Risk of Operational Suspensions and Declining Beverage Demand Due to the Spread of COVID-19
First written in FY2020. 6 of 14 entries say "Mitigated", first in FY2023-Q1. Latest entry: FY2024-Q3.
Nihon Shokuhin Kako moved to the "Worse" side of this theme in 2020, the same year as the typical company in this theme.
The whole theme swung hardest in 2020: 103 of 175 companies on the "Worse" side.
51 other companies' latest entry also says "Mitigated".
- FY2024-Q3MitigatedAnnual report
「The classification of COVID-19 under the Infectious Diseases Control Act was changed from Category 2 to Category 5, and sales volumes increased, particularly for beverages, due to the impact of the extremely hot summer. Although demand declined at times as higher prices strengthened consumers' preference for saving, demand from restaurants and other commercial users also trended toward recovery as the flow of people recovered and opportunities to go out increased. As a result, overall sales volumes of saccharification products increased, including sales volumes for commercial applications.」
The change in classification under the Infectious Diseases Control Act, recovery in the flow of people, the extremely hot summer, and recovery in the restaurant industry indicate that the risk of lower demand for beverages and commercial products associated with the COVID-19 pandemic is easing. The Company also described instances in which higher prices led consumers to favor saving, restraining demand. - FY2024-Q1MitigatedAnnual report
「The classification of COVID-19 under the Infectious Diseases Control Act was changed from Category 2 to Category 5, and the flow of people recovered. Although the extended holiday period also benefited from favorable weather, beverage sales volumes declined as higher prices for end products and other factors strengthened consumers' preference for saving. Meanwhile, demand from restaurants and other commercial users trended toward recovery, and sales volumes for commercial applications increased.」
The change in classification under the Infectious Diseases Control Act, recovery in the flow of people, and recovery in the restaurant industry indicate that the risk of lower commercial demand associated with the COVID-19 pandemic is easing. Meanwhile, beverage sales volumes declined due to consumers' preference for saving. - FY2023MitigatedAnnual report
「As people had more opportunities to go out, the extended holiday period benefited from favorable weather, and high temperatures continued during the summer, demand for beverages increased. In addition, demand for commercial products recovered as restaurants extended their operating hours, resulting in higher sales volumes of saccharification products.」
On an annual basis, demand for beverages and commercial products, which had declined during the COVID-19 pandemic, was confirmed to have recovered as activity restrictions were eased, the flow of people recovered, and restaurants extended their operating hours. - FY2023-Q3MitigatedAnnual report
「Although there was a seventh wave of COVID-19 infections, the flow of people recovered as activity restrictions were eased, and product sales volumes trended upward as socioeconomic activity returned to normal.」
Although the seventh wave of infections occurred, product sales volumes trended upward as activity restrictions were eased, the flow of people recovered, and socioeconomic activity returned to normal, indicating that the risk of lower demand due to the COVID-19 pandemic was easing. - FY2023-Q2MitigatedAnnual report
「As restrictions on activities were eased, the flow of people recovered, the extended holiday period benefited from favorable weather, and high temperatures continued during the summer, demand for beverages increased. In addition, demand for commercial products recovered as restaurants extended their operating hours, resulting in higher sales volumes.」
Demand and sales volumes for beverages and commercial saccharification products, which had declined during the COVID-19 pandemic, recovered as activity restrictions were eased, the flow of people recovered, and restaurants extended their operating hours. - FY2023-Q1MitigatedAnnual report
「As restrictions on activities were eased, people had more opportunities to go out, and favorable weather during the extended holiday period increased demand for beverages. In addition, demand for commercial products recovered as restaurants extended their operating hours, resulting in higher sales volumes.」
Demand for beverages and commercial saccharification products, which had declined during the COVID-19 pandemic, recovered as activity restrictions were eased, opportunities to go out increased, and restaurants extended their operating hours. - FY2022-Q3Demand recovered but remained below the previous year's levelAnnual report
「Following the lifting of the state of emergency in October, sales volumes of saccharification products trended upward as demand gradually recovered with the reopening of restaurants. However, the recovery was insufficient to offset sluggish consumption during the period of the state of emergency and other measures, as well as weak beverage sales due to prolonged rain and other unfavorable weather, and sales volumes declined from the same quarter of the previous year.」
