Kanro

Basic Information

Stock Code
2216
Industry
Food Products
Category Detail
Food Manufacturing
Prefecture
Tokyo
Establishment Year
May 1950
Listing Year
September 1962
Official Website
https://www.kanro.co.jp/
TSE Information
TSE Information
Yahoo! Finance
Yahoo! Finance
Other Companies
Miki Kogyo, Morinaga & Co., Ezaki Glico, Bourbon, Fujiya, Morozoff, Kameda Seika, Iwatsuka Confectionery, Kotobuki Spirits, Koikeya, Calbee, B-R 31 Ice Cream, Town News Co., Okamura Food Industry, Landix, Virus Plus Holdings, Mobile Factory, OAT Agrio, Asahi Information Service

Overview

Kanro is a major manufacturer founded in 1950, specializing primarily in candy production, and holds a high market share and innovative position in the fields of throat lozenges and gummies.

Current Situation

Kanro recorded net sales of approximately ¥31.8 billion and ordinary income of approximately ¥4.3 billion for the fiscal year ending December 2024, maintaining a stable financial base. Its flagship products, Kanro Candy and Health Throat Lozenges, boast high brand recognition and sustain market competitiveness. In recent years, the company has actively expanded its gummy business, planning to invest ¥13 billion in expanding its Asahi factory in Asahi Village, Nagano Prefecture, to strengthen production capacity. Through collaboration with Mitsubishi Corporation and its status as an equity-method affiliate, it secures a stable transaction base. The company is also focusing on sustainability management, having been selected for the Top 100 Diversity Management Companies, and engages in operations considerate of social responsibility. Moving forward, it aims to expand the market by strengthening sugar-centered food development under the corporate philosophy of 'Creating the future from sugar.' It promotes brand penetration through promotional activities such as TV program sponsorship and diversifies its product lineup through health-oriented product development. It is strengthening corporate culture and long-term growth strategies through the establishment of corporate slogans and purpose.

Trivia

Interesting Facts

  • Kanro Candy was the first individually wrapped candy in Japan.
  • The company name Kanro derives from the Sanskrit word for nectar.
  • Founded in 1912, it is a long-established candy manufacturer with over 100 years of history.
  • Equity-method affiliate of Mitsubishi Corporation, maintaining stable business relations.
  • Headquarters located in the advanced Tokyo Opera City Building.
  • Health Throat Candy series is highly rated as functional displayed foods.
  • Deploys branches nationwide for wide product sales.
  • Large-scale expansion of Asahi Factory indicates growth in the gummy market.
  • Strengthens brand power through multifaceted promotions like sole TV program sponsorship.
  • Purpose is 'One heart grows bigger.'
  • Deploys diverse gummy products as popular brands among youth.
  • Holds ISO 14001 certification and thoroughly manages the environment.
  • Focuses on community contributions such as fairy tale movie events for children.
  • Uniquely uses soy sauce as a secret ingredient in candies.
  • New gummy factory construction planned in multiple locations including Fukushima.

Hidden Connections

  • Has Mitsubishi Corporation as its largest shareholder, with strong ties to the major trading company group.
  • Acquired Mitsu Kogyo, which has ties to the founding location in Yamaguchi Prefecture, and continues the relationship.
  • As a company with headquarters in Tokyo Opera City, it has connections to creative industries.
  • Health ingredient research centered on Toyosu Laboratory serves as a hub for technological collaboration among food manufacturers.
  • Sponsors multiple popular TV Tokyo programs, establishing a unique position in the industry through media strategy.
  • Thoroughly practices environmentally considerate management with ISO 14001 certification and collaborates with local governments.
  • Deploys sales offices and branches in major cities nationwide, with a regionally integrated sales network.
  • The secret soy sauce in Kanro Candy reflects deep ties to Japanese food culture.

Future Outlook

Growth Drivers

  • Increasing demand for health-oriented products
  • Expansion and diversification of the gummy market
  • Strengthening research and development of functional foods
  • Utilization of digital marketing
  • Innovation in sustainable packaging technology
  • Strengthening regionally integrated sales network
  • Enhancing corporate value through diversity promotion
  • Enriching product lineup for overseas markets
  • Expansion of direct sales and EC channels
  • Introduction and commercialization of new health ingredients

Strategic Goals

  • Achieve over 50% sales ratio for gummy products
  • Reduce CO2 emissions by 30% through environmental load reduction
  • Establish diversity-promoting corporate culture
  • Strengthen directly operated stores in major cities nationwide
  • Exceed ¥20 billion in annual sales of health-oriented products
  • Build sustainable raw material supply system
  • Expand sales through digital promotion channels by 30%
  • Expand ISO-certified sites
  • Maintain employee satisfaction above 90%
  • Conduct more than 10 regional social contribution activities annually

Business Segments

Raw Material Supply for Food Manufacturers

Overview
Supplies raw materials for candy and gummies as well as functional materials to food manufacturing companies.
Competitiveness
High-quality raw materials and technical support
Customers
  • Candy manufacturers
  • Gummy manufacturers
  • Health food makers
  • Small and medium confectionery companies
Products
  • Candy materials
  • Gummy materials
  • Functional ingredients
  • Packaging materials

