Risk of Procuring Raw Materials and Other Materials Due to Global Supply Chain Disruptions
First written in FY2022. 3 of 5 entries say "Worsened", first in FY2024-Q3. Latest entry: FY2026.
Key Coffee Inc moved to the "Worse" side of this theme in 2024, 5 years after the typical company in this theme (2019).
The whole theme swung hardest in 2026: 14 of 31 companies on the "Worse" side.
5 other companies' latest entry also says "Worsened".
- FY2026WorsenedAnnual report
「② Supply Chain Disruptions Risk that sales will decline because products become difficult to sell due to the following factors ○ Sharp increases in the prices of raw materials and supplies, and shortages of raw materials and supplies, caused by social conditions, natural disasters and conflicts in import-source countries, affecting all green coffee beans and some supplies used in coffee production ● Diversification of sourcing locations ● Review of standard inventory levels for raw materials ● Strengthening cooperation with suppliers」
The company has clarified the previous procurement environment risk as “supply chain disruptions,” identified it as a major risk, and presented diversification of sourcing locations, review of standard inventory levels and stronger supplier cooperation as response measures. - 2026-05-15WorsenedRevision of earnings forecasts
「In addition, the business environment surrounding the supply chain is expected to remain uncertain, including the risk of further increases in packaging-material and logistics costs resulting from soaring crude oil and naphtha prices against a backdrop of the continuing tense situation in Iran and elsewhere.」
Higher crude oil and naphtha prices stemming from the situation in the Middle East have added to the risk of further increases in packaging-material and logistics costs. - FY2024-Q3WorsenedAnnual report
「The procurement price of raw green coffee, which has a significant impact on operating performance, remained high as green coffee prices rose due to persistently low certified stocks in the coffee futures market and concerns over maritime transport following the outbreak of conflict in the Middle East. The yen also continued to weaken. Coffee production costs remained elevated due to higher materials costs, resulting in a challenging operating environment.」
In the global procurement environment, the company has newly identified low certified inventory levels and concerns about maritime transport associated with conflicts in the Middle East, indicating worsening risks of supply chain disruptions and higher procurement costs. - FY2023-Q1RestatedAnnual report
「However, inflation driven by surging resource and raw material prices has continued, against a backdrop that includes the rapid depreciation of the yen and the impact on supply chains from the prolonged Russia-Ukraine conflict.」
The company continues to identify the prolonged conflict, yen depreciation, surging resource and raw material prices, and their impact on supply chains as risks in the global procurement environment. - FY2022First statedAnnual report
「In addition to green coffee beans, the group procures various supplies related to coffee production through imports from overseas. Consequently, it is exposed to global supply chain risks arising not only from production and logistics disruptions in sourcing countries, including China, and disruptions to maritime transport networks caused by container shortages due to the COVID-19 pandemic, but also from the political, economic and social conditions of each country, natural disasters and conflicts.」
The company has separately identified global supply chain risks arising from its dependence on overseas procurement not only for green coffee beans but also for manufacturing supplies, as well as from infectious diseases, logistics disruptions, container shortages, political, economic and social conditions, natural disasters and conflicts, for the first time.