Based on an IR interview with DELICA FOODS HOLDINGS CO.,LTD., this article outlines the key points of its cold-chain-based business model and growth strategy. The company's long-term medium-term management plan sets out a transformation of three portfolios, covering logistics, customers and products, as well as a policy of expanding domestic production.
DELICA FOODS HOLDINGS CO.,LTD. supplies fresh produce nationwide as an integrated vegetable processor, focusing on cut vegetables, and has rolled out its FS model nationwide, managing every stage from processing through delivery with a 5°C cold chain. The company has obtained certifications including ISO 22000 and is characterized by business operations focused on freshness and quality.
The company was founded in 1979. Its current growth strategy centered on the cold chain gained momentum when its president took office in 2009, and sales grew to approximately ¥53 billion through the construction of new facilities involving capital investment of around ¥3 billion. The company has expanded its supply network nationwide around cut vegetables, with its business focused on transactions with the foodservice, prepared-food and fast-food industries.
Its growth strategy is set out in the Fifth Medium-Term Management Plan, which calls for transformation of its three portfolios covering business, customers and products. In addition to strengthening its logistics business, using an in-house logistics subsidiary to shorten lead times and expanding external transactions, the company plans to increase the share of higher-value-added products such as meal kits, sauces and dressings, promoting medium- to long-term reform of the fresh-produce supply chain. To improve domestic self-sufficiency, it is also considering domestic production of onions, long green onions and carrots, as well as establishing long-term storage facilities.
A key point is that the company's business infrastructure serves a role akin to social infrastructure supporting the foodservice and prepared-food industries, and that a facility shutdown could affect a wide range of stores. Over the long term, the company aims to achieve sustainable agriculture in cooperation with farmers and contribute to the SDGs, pursuing a growth strategy with a 10- to 20-year outlook.