Strengthening high-value-added products and own-brand products

「Regarding the expansion of sales of the Group’s own-brand products, which it considers its most important medium- to long-term issue, the Group is gradually increasing their contribution to business performance by actively developing new products and conducting promotional activities while strengthening its marketing and sales strategies.」

「At the same time, we have positioned expanding sales of proprietary-brand products as our highest medium- to long-term priority, actively renewing designs and introducing new products, and are gradually increasing their contribution to results by strengthening marketing and sales strategies.」

「At the same time, we have positioned expanding sales of proprietary-brand products as our highest priority and are improving our marketing and sales strategies to strengthen product and brand capabilities, including by renewing the package design of the core ASTER canned chu-hai series.」

「In September, we launched a limited-quantity product in the core ASTER canned chu-hai series, “ASTER Iwate Mountain Grape Chu-Hai,” made with straight juice from mountain grapes grown in Iwate Prefecture. We focused on accelerating turnover of our proprietary-product lineup and strengthening product capabilities with a view to nationwide expansion.」

「For proprietary-brand products, we launched the black-vinegar cassis-flavored refreshment drink “SU:RESH” in February, and in March launched a new RTD brand using straight juice from domestic fruits: the 3% alcohol creative cocktails “Iebaru” (Fuzzy Navel/Moscow Mule) and the 7% alcohol, unsweetened “Otona no CRAFT Unsweetened Sour” (Okinawa Ripe Shikuwasa/Ehime Kawachi Bankan). During the fiscal year, we launched 8 new products and 2 renewed products, strengthening our efforts to become a brand-creating company.」

「In Japan, we will expand sales centered on the low-alcohol beverage ASTER, raise awareness of the high quality of the ASEED brand among more customers, and strengthen the overall brand.」

「In September, we launched “ASTER Yamanashi Sun Plum Chu-Hai,” a new flavor in the ASTER chu-hai series delivering the taste of domestic fruit and made with straight juice from plums grown in Yamanashi Prefecture.」

「In June, we launched “Arinomama Grape Sparkling” as a proprietary-brand product, made by blending straight juice from grape varieties used in wine.」

「In March, we launched “ASEED ASTER Arida Mikan Chu-Hai,” which delivers the taste of domestic fruit, and “Queen's Non-Alcoholic Sparkling Taste,” made with juice from wine-grape varieties, and both have been well received. In addition, “ASEED ASTER Okinawa Shikuwasa Chu-Hai” won the Grand Prix at the 61st Japan Food Selection, recognizing the development of ASEED-brand products through Group-wide efforts to enhance value.」

「In the Beverage Wellness Business, we established a branding team to raise awareness of the ASEED brand and have been strengthening sales by communicating approachable themes such as “employees' snack recipes” and “product introductions” through Instagram and Twitter.」

「In the Beverage Wellness Business, we launched the “Aseed Online Store Rakuten Ichiba Store” in July and introduced “ASTER Ainan Gold Chu-Hai,” jointly developed with residents of Ainan, Ehime Prefecture, in September. The product has been well received for its gold-colored can design and aroma and taste reflecting the characteristics of Ainan Gold. We also launched “Tameshite Kanten Coffee Flavor” in the same month and are working to strengthen the brands.」

「In the Beverage Wellness Business, we prepared to launch the “Aseed Online Store Rakuten Ichiba Store” on 1 July to make Aseed-brand products such as the “Tameshite Kanten” relaunched in April and guava tea more accessible and easier to purchase.」

「To raise awareness of proprietary brands including ASEED ASTER, Tameshite Kanten and Funamachi Coffee and let new customers experience their taste, we will strengthen branding through a website relaunch and the use of Instagram.」

「To expand sales of its own-brand products, the company launched 2 new non-alcoholic products in September, with highballs and sparkling wine as their respective flavor profiles, in response to expected growth in demand driven by rising health awareness. Its own-brand RTD, ASEED ASTER, also saw sales volume increase 38.4% year on year, partly due to the effects of TV commercials and other promotional activities.」

「To expand sales of proprietary-brand products, we launched Funamachi Coffee and iced tea in April and our proprietary RTD product “ASEED ASTER Setouchi Lemon Chu-Hai” in June. ASTER sales volume increased 36.7% year on year. Television commercials began on 3 July in areas centered on Hiroshima Prefecture, and the number of stores selling the products also increased substantially.」

「Our original RTD product ASEED ASTER has been well received, particularly the “Ripe Okinawa Shikuwasa” product. We will promote ASTER's distinctive clean taste from straight juice and work to expand our proprietary brands.」

「Our original RTD product ASEED ASTER has continued to benefit from a YouTube promotion conducted in May and has been well received, particularly the “Ripe Okinawa Shikuwasa” product. We will promote ASTER's distinctive clean taste from straight juice and work to expand our proprietary brands.」

