Expansion of Distribution Channels and Industry-Academic Research in the Herb Business

「During the cumulative second quarter of the current fiscal year, the Group, consisting of the company and its affiliated companies, transferred the Herb Garden operations and withdrew from the business.」

「In the Herb Garden operations, wholesale sales were strong because herb production increased at the Herb Garden operated by consolidated subsidiary 大多喜ハーブガーデン. However, demand from visitors to the restaurant and shop, which had been strong in the first quarter of the previous fiscal year after the company captured demand for short-distance travel, was weak in the first quarter of the current fiscal year. As a result, revenue was ¥56.498 million, down 10.3% year on year, while segment profit (operating profit) was ¥1.502 million, up 3.6% year on year.」

「In the Herb Garden operations, the Herb Garden operated by consolidated subsidiary 大多喜ハーブガーデン benefited from initiatives to attract visitors through social media and capture the recovery in domestic tourism demand. Revenue from the Herb Garden business recovered to pre-pandemic levels and remained steady, but higher capital investment and repair costs resulted in revenue of ¥157.601 million, up 2.3% year on year, and a segment loss (operating loss) of ¥16.030 million, compared with an operating loss of ¥2.335 million in the same period of the previous year.」

「At the Herb Garden operated by consolidated subsidiary 大多喜ハーブガーデン, initiatives to attract visitors through social media and capture the recovery in domestic tourism demand proved effective, and revenue from the Herb Garden business remained steady above pre-pandemic levels. However, higher capital investment and repair costs resulted in revenue of ¥113.476 million, up 7.5% year on year, and a segment loss (operating loss) of ¥18.935 million, compared with an operating loss of ¥11.645 million in the same period of the previous year.」

「At the Herb Garden operated by consolidated subsidiary 大多喜ハーブガーデン, initiatives to capture demand for outings to a nearby tourist attraction proved effective, and revenue from the Herb Garden business remained steady above pre-pandemic levels. However, higher capital investment and repair costs resulted in revenue of ¥62.966 million, up 11.1% year on year, and a segment loss (operating loss) of ¥6.317 million, compared with an operating loss of ¥4.975 million in the same period of the previous year.」

「Initiatives to capture demand for outings to a nearby tourist attraction proved effective, and revenue from the Herb Garden business remained steady at a level exceeding pre-pandemic levels. However, in the production and wholesale business, closures and shorter operating hours in the foodservice industry, as well as reduced harvests caused by torrential rain and sharp temperature changes, prevented stable production and shipments. Difficult conditions continued, with results falling below the previous year's level.」

「At the Herb Garden operated by consolidated subsidiary 大多喜ハーブガーデン, initiatives to capture demand for outings to a nearby tourist attraction proved effective despite the COVID-19 pandemic. Although there were negative factors, including the third declaration of a state of emergency and poor weekend weather, revenue from the Herb Garden business remained steady.」

「At the Herb Garden operated by consolidated subsidiary 大多喜ハーブガーデン, advertising strategies using social media and other channels captured demand for outings to a nearby tourist attraction during the COVID-19 pandemic. As a result, visitor numbers increased to 256.4% of the previous year's level, or 150.7% of the level two years earlier, while revenue rose to 212.7% of the previous year's level, or 117.9% of the level two years earlier, significantly exceeding pre-pandemic levels. In the production and wholesale business, however, the company was affected by closures and shorter operating hours at its major foodservice customers and therefore focused more on wholesale sales to mass retailers. Although sales to mass retailers increased to 121.7% of the previous year's level, this was insufficient to offset the decline in foodservice sales, and difficult conditions continued.」

「Although the Herb Garden operated by consolidated subsidiary 大多喜ハーブガーデン experienced a decline in visitors because of the impact of COVID-19, advertising strategies using social media and other channels proved effective, ultimately increasing visitor numbers and driving steady revenue growth. Meanwhile, wholesale sales to the foodservice industry struggled as restaurant chains were forced to suspend operations because of the spread of the infection, while wholesale sales to supermarkets grew on demand for at-home consumption and recovered to approximately the previous year's level. As a result, revenue was ¥138.248 million, down 8.5% year on year, while segment profit (operating profit) was ¥6.939 million, up 216.7% year on year.」

「Efforts to strengthen information dissemination through various social media platforms increased the total number of social media followers to more than 15,000. Increased promotional opportunities through various media also contributed to a 16% year-on-year increase in visitors to the Herb Garden.」

「The Herb Garden operated by consolidated subsidiary 大多喜ハーブガーデン was heavily affected by the declaration of a state of emergency related to COVID-19. Self-restraint from going out and the cancellation of events during the Golden Week period resulted in a substantial 59% year-on-year decline in visitors. In addition, in the wholesale herb business serving restaurants and other customers, wholesale revenue from foodservice companies declined substantially because major customers in the foodservice industry were forced to suspend operations across the board.」

