A Vision for the Future of the Kikkoman Group
– Making Kikkoman Soy Sauce a Truly Global Seasoning –
To coincide with its 50th anniversary in the U.S. market, Kikkoman Corporation has adopted “Global Vision 2020” as its vision for the future of the Kikkoman Group and the basic strategy for reaching those goals by year 2020.
Vision for the Future
- With Global Vision 2020, the Kikkoman Group sets the following three qualitative goals:
- (1) Make Kikkoman soy sauce a truly global seasoning
- (2) Be a company that supports a healthy lifestyle through food
- (3) Be a company whose existence is meaningful to the global society
The basic strategy for realizing our vision for the future is comprised of the following four elements:
(1) Global Soy Sauce Strategy
- 2020 Goals:
- Aim to reach sales of 300 billion yen, sales volume of 1 million kiloliters of soy sauce, achieve 12% market share in volume, and become number one in the world in terms of sales value.
- Strive to promote high value-added products and expand soy sauce derivative seasonings.
- North America:
- The North American market has entered a period of stable growth. Promote the development of high value-added products and further cultivate foodservice and industrial markets.
- Continue to achieve double-digit growth. Stimulate new demand in existing major markets and cultivate new markets in Russia and Central and Eastern Europe.
- Considered to be a market that will support Kikkoman’s growth in 10 years into the future. It is important to promote the use of naturally brewed soy sauce and cultivate markets in China and India.
- South America, Africa:
- These are markets that have the potential to support Kikkoman’s growth after 2020.
Kikkoman plans to realize its growth vision for 2020 and beyond by applying Kikkoman’s soy sauce business model throughout the world.
- Manufacturing Centers:
- At present, Kikkoman has seven overseas manufacturing facilities. We plan to increase this further to around twelve by the year 2020. In North America and Europe, simply increasing production at existing production facilities will not be enough to meet the growing demand for Kikkoman products. As a result, it will be necessary to build a third factory in North America and a second one in Europe by around 2015. We will also determine the feasibility of building factories in South America. As for building manufacturing centers in Asia, we will consider various options, including joint ventures with local companies.
- R&D Centers:
- At present, Kikkoman has its product development headquarters and R&D headquarters in Japan. We built R&D centers in Singapore, Europe, and the United States, respectively. In addition to our existing marketing companies in the United States and Europe, we will enhance our global R&D structure in order to enable product development that meets the needs of each region in a timely fashion.
(2) Global Strategy for Oriental Food Wholesale
The second component of Global Vision 2020 is our Global Strategy for Food Wholesale. The current boom in Japanese food overseas is expected to continue over the coming years, and the Japanese government is actively supporting efforts to promote Japanese food culture abroad. Under these favorable conditions, we will consolidate our position as the world’s leading wholesaler of oriental food by further refining our wholesale network, strengthening our distribution system, and utilizing the know-how we have accumulated over the past half century.
In the U.S., we transferred the headquarters of JFC, our wholesale subsidiary, to Los Angeles in 2008 and strengthened our distribution system. In Europe, we will continue to make investments in existing distribution centers, including the relocation and expansion of warehouses. Furthermore, plans are being made to expand Kikkoman’s distribution centers into South America, Southern Europe, Central and Eastern Europe, the Middle East, China, Southeast Asia, and other regions.
(3) Del Monte Business Strategy
Efforts will be made to expand the Del Monte business at home and abroad. Abroad, this will be achieved by exercising the rights Kikkoman holds to use the Del Monte trademark in the region of Asia and Oceania, excluding the Philippines. The competitiveness of Del Monte products in the region will be enhanced by effectively utilizing our production center in Thailand and our facility in China, which began production in October 2008. In China, our objective is to advance into the market by establishing sales offices to support our production facility.
In Japan, we will use the Kikkoman Group’s management resources to expand our beverage business and to make inroads into the chilled sector.
(4) Health-related Business Strategy
Kikkoman will achieve growth in the field of “food and health” by utilizing the know-how it has accumulated from brewing soy sauce and from playing a central role in Japanese food culture.
At present, domestically, Kikkoman is actively engaged in the areas of clinical diagnosis and hygiene inspections. Overseas, Kikkoman is developing its health food business through corporate acquisitions. In addition to achieving growth in these areas, Kikkoman will strive to expand its health-related business, including the consideration of additional corporate acquisitions.
Become a Company Whose Existence Is Meaningful to Global Society
Kikkoman believes that by implementing the four components of global Vision 2020, it will be possible to provide commodities products and services that have of value to the people of the world. Accordingly, by fulfilling its social and public responsibility, Kikkoman aims to become a company whose existence people all over the world will come to feel is good for global society.
(Revised in March 2009)