「Expand proprietary brands by unifying product branding through promotions」

「Our branded fruit-juice chu-hai, ASEED ASTER, added products using Sicilian lemon juice in April 2019 and Florida grapefruit and Fukushima peach juice in March 2020, bringing the line to four products together with Okinawa shikuwasa. All have been well received as premium chu-hai products made with straight juice.」

「Our proprietary ASTER chu-hai brand uses straight juice from shikuwasa, peach, lemon and other fruits and has been well received as a premium chu-hai. We also worked to expand sales, including by improving our sales website. We export to Taiwan, Hong Kong and Singapore and will develop ASTER as a chu-hai brand in ASEAN countries.」

「ODM manufacturing, through which the company continues to provide brand owners with integrated proposals from product planning and design through manufacturing, remained strong. RTD beverages, a high-growth area, and soft-pouch beverages in their second year of operation drove a 4.9% year-on-year increase in production volume, measured in cases, but revenue declined slightly due to a strategic change in the sales mix.」

「Orders and sales for RTD beverages, which continue to grow strongly, exceeded the plan, led by high-value-added PB products. Our proprietary ASTER chu-hai brand has been well received as a premium chu-hai made with straight juice from locally distinctive fruits.」

「In addition to our ODM business, which offers beverage brand owners an integrated proposal from product planning and design through manufacturing, orders and sales for RTD beverages, a continuing growth area, exceeded the plan, led by premium PB products. Our proprietary ASTER chu-hai brand has been well received as a premium chu-hai made with straight juice from locally distinctive fruits.」

「In addition to ODM (Original Design Manufacturing), through which the company proposes an integrated service to brand owners from product planning and design through manufacturing, orders and revenue for RTD beverages, particularly canned chu-hai, continued in line with plan. The company's own-brand chu-hai, ASTER (Aster), has been well received because it uses juice from regional specialty fruits.」

「In addition to ODM manufacturing, which offers brand owners an integrated proposal from planning and design through manufacturing, orders and sales for RTD beverages, a continuing growth area, progressed as planned, led by high-value-added PB products.」

「Orders and revenue for RTD beverages, whose growth continues, substantially exceeded plan, particularly for high-value-added private-label products. Its own-brand chu-hai, ASTER, was developed as a 3-product series of premium chu-hai beverages using regional specialty fruits—Hiroshima Setoda lemon, ripe Okinawa shikuwasa and Wakayama peach—and has been well received. As a result, revenue from the beverage manufacturing business was ¥10,683 million, up 15.1% year on year, and segment profit was ¥529 million, up 6.1%.」

「宝積飲料株式会社 in Hiroshima Prefecture will further advance the development of distinctive wellness products, enhance synergies with Aseed Brew Co., Ltd.'s Utsunomiya Beverage Plant, and focus on manufacturing and selling beverages under the group's own brands.」

「Orders and revenue for RTD beverages, a growth market, substantially exceeded plan, particularly for high-value-added private-label products. In June, the company launched its own-brand chu-hai, ASTER, as a series of premium chu-hai products using regional specialty fruits: Hiroshima Setoda lemon, Okinawa ripe shikuwasa and Wakayama peach. The series has been well received.」

「High-value-added private-label RTD products using regional specialty fruits substantially exceeded plan. The company also launched ASTER, its own premium chu-hai brand. It will develop ASTER as a premium chu-hai brand in Japan and overseas and raise its recognition.」

「In the Beverage Manufacturing Business, we will continue to promote proposal-based sales of low-alcohol private-label products for retailers and other customers as a priority area expected to continue growing. However, competition is intensifying as beverage manufacturers also strengthen their low-alcohol offerings while beer shipments decline year after year. The Group is focusing on high-value-added RTD beverages without becoming drawn into price competition. At Taiho Beverage Co., Ltd. in Hiroshima, we will focus on product development in the health-oriented beverage field and strengthen the manufacture and sale of beverages under the Group's own brands.」

「In the beverage manufacturing business, the market for private-label soft drinks and low-alcohol RTD beverages for retailers and other customers is steadily expanding. The company will promote proposal-based sales of high-quality, competitively priced products to major retailers. It will also further strengthen the product development capabilities of 宝積飲料株式会社 in Hiroshima Prefecture, enhance synergies with Aseed Brew Co., Ltd.'s Utsunomiya Beverage Plant, and focus on manufacturing and selling beverages under the group's own brands.」

「In addition to soft drinks centered on coffee and carbonated beverages, the company expanded RTD (low-alcohol beverage) manufacturing, a growth area, by developing private-label products tailored to the diverse needs of trading companies and distribution chains. As part of this initiative, it jointly developed “Setoda Lemon CHU-HI,” made with 100% Setouchi Setoda lemons, with a group company of JR West and launched it at station retail outlets.」

「In beverage manufacturing, we will maintain our management policy of prioritizing margins while strengthening our ability to make proposals for further growth. Specifically, for private-label (PB) products developed for trading companies and brand owners, we will focus on manufacturing high-value-added products and avoid direct price competition.」