Demand from restaurants trended toward recovery after the state of emergency was lifted, but the effects of sluggish consumption during the period of the measures and unfavorable weather remained, and sales volumes of saccharification products fell below the same quarter of the previous year. - FY2022-Q2WorsenedAnnual report
「Although demand for household alcoholic beverages, seasonings, and other products remained firm as people stayed at home, demand for saccharification products used in commercial products such as alcoholic beverages declined due to restaurant closures and shorter operating hours.」
While household demand remained firm, demand for commercial saccharification products continued to decline due to restaurant closures and shorter operating hours. - FY2022-Q1WorsenedAnnual report
「Although demand for household alcoholic beverages, seasonings, and other products remained firm as people stayed at home, demand for saccharification products used in commercial products such as alcoholic beverages declined due to restaurant closures and shorter operating hours.」
While household demand remained firm, demand for saccharification products for commercial products continued to decline due to restaurant closures and shorter operating hours. The risk continued to materialize under the third state of emergency. - FY2021MaterialisedAnnual report
「Demand for saccharification products used in commercial products such as beverages and alcoholic beverages continued to decline due to outdoor event cancellations, capacity restrictions, and restaurant closures and shorter operating hours, resulting in lower revenue. However, sales of saccharification products, which had been sluggish in the same period of the previous year, recovered as consumption of household alcoholic beverages, seasonings, and other products increased while people stayed at home, resulting in higher revenue than in the same period of the previous year.」
While event cancellations and restaurant closures associated with COVID-19 had actually occurred as lower demand and revenue for commercial saccharification products, sales also recovered as household demand increased. - FY2021-Q3MaterialisedAnnual report
「Demand for saccharification products used in commercial products such as beverages and alcoholic beverages continued to decline due to the cancellation of outdoor events, capacity restrictions, and restaurant closures and shortened operating hours, resulting in lower revenue. However, sales increased from the same quarter of the previous year as stay-at-home consumption of alcoholic beverages and seasonings for household use expanded, and sales of saccharification products, which had been sluggish in the same quarter of the previous year, recovered.」
The cancellation of events, capacity restrictions, and restaurant closures and shorter operating hours had actually occurred as lower demand and revenue for commercial saccharification products. Although not quantified, the risk had materialized. Binary assessment: quantified=false, materialized=true. - FY2021-Q2MaterialisedAnnual report
「Demand for saccharification products used in commercial products such as beverages and alcoholic beverages declined, resulting in lower revenue, due to the cancellation of outdoor events, restrictions on capacity, and the impact of restaurant closures and shorter operating hours.」
The cancellation of events and restaurant closures and shorter operating hours associated with the spread of COVID-19 had actually occurred as lower demand and revenue for saccharification products used in commercial beverages. - FY2021-Q1MaterialisedAnnual report
「In terms of sales, demand for dining out declined substantially as restaurants nationwide suspended operations and people refrained from going out amid the COVID-19 pandemic, resulting in lower sales of saccharification products used in commercial products such as beverages and alcoholic beverages.」
The decline in demand for dining out and lower sales of saccharification products for commercial beverages associated with the spread of COVID-19 had actually occurred. Production stoppages were not described in this filing. - FY2020First statedAnnual report
「If the spread of infection in Japan continues for an extended period and infections, particularly among manufacturing personnel, become widespread, there is a risk that operations may be suspended for a certain period. In terms of sales, there is also a risk that beverage consumption and sales volumes may decline due to prolonged calls for people to refrain from going out and an increase in the cancellation of outdoor events.」
The Company identified COVID-19 as a separate major risk for the first time. As of the filing date, it had experienced lower sales volumes for beverages and restrained domestic consumption, and described the potential impact on both operations and demand.