Showa Sangyo

Basic Information

Stock Code
2004
Industry
Food Products
Category Detail
Food Manufacturing
Prefecture
Tokyo
Establishment Year
February 1936
Listing Year
May 1949
Official Website
https://www.showa-sangyo.co.jp/
TSE Information
TSE Information
Yahoo! Finance
Yahoo! Finance
Other Companies
Nippn, Nisshin Seifun Group Inc., Nitto Fuji Flour Milling, Torikoshi Flour Milling, Nisshin OilliO, J. Oil Mills

Overview

Showa Sangyo is a comprehensive food manufacturer founded in 1936, holding top-class domestic market share in flour milling, edible oils, and saccharide products, characterized by diversified food ingredients.

Current Situation

Showa Sangyo recorded consolidated sales of approximately 256 billion yen in the fiscal year ending March 2021, boasting the third-largest domestic market share in flour milling and edible oils. It maintains the No. 1 market share in tempura flour, its flagship product, forming a stable revenue base through diversified businesses in flour milling, oils and fats, saccharides, and feed. It sustains competitiveness via domestic and international production bases and a diverse product portfolio. In technology development, it focuses on expanding sales of microwaveable powder products and more, while contributing to the environment and society through initiatives like promoting paternity leave and obtaining the next-generation certification mark to foster a better workplace environment. Moving forward, it will expand consolidated subsidiaries, promote new product development leveraging diverse grain materials as a grain solutions company, and aim for growth and enhancement of sustainable corporate value.

Trivia

Interesting Facts

  • Pioneer company that manufactured and sold Japan's first instant tempura flour.
  • Obtained Ministry of Health, Labour and Welfare's next-generation certification mark for promoting paternity leave.
  • Group deploys diverse grain-related businesses, achieving diversification of food ingredients.
  • The company name Showa Sangyo originates from the Showa era of its founding year.
  • Previously engaged in fertilizer manufacturing and sales business.
  • Long-term transaction relationships with major distributors and retailers as a strength.
  • Self-proclaimed grain solutions company providing wide range of food ingredients with focus on food diversification.
  • Owns numerous manufacturing bases and research institutes domestically and internationally.
  • Holds top-class market share in tempura flour industry.
  • Showa Sangyo products have high recognition through TV commercials and various media.

Hidden Connections

  • Closely collaborates with many food manufacturers on raw material supply, forming industry-spanning network.
  • Influential in feed industry through subsidiaries, with deep ties to livestock sector.
  • Supplies products to small retailers nationwide through long-built sales channels.
  • May have capital and business alliances with competing companies in flour milling industry.
  • Promotes local engagement through sponsorship of food-related events and regional sports teams.
  • Enables wide product range from frozen foods to health foods through collaboration with affiliates.
  • Secures stable raw material procurement system through grain silo ownership.
  • Enhances brand awareness through programs and commercials on multiple media.

Future Outlook

Growth Drivers

  • Expansion of functional food demand due to rising health consciousness
  • Strengthening diversification strategy in saccharides, oils and fats, and feed beyond flour milling
  • High value-added food ingredients and new product development
  • Improved productivity and efficiency through digital technology introduction
  • Building stable supply networks in domestic and international food markets
  • Enhanced market competitiveness through sustainability-focused management
  • Synergy creation from new businesses and group companies
  • Improved consumer loyalty through brand strengthening
  • Overseas market expansion and local partnerships
  • Strengthened consumer trust in safe and secure food supply

Strategic Goals

  • Strengthen industry leadership as a grain solutions company
  • Achieve sustainable growth in each business of flour milling, oils and fats, saccharides, and feed
  • Expand and report environmental and social contributions aligned with SDGs
  • Optimize domestic and international manufacturing and sales bases and promote DX
  • Develop new technologies and expand product lineup
  • Improve employee satisfaction through comfortable workplace creation
  • Strengthen health-oriented products responding to consumer needs
  • Strengthen partnerships with local communities for mutual prosperity
  • Stabilize raw material procurement and build resilient supply chain
  • Ongoing growth as a comprehensive food company through diversified businesses

Business Segments

Commercial Flour Milling and Premix Products

Overview
Stably supplies high-quality flour milling and premix products for commercial use, supporting customer product development.
Competitiveness
Domestic top-class flour milling technology and multi-variety対応 capability
Customers
  • Bread manufacturers
  • Confectionery manufacturers
  • Food processors
  • Restaurant chains
  • School meal providers
  • Hotels
  • Restaurants
Products
  • Wheat flour
  • Tempura flour
  • Hotcake mix
  • Premix flour

