to nurture empathy. Striking a balance between the two leads to better service and stronger customer relationships.
"Originality" highlights our uniqueness and our ability to deliver distinctly Kanetetsu products that stand out in the market.
Through these elements, we aim to create a "Kanetetsu brand experience" that resonates with customers and society, forging strong connections and differentiating us from competitors.
For example, under "Innovative," Kanetetsu has a long history of pioneering achievements:
By continuously embracing change and taking on new challenges, we have expanded our business and established a culture rich in a spirit of innovation. This "challenger mindset" has been passed down through generations of our team and remains a defining feature of Kanetetsu's DNA.
Under "Hospitality (Empathy)," one of the philosophies that drives our approach to product development is the concept of "Neri-versal Design." This embodies our commitment to creating products that bring happiness to those who enjoy them. Our production is rooted in this people-centric philosophy, ensuring that our work resonates with and supports those we serve.
Which of your products offers the most growth potential for your company, not only in Japan but also abroad?
We believe that the "Crab-flavored fishcake " category has significant growth potential. Among our products, we see great promise in items like "Almost Crab" and "Sea Delica.
Do you have a favorite product that you would like to recommend?
Earlier, we mentioned that the Kanetetsu brand is defined by three key elements, and "Originality," the third pillar, is exemplified by our product "Almost Crab."
Our product strategy is rooted in the concept of "Super Niche Top," which involves developing unique, niche products that competitors avoid, enabling us to expand our business.
For instance, when we launched "Almost Crab" in 2014, real crab was becoming increasingly expensive and less accessible for everyday dining. In this context, we asked ourselves: "What if we could create an unprecedented crab-flavored fishcake so close to real crab that people wouldn’t need to buy expensive crab or go out to eat it?" This thought inspired the development of "Almost Crab."
Despite the presence of many imitation crab products in the market, we pursued the ambitious goal of creating a crab-flavored fishcake so close to real snow crab that even real crabs would envy it. This commitment to creating truly distinctive products is one of our company’s hallmarks, and "Almost Crab" stands as a representative example of this vision brought to life.
Imagine that someone reading this doesn’t know of imitation crab. What would you say are the main benefits of eating a product like this? What are the differences between real crab meat and your imitation crab product?
Six years ago, a television program highlighted Crab-flavored fishcake as the "ultimate muscle-building food." The show visited the homes of "healthy longevity" individuals, where it was revealed that many of them kept Crab-flavored fishcake in their refrigerators as a protein source to prevent muscle loss (frailty). The program emphasized the health benefits of Crab-flavored fishcake as "fish protein," showcasing its "health value-added" properties: low calorie, low fat, highly digestible, and rich in protein. This healthiness is indeed one of the key attractions of Crab-flavored fishcake.
Additionally, compared to real crab, our products also carry an added "emotional value." I’d like to share two stories that illustrate this point.
The first story comes from a new graduate who applied to join our company. This individual had always disliked crab and could not eat it. However, his family encouraged him to try "Almost Crab," saying, "You’ll definitely enjoy it; just give it a chance." Hesitant but curious, he tried it and found it delicious. The meal sparked lively conversation at his family table. This experience inspired the applicant to say, "I want to create products at Kanetetsu that brighten dining tables and bring joy to families."
The second story, though not about Crab-flavored fishcake, involves our product "Almost Ikura (Salmon Roe)," which we launched a few years ago. Before its release, a young boy with a fish egg allergy could not partake in "ikura" during family celebrations like Hinamatsuri (Girls' Day) when everyone else enjoyed chirashi sushi. The family shared that the boy often felt left out. However, after the introduction of "Almost Ikura," he was able to joyfully enjoy sushi with his family. We even received a letter of gratitude from the family, describing how much this meant to them. Similar letters came from expectant mothers, unable to eat raw fish, who expressed their delight at being able to share the experience of "ikura" with their families.
Our tagline, "Nourishing Life," reflects our commitment to not only filling stomachs but also enriching hearts. We prioritize creating products that deliver not just deliciousness, but also "surprise," "excitement," "joyful moments with family," and "solutions to challenges." Through these efforts, we aim to bring "vitality" and "enrichment" to everyday life and contribute to enhancing the quality of life for each of our customers. This aligns with our corporate philosophy of contributing to the rich and fulfilling lives of people around the world.
Your company has bolstered your market position through strategic moves, including your 2016 acquisition of Dolphin Trading Company. Are you looking to expand your international partnership network or make any new acquisitions? If so, which types of partnerships, acquisitions, or countries are the most appealing to you?
Nine years ago, Dolphin Trading became a new member of the Kanetetsu Group. Since then, we have been strengthening our collaboration to create synergies in three key areas: "raw material procurement," "development of overseas production bases," and "expansion of sales channels."
While we cannot disclose the details yet as it is not officially announced, we signed an alliance agreement last year with a Southeast Asian company. The goal of this partnership is to approach the North American and Chinese markets. Currently, due to restrictions on seafood imports from Japan into China, we plan to have our Southeast Asian partner produce products for the Chinese market. Additionally, as our production lines in Japan are not certified for halal production, we are also exploring opportunities in the Middle Eastern market in collaboration with this partner.
In any case, we believe that expanding partnerships both domestically and internationally is essential for accelerating our global expansion in the future.
Imagine that we come back in six years and have this interview all over again. What goals or dreams do you hope to achieve by the time we come back for that new interview?
When you visit us again six years from now, we hope to be widely recognized as a company that solves global food challenges.
A startling paper has already been published predicting that by 2048, "the world's oceans may be devoid of fish." In response to such pressing concerns, we aim to leverage our strength in "technology for recreating at the 'Almost Series' " to recreate "real seafood" using plant-based ingredients instead of fish. This represents our commitment to developing plant-based seafood and addressing these global challenges.
By continuing to provide new value to society, we aspire to evolve into a "lifestyle brand" that brings happiness to every corner of people’s lives while contributing to a sustainable future for our planet.
To read more about Kanetetsu Delica Foods, check out this article about them
For more information, please visit their website at: https://en.kanetetsu.com/
0 COMMENTS