Entry into Vacuum-Heated Vegetables and the B2C Business

「At デリカフーズ㈱, which operates the group’s core fresh produce distribution business, we continued to expand our customer base and actively address the needs of new customers. We also continued to expand our B2C business, centered on 楽彩㈱, which produces meal kits for consumers.」

「Against this backdrop, our group steadily increased sales by capitalizing on the recovery in the food-service industry and growing demand for labor-saving solutions. As part of the transformation of our business portfolio, one of the basic policies under the medium-term management plan Transformation 2024, we expanded the range of industries we serve and actively addressed the needs of new customers. We also continued to expand our B2C business, centered on 楽彩株式会社, which produces meal kits for consumers, and デリカフーズ長崎株式会社.」

「Based on a resolution of the Board of Directors meeting held on 12 August 2022, the Company carried out an absorption-type merger effective 22 October 2022, with its consolidated subsidiary 楽彩株式会社 as the surviving company and its consolidated subsidiary 青果日和研究所株式会社 as the absorbed company.」

「At a meeting of the Board of Directors held on 12 August 2022, the Company approved an absorption-type merger in which its consolidated subsidiary 楽彩株式会社 would be the surviving company and its consolidated subsidiary 青果日和研究所株式会社 would be the absorbed company. The merger took place on 22 October 2022. Both companies were core companies in the Group's new BtoC business and had many shared aspects in their business strategies, including product development and PR. The merger was intended to generate synergies and accelerate the expansion of the BtoC business.」

「In the BtoC business, the Group is advancing the meal-kit business for delivery operators at デリカフーズ長崎株式会社 and expanding the e-commerce business for general consumers under the 青果日和 brand of 青果日和研究所株式会社, which has become a consolidated subsidiary. In addition, 楽彩株式会社, established in August last year, fully launched sales of meal kits to general consumers under the 楽彩 brand in April this year.」

「In the BtoC business launched 2 years ago, the Group has steadily expanded new businesses, including the manufacture and sale of meal kits for delivery companies by デリカフーズ長崎株式会社 and the launch of trial sales of meal kits to general consumers by 楽彩株式会社, newly established in August last year. Segment sales for the current fiscal year are expected to exceed the plan and reach approximately ¥1.5 billion.」

「At present, the lifting of the state of emergency from October has gradually improved the order environment. In the BtoC business launched last year, the Group established a new company, 楽彩株式会社, in August to strengthen the meal-kit business, in addition to its joint venture, 青果日和研究所株式会社, and is developing the necessary operating structure. With a view to improving conditions, the Group will continue to further strengthen its structure to cover the entire produce distribution business.」

「In addition to sales to business formats resilient to the COVID-19 pandemic, such as takeout, drive-through, home delivery and specialty stores, the Group expanded its sales channels by actively marketing to supermarkets and mass retailers, convenience stores, institutional catering and delivery businesses, and focused on acquiring new customers and deepening existing relationships. It is also expanding its new direct-to-consumer business.」

「Specifically, as part of its entry into direct-to-consumer sales (BtoC and DtoC businesses), the Group launched a drive-through greengrocer in April. In July, it launched its own e-commerce site under the Vege Marché brand. In September, it established the joint venture 青果日和研究所株式会社, which began mail-order sales to general consumers under the 青果日和 brand in December. In addition, it established the second-tier subsidiary デリカフーズ長崎株式会社 in December to manufacture and sell meal kits, and began operations in March.」

「Specifically, as part of its entry into direct-to-consumer sales (BtoC and DtoC businesses), the Group launched a drive-through greengrocer in April. In July, it launched its own e-commerce site under the Vege Marché brand. In September, it established an affiliate, 青果日和研究所株式会社, as a joint venture with another industry participant. In December, it began mail-order sales to general consumers under the 青果日和 brand. Also in December, it established a second-tier subsidiary, デリカフーズ長崎株式会社, in Nagasaki Prefecture to manufacture and sell meal kits, with operations scheduled to begin in March.」

「Taking seriously these changes in the business environment, our Group has begun efforts to sell produce directly to consumers. We strengthened the sales division and began proposals drawing on the Group's strengths in preparation for launching a drive-through greengrocer, selling vegetable boxes at large mass retailers, and supplying produce to supermarkets and other retail stores.」

「Our Group recognizes the urgent need to develop new sales channels, including sales through retail formats, as a means of supplying food to consumers, and will work toward the stable and continuous supply of produce.」

「The acquisition of new customers and deepening of existing business relationships progressed steadily, partly because demand for cut vegetables and vacuum-heated vegetables increased as labor shortages became more severe.」

「The acquisition of new customers and deepening of existing business relationships progressed steadily, partly because demand for cut vegetables and vacuum-heated vegetables increased as labor shortages became more severe.」

「The Group developed vacuum-heated vegetables as its third core product following whole and cut vegetables.」

「Demand for cut vegetables and vacuum-heated vegetables increased amid continuing labor shortages.」

「The acquisition of new customers and deepening of existing business relationships progressed steadily, partly because demand for cut vegetables and vacuum-heated vegetables increased as labor shortages became more severe.」

「With regard to the new business, the Group will continue expanding sales channels so that vacuum-heated vegetables become its third core product following cut and whole vegetables.」

「In addition to steady sales in the foodservice industry, a major customer sector for our Group, demand for cut vegetables and vacuum-heated vegetables increased amid continuing labor shortages. As a result, the acquisition of new customers and deepening of existing business relationships progressed steadily.」

「Demand for cut vegetables and vacuum-heated vegetables increased amid continuing labor shortages.」

「The Group has fully launched the manufacture and sale of vacuum-heated vegetables at the West Tokyo FS Center, positioning them as a new business pillar following cut and whole vegetables. Manufacturing and sales have also begun at the Nagoya Kan no Sato Plant and the Nara FS Center, and the Group will actively expand sales channels going forward.」

「The Group also began selling its newly developed product, vacuum-heated vegetables (Note), at the West Tokyo FS Center in June. Customers have valued the product because it is easy to prepare and broadens menu options amid chronic labor shortages in the foodservice industry, and because its use of root vegetables helps stabilize prices during periods of adverse weather. Going forward, the Group will work to expand sales channels for vacuum-heated vegetables.」

「The Group also began producing its newly developed product, vacuum-heated vegetables (Note), at the West Tokyo FS Center in June. Customers have valued the product because it is easy to prepare and broadens menu options amid chronic labor shortages in the foodservice industry, and because its use of root vegetables helps stabilize prices during periods of adverse weather.」

「The West Tokyo FS Center introduced the industry's first mass-production line for vacuum-heated vegetables, along with state-of-the-art production and sanitation equipment.」

「At the newly opened West Tokyo FS Center, the Group plans to produce and sell vacuum-heated vegetables, which were developed to achieve both flavor and productivity.」