Product Supply for Retailers

Overview
Provides a wide range of confectionery products to retailers and achieves stable supply.
Competitiveness
Logistics network and product diversity
Customers
  • Major supermarkets
  • Convenience store chains
  • Drugstores
  • Specialty confectionery stores
Products
  • Various Kanro Candies
  • Health Throat Candy series
  • Gummy products
  • Functional confectionery

OEM and Contract Manufacturing Services

Overview
Performs contract manufacturing for original products to meet diverse needs.
Competitiveness
Technical capabilities and flexible production system
Customers
  • Food brand companies
  • Health food companies
  • Original product development companies
Products
  • Candy OEM manufacturing
  • Gummy OEM manufacturing
  • Functional food contract manufacturing

Export Business for Overseas Markets

Overview
Expands sales of health-oriented confectionery products to overseas markets.
Competitiveness
Reliability of Japanese brands
Customers
  • Overseas retailers
  • Local food wholesalers
  • Import agents
Products
  • Throat lozenges
  • Gummies
  • Health confectionery

Competitive Advantage

Strengths

  • Brand power of unique soy sauce-flavored Kanro Candy
  • Deployment of high-quality, diverse health functional confectionery
  • Aggressive investment and growth potential in the gummy market
  • Stable capital and financial base
  • Strong partnership with Mitsubishi Corporation
  • Reliability backed by long history
  • Nationwide sales network
  • ISO 14001 certification for environmental management
  • Regionally integrated business development
  • Diversity management promoting internal diversity
  • Brand expansion through effective TV program sponsorship
  • Innovative functional food development capabilities
  • Strong R&D system (Toyosu Laboratory)
  • Aggressive factory expansions and equipment investments
  • Customization capabilities for products

Competitive Advantages

  • Possesses the one-of-a-kind candy brand with soy sauce as a secret ingredient
  • Deploys diverse product lines from candy to gummies to meet market needs
  • Builds stable and large-scale sales channels with Mitsubishi Corporation as the largest shareholder
  • Successfully creates added value with health-oriented functional throat lozenges
  • Decides on ¥13 billion large-scale equipment investment in gummy market to strengthen production system
  • Practices sustainable business activities with environmental ISO certification
  • Excels in quality preservation with unique product packaging and individual wrapping technology
  • Enhances corporate culture and brand value through mid- to long-term purpose formulation
  • Achieves risk diversification through diverse sales channels
  • Strengthens corporate image through collaboration with prominent media like TV Tokyo
  • Practices coexistence with local communities to enhance brand loyalty
  • Deploys multifaceted product strategies while specializing in specific product groups
  • High-quality production system by skilled manufacturing technicians
  • Directly operated store expansion considering multi-store management
  • Succeeds in differentiation by introducing innovative health functional ingredients

Threats

  • Intensifying competition in the confectionery industry leading to price competition pressure
  • Fluctuations in raw material prices affecting profit margins
  • Changes in consumer preferences due to health trends
  • Market share competition with overseas products
  • Increased production costs due to labor shortages
  • Increased compliance costs from strengthened environmental regulations
  • Impact on logistics and production during COVID-19 or infectious disease outbreaks
  • Global risks to resource constraints and supply chains
  • Risk of declining competitiveness from delays in technological innovation
  • Instability in capital procurement due to declining redemption rates or stock price fluctuations
  • Sales and advertising restrictions from strengthened legal regulations
  • Increased burden from tax system changes such as consumption tax

Innovations

2025: Enhancing Production Capacity with Asahi Factory Expansion

Overview
Investing ¥13 billion to start expansion work at the factory in Asahi Village, Nagano Prefecture.
Impact
Expecting significant increase in gummy product production capacity

2024: Launch of Health Throat Candy Fight Plasmacyte Lactic Acid Bacteria iMUSE

Overview
Launching new functional displayed food product containing lactic acid bacteria.
Impact
Successfully acquires new customers in the health-conscious segment

2022: Renewal of Corporate Slogan and Establishment of Purpose

Overview
Renewed corporate philosophy to 'Creating the future from sugar' to emphasize future orientation.
Impact
Improved brand image and boosted employee motivation

2023: Improvement of Product Individual Wrapping Technology

Overview
Renewed packaging materials to improve quality preservation and convenience.
Impact
Contributes to product freshness maintenance and waste reduction

2021: Acquisition of ISO 14001 Environmental Management Certification

Overview
Established environmental protection system and sustainable manufacturing framework.
Impact
Enhanced trust in social responsibility

2020: Start of New Health Ingredient Research at Toyosu Laboratory

Overview
Advancing research and development of lactic acid bacteria and functional materials.
Impact
Strengthened foundation for new product development

2026: Installation of New Gummy Dedicated Production Line

Overview
Equipment renewal to strengthen popular gummy brands featured on TV.
Impact
15% increase in production volume and cost reduction

Sustainability

  • Promotion of diversity & inclusion management
  • Promotion of plastic packaging recycling
  • Active participation in local cleanup activities and environmental awareness
  • Strengthening sustainable raw material procurement
  • Emphasis on employee health maintenance and work-life balance
  • Factory equipment improvements to reduce CO2 emissions
  • Promotion of local employment and regional economic contribution
  • Improvement of energy efficiency and introduction of renewable energy
  • Enhancement of information disclosure through CSR reports
  • Promotion of development of locally sourced products
  • Efforts to reduce food loss
  • Enhancing environmental awareness through employee education