Edible Oil Supply

Overview
Stably supplies commercial edible oils, providing quality control and functionality.
Competitiveness
High quality control and supply stability
Customers
  • Food service industry
  • School meal providers
  • Food manufacturers
  • Processed food makers
Products
  • Salad oil
  • Frying oil
  • Plant-based health oils and fats

Saccharide Manufacturing and Supply

Overview
Provides diverse high-quality saccharide products utilized as raw materials in multiple fields.
Competitiveness
Diverse sugar product lineup and stable supply capability
Customers
  • Confectionery makers
  • Soft drink makers
  • Food processors
  • Pharmaceutical makers
Products
  • Crystalline glucose
  • Isomerized sugar
  • Corn starch

Compound Feed Sales

Overview
Provides high-quality compound feed for livestock and aquaculture, supporting growth promotion.
Competitiveness
Nutritional design capability and quality control for feed
Customers
  • Poultry farmers
  • Livestock farmers
  • Aquaculture farmers
Products
  • Compound feed in general
  • Nutrient-enhanced feed

Grain Silo and Logistics Services

Overview
Supports customers' supply chains through grain storage and distribution management.
Competitiveness
Extensive silo network across wide areas
Customers
  • Grain importers
  • Flour milling companies
  • Food manufacturers
Products
  • Grain silo storage
  • Logistics management services

Real Estate Leasing

Overview
Secures stable revenue through real estate leasing business including head office building.
Competitiveness
Ownership of well-located properties
Customers
  • Corporations
  • Individual tenants
Products
  • Office building leasing
  • Commercial facility leasing

Competitive Advantage

Strengths

  • Top domestic market share in the flour milling industry
  • Diversified food ingredients business
  • Product development capabilities and diverse brand deployment
  • Stable customer base and extensive sales network
  • Ministry of Health, Labour and Welfare certified comfortable workplace environment
  • Production stability from multiple domestic and international factories
  • Business diversification through numerous subsidiaries
  • Long-standing brand power
  • Flexible product development responding to customer needs
  • Robust supply chain construction

Competitive Advantages

  • Overwhelming market share in tempura flour due to proprietary technology
  • Broad business areas in flour milling, oils and fats, saccharides, and feed
  • Business expansion through subsidiaries and affiliates
  • High social evaluation from obtaining next-generation certification mark
  • Logistics and production efficiency via bases domestically and internationally
  • Optimized customer touchpoints through diverse sales channels
  • Aggressive M&A based on stable financial foundation
  • Sales strategy focused on supporting customer product development
  • Product portfolio corresponding to wide range of uses
  • Expansion of health-oriented product lineup and differentiated brands

Threats

  • Declining demand due to population decrease in domestic food market
  • Risk of international fluctuations in raw material prices
  • Intensifying price competition with competitors
  • Strengthened food safety standards and regulatory changes
  • Risk of increased production costs from environmental issues
  • Emergence of local competitors in overseas markets
  • Risk of production site damage from natural disasters
  • Profit pressure from exchange rate fluctuations
  • Impact on demand from emergence of new alternative foods
  • Decline in productivity due to labor shortages

Innovations

2020: Making Bosso Yushi Co., Ltd. a consolidated subsidiary

Overview
Made Bosso Yushi a wholly-owned subsidiary through tender offer, strengthening edible oil business.
Impact
Successfully created synergies and expanded business in oils and fats sector

2020: Making San-Ei Saccharification Co., Ltd. a wholly-owned subsidiary

Overview
Made it a subsidiary to strengthen competitiveness in saccharification products and expand product lineup.
Impact
Contributed to expanding market share in saccharide products

2023: Launch of new plant-derived protein brand

Overview
Established a brand for plant-based protein products in response to rising health consciousness.
Impact
Successfully pioneered new health food market

2021: Development of shelf-life extension technology for edible oils

Overview
Improved convenience by extending shelf life of edible oil products using proprietary technology.
Impact
Contributed to higher consumer satisfaction and waste reduction

2022: Promotion of digital transformation

Overview
Achieved efficiency by digitizing production and logistics processes.
Impact
Reduced production costs and improved quality control

2024: Price adjustment for commercial wheat flour

Overview
Implemented price system review in light of soaring raw material prices to respond to market.
Impact
Balanced revenue maintenance and strengthened customer relations

Sustainability

  • Promotion of paternity leave uptake and obtaining next-generation certification mark
  • Production adjustments and sales strategies to reduce food loss
  • Expansion of renewable energy use
  • Improvements in manufacturing processes to reduce environmental impact
  • Support activities for environmental education in local communities
  • Promotion of plastic packaging reduction and recycling enhancement
  • Sustainable procurement across the entire supply chain
  • Product development to promote healthy eating habits
  • Strengthened safety and hygiene management systems
  • Promotion of employee diversity and equity