「At the Herb Garden operated by consolidated subsidiary 大多喜ハーブガーデン, the active holding of various events resulted in a substantial 33% year-on-year increase in visitors during the period from March 2019 to February 2020.」

「As a result, revenue was ¥151.108 million, up 5.6% year on year, and segment profit (operating profit) was ¥2.191 million, compared with an operating loss of ¥5.008 million in the same period of the previous year.」

「Although Typhoon No. 15, which struck agricultural production areas including Chiba and Ibaraki in September 2019, caused significant damage at the Herb Garden, including the collapse of several greenhouses, the company actively held various events, including a collaboration project with Isumi Railway, and promptly revamped the restaurant menu. As a result, the number of visitors to the Herb Garden was approximately 10,000, up 16% from the same period of the previous year. Revenue was ¥113.859 million, up 15.8% year on year, and segment profit (operating profit) was ¥10.591 million, also up 15.8% year on year.」

「At the Herb Garden operated by consolidated subsidiary 大多喜ハーブガーデン, the 10-day Golden Week holiday, events and PR activities across various media proved effective, and the number of visitors in the first quarter increased substantially, by 30% year on year. In addition, in the wholesale herb business serving restaurants and other customers, the company made progress in developing new customers and worked to establish a system for stable product supply. As a result, revenue was ¥78.328 million, up 18.9% year on year, and segment profit (operating profit) was ¥19.432 million, up 50.7% year on year.」

「For the Herb Garden operated by consolidated subsidiary 大多喜ハーブガーデン, advertising on social media and PR activities across various media continued to prove effective, and the number of visitors in the fourth quarter increased 13% year on year. However, in the wholesale herb business serving restaurants and other customers, crop damage affecting basil, the main product, in the third quarter continued to have an impact in the fourth quarter, resulting in a slight decline in revenue and higher procurement costs.」

「Active PR activities across various media proved effective, and the number of visitors to the Herb Garden operated by consolidated subsidiary 大多喜ハーブガーデン increased 12% year on year. However, in the wholesale herb business serving restaurants and other customers, crop damage affected basil, the main product. To prevent shortages caused by lower production, the company purchased basil from other growers, among other measures, resulting in higher procurement costs.」

「The Herb Garden operated by consolidated subsidiary 大多喜ハーブガーデン pursued greater exposure through active PR activities across various media. However, the record-breaking heat this summer forced it to suspend operations for several days, including on the dates of events expected to attract many visitors, while typhoons also led to shorter operating hours. As a result, the number of visitors to the Herb Garden declined. Meanwhile, in the wholesale herb business serving restaurants and other customers, it acquired 4 new customers, including 4 major foodservice companies.」

「The Herb Garden operated by consolidated subsidiary 大多喜ハーブガーデン continued to pursue initiatives to attract new visitors through promotional strategies involving television information programs and by holding various events. It also focused on improving visitor circulation within the garden so that customers could enjoy their time there, working to enhance customer satisfaction. As a result, revenue was ¥51.080 million, down 4.1% year on year, while segment profit (operating profit) was ¥12.897 million, up 18.9% year on year.」

「The herb garden operated by the consolidated subsidiary 大多喜ハーブガーデン pursued initiatives to attract new visitors through promotional strategies involving television programmes and the active organisation of various events as a tourist attraction in the Boso area. It also focused on improving visitor circulation within the garden so that customers could enjoy multiple attractions and worked to improve customer satisfaction. In addition, it launched consulting sales activities leveraging its expertise in developing herb menus cultivated through restaurant operations. Adoption by major restaurant chains progressed, contributing to expanded sales channels.」

「The herb garden operated by the consolidated subsidiary 大多喜ハーブガーデン pursued visitor growth through promotional strategies involving television information programmes and the active organisation of various events, as a tourist attraction in the Boso area. As a result, net sales were ¥152.392 million, up 9.3% year on year, while the segment loss (operating loss) was ¥3.268 million, compared with an operating loss of ¥7.098 million in the same period of the previous year.」

「The herb garden operated by the consolidated subsidiary 大多喜ハーブガーデン saw increases in visitor numbers and average customer spending as a result of media publicity as a tourist attraction in the Boso area.」

「The herb garden operated by the consolidated subsidiary 大多喜ハーブガーデン attracted considerable attention after being featured in various media as a tourist attraction in the Boso area, and we worked to expand sales channels.」

「The Graduate School of Juntendo University, with which we entered into a business alliance agreement in March 2016, provided advice on the effects and efficacy of herbs from a medical perspective, which we used in new business development sales to major restaurants and others. We also began procuring spearmint and coriander from マイベジタブル, despite strong market demand, because production at 大多喜ハーブガーデン had been limited. Initiatives to expand sales channels are progressing smoothly.」

「In addition to expanding distribution channels for our products, we substantially renovated the herb garden in April 2016, attracting many visitors from April through May.」

「The Company developed distribution channels for products handled through a trading company and began industry-academia joint research with the Department of Hospital Administration, Graduate School of Medicine, Juntendo University, aimed at researching herbs and